The Relationship Between Knowledge Mangagement, Organizational Learning, and Organizational Performance in Small and Medium-Sized Enterprises in Danang City

Abstract

In the contemporary rapidly evolving business environment, enterprises face ongoing challenges in maintaining their competitive edge. These dynamics require organizations to effectively utilize their intellectual resources, adapting to changing market conditions while building sustainable competitive strengths. This study investigates how organizations can leverage their  knowledge assets to improve performance outcomes, focusing specifically on the interconnections among knowledge management practices, organizational learning capabilities, and business performance.The research examines small and medium enterprises (SMEs) operating in Da Nang City, Vietnam, where numerous companies are striving to enhance their market position through improved management practices. Using a quantitative research design, data was gathered from 528 participants across various SME sectors during April 2025. The analytical approach employed Structural Equation Modeling (SEM) to examine the hypothesized relationships among four primary constructs: Knowledge Management practices, Organizational Learning capabilities, Organizational Performance metrics, and Knowledge Transfer mechanisms. The empirical findings demonstrate significant positive relationships among all studied variables. Knowledge management initiatives showed direct positive effects on both learning capabilities and performance outcomes. Additionally, organizational learning was found to partially mediate the relationship between knowledge management practices and business performance. These results provide valuable insights for SME managers seeking to enhance their organizations' competitive position through systematic knowledge utilization and continuous learning initiatives.