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Abstract
This study examines the effects of knowledge sharing on employees’ digital competence and digital transformation in Vietnamese joint-stock commercial banks. Drawing on the Knowledge-Based View and Absorptive Capacity Theory, the study proposes and empirically tests a mediation model in which digital competence serves as the underlying mechanism linking knowledge sharing to digital transformation. Data were collected from 257 bank employees analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results indicate that knowledge sharing has a positive effect on both employees’ digital competence and banks’ digital transformation. Moreover, digital competence positively influences digital transformation and partially mediates the relationship between knowledge sharing and digital transformation. Based on these findings, the study proposes several recommendations to facilitate the transformation of shared knowledge into digital transformation outcomes through employees’ digital competence.