Determinants of Hotel Performance: The Roles of Knowledge Capability, Task Conflict, Leadership, and Transactive Memory System with Innovation Capability as a Mediator

Abstract

This study examines the determinants of hotel performance by investigating the roles of Knowledge Management Capability (KMC), Knowledge-Oriented Leadership (KOL), Transactive Memory System (TMS), and Task Management Conflict (TMC), with Innovation Capability serving as a mediating variable. Grounded in Social Exchange Theory, the Knowledge-Based View, Dynamic Capabilities Theory, Upper Echelons Theory, and Organizational Learning Theory, the study employs a quantitative explanatory approach. Data were collected through a structured questionnaire administered to 165 employees of four-star and five-star hotels in Jakarta, Indonesia. The proposed hypotheses were tested using Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings reveal that KMC, KOL, TMS, and TMC positively and significantly influence both Innovation Capability and Hotel Performance. Innovation Capability also has the strongest direct effect on Hotel Performance and significantly mediates the relationships between the four antecedent variables and organizational performance. These findings highlight the strategic importance of knowledge-based resources, collaborative leadership, collective memory systems, and constructive task conflict in strengthening innovation capability and enhancing hotel performance. The study contributes to the hospitality management literature by providing an integrated framework explaining how organizational capabilities translate into superior performance through innovation.