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Purpose

This paper aims to investigate the influence of collaborative culture and knowledge sharing on innovation performance via moderating role absorptive capacity.

Design/methodology/approach

This paper used structural equation modeling to examine the level of how collaborative culture and knowledge sharing impact on innovation performance using data collected from 271 Vietnamese firms.

Findings

The research findings show knowledge sharing mediates the relationship between collaborative culture and innovation performance. It highlights the moderating role of absorptive capacity in fostering the effects of tacit and explicit knowledge sharing on innovation performance.

Research limitations/implications

Further research should examine the potential moderating effects of absorptive capacity in the knowledge management–innovation relationship to bring deeper understanding on the role of knowledge resource and innovation.

Practical implications

This paper offers leaders a deeper understanding of the necessary factors and conditions to promote innovation performance in their firms.

Originality/value

This paper significantly contributes to theoretical and practical initiatives of innovation by highlighting the antecedent roles of collaborative culture, the mediating role of knowledge sharing and moderating role of absorptive capacity.

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