AbstractThe 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 ind.....