KM Approach for Improving the Labor Productivity of Vietnamese Enterprise

In knowledge society, knowledge management (KM) is considered the best strategy for improving the labor productivity of an enterprise. However, the effectiveness of KM on labor productivity is not known exactly, especially since it depends on the development level of a country. To find a solution based on KM approach for improving the labor productivity of Vietnamese enterprise, a new model is proposed, which includes knowledge capability, technology capability, KM, employee satisfaction, and labor productivity. By analyzing data from Vietnamese enterprises, the model is tested and suggestions for improving the labor productivity of Vietnamese enterprises are made. Some results of data analysis are: employee satisfaction positively affects the labor productivity and that KM has a strong effect on employee satisfaction. Further, some suggestions for improving the labor productivity of Vietnamese enterprises are: organizing frequent meetings for shortening cultural gap between managers and employees, replacing old machines combined with improving employees’ self learning skill, improving innovation capability by creating an open culture for encouraging employees to voice their opinions. DOI: 10.4018/978-1-4666-2485-6.ch012