Utilising new-generation FTA commitments: The role of knowledge sharing practices

Good knowledge management practices play a critical role in leveraging firm competitiveness in the knowledge economy. Organisational knowledge sharing is an essential aspect of business operation and is particularly crucial for circulating important knowledge and improving organisational learning. Given the context of rising free trade agreements in Vietnam, it is expected to generate enormous benefits for businesses by utilising such ambitious commitments. Therefore, the aim of this study is to explore the linkage between organisational knowledge sharing and the utilisation of FTA commitments of Vietnamese export firms. Based on extensive review, the research develops the questionnaire to assess business knowledge sharing practices, market knowledge and FTA utilization. A sample of 532 Vietnamese exporters was chosen for analysis using the PLS–SEM model. The study reveals that both knowledge sharing and market knowledge positively influence FTA utilisation. Knowledge sharing also indirectly enhances FTA utilisation by improving market knowledge. The increased market knowledge helps firms qualify for preferential trade terms, leading to a higher likelihood of successfully utilise FTA. The result implies that effective knowledge storing and circulating within organisations can further deepen the utilisation of FTA commitments through direct channel and indirect channel by enhancing market knowledge. Research on aspects of FTA utilisation with regard to knowledge sharing practices is still limited, especially in Vietnam. This study pioneered in exploring the linkage between knowledge sharing and FTA utilisation.