Influence of transactive memory systems and strategic orientations on the performance of hospitality firms

Purpose - Since the hospitality industry is driven by people, effective utilization of knowledge among various organizational units is required to ensure guest satisfaction and in turn superior performance. Research trying to find the implications of transactive memory systems (TMSs), an integrative mechanism for knowledge management in organizations, has yielded ambiguous and mixed results, leading the researchers to believe that the linkages may not be as straightforward as previously imagined. In this study, the authors theoretically build their arguments based on the knowledge-based view of the firm and empirically test these linkages using data collected from the small hotels of India. Design/methodology/approach - Data were collected from the owner-managers or senior executives of small hotels operating in the Uttarakhand state of India, and analysed using structural equation modelling (SEM) and Hayes process macro. Findings - It was found that for the hospitality firms, the TMS is an enabler for performance only when the focus of knowledge creation and utilization is on building effective strategic orientations. Further, the technology orientation (TO) and learning orientation (LO) of the hotel mediate the relationship between the TMS and firm performance. Practical implications - Effective knowledge sharing among employees helps availability of credible and crucial information about customers, which eventually helps in long-term mutually beneficial relationships with the customers, leading to greater economic value creation for the hotel. Originality/value - By establishing theoretical links between knowledge creation and utilization, and validating these linkages using data collected from the hotel industry in India, this study offers unique and useful insights for the theoretical advancement of the hospitality literature. This study also makes a case that small hotels investing their energy and resources into the creation of a transactive memory systems could reap benefits through appropriate strategic postures.