Structural relationship of knowledge management, process innovation and organizational performance in the Malaysias hotel tourism industrty

The purpose of this study is to identify the effectiveness of hotel tourism in Malaysia. A research model was suggested to investigate the significance of the issue. The research conceptual framework was established according to three theories namely theory of knowledge management (KM), theory of process innovation (PI), and theory of organizational performance (OP) as measurements in designing research objective and questionnaires. PI was suggested to be the mediator in this study. A survey through questionnaire was conducted to determine the level of KM implementation, PI implementation and OP measurement. There were 223 sets of questionnaire that have been successfully collected which brought to 62.8% response rate. The data were analysed using Partial Least Squares Structural Equation Modelling (PLS SEM). The findings showed that, there was a significant relationship between KM, (r = .354, p < .01), PI (r = .763, p < .01) and OP (r = .334, p < .01) in Malaysia’s hotel tourism industry. These relationships have produced a structural model of relevant prediction. The findings of this study have also showed that PI is a partial mediator in the model. In conclusion, this study can contribute to the implementation of effective policies for the Malaysia’s hotel tourism industry in order to constantly improve the OP through the implementation of KM and PI. Besides, this study also provides a policy implication direction for researchers in further research and practitioners and a systematic guideline of relationship between KM, PI and OP especially in hotel tourism industry