Knowledge Sharing and Service Innovation as a Key Business Success of the Hospitality Industry in Indonesia

The success of the hospitality business is inseparable from the application of knowledge sharing and service innovation. This study aims to look at the effect of knowledge sharing and service innovation on the success of the hotel business in Indonesia, both directly and indirectly. Participants or respondents in this study are the managers in a one-star, two-star hotel and non-star in West Java and Central Java, Indonesia. The total of 235 questionnaires was successfully collected and processed using the Structural Equation Modeling method by using Amos Software Version 23. The results of the study show that there is a positive and significant influence between knowledge sharing on service innovation. Knowledge sharing and service innovation also positively and significantly affect the business success of the Hospitality industry in Indonesia. The finding also found that service innovation has a role as a mediator between knowledge sharing on business success. We recommend improving knowledge sharing practice and service innovation in the hospitality sector in Indonesia.