Journal of Critical Reviews

ISSN- 2394-5125 Vol 7, Issue 12, 2020

IMPACT OF IT INFRASTRUCTURE AND KNOWLEDGE MANAGEMENT CAPABILITY ON

ORGANISATIONAL PERFORMANCE OF STAR HOTELS IN SRI LANKA
1Mubarak Kaldeen , 2Samsudeen Sabraz Nawaz , 3Azizul Hassan
Department of Marketing,South Eastern University of Sri Lanka
1

Email:kmmubarak@seu.ac.lk
2Department of Management and Information Technology,South Eastern University of Sri Lanka

Email:sabraz@seu.ac.lk
3Tourism Consultants Network,The Tourism Society, UK

Received: 16.03.2020 Revised: 18.04.2020 Accepted: 19.05.2020

Abstract
Today, the organizational environment is changing rapidly and the competitive environment is very volatile, as a result, business firms
face new challenges, especially, the competition increased with the changes environment in which they operate. One of the strategic
philosophies assisting firms at this juncture to develop strategic capabilities dealing with uncertainty is knowledge management
infrastructure capabilities. Through enhanced technological infrastructure and systematic implementation of knowledge management
process organizations able to develop strategies that enable them to be proactive and adaptable to external changes and achieve better
organizational performances. The main aim of this study is to analyse the impact of Information Technology (IT) infrastructure and
Knowledge Management process capability on Organizational Performance of star rated Hotels in Sri Lanka. Empirical examination of the
hypothesized relationships among variables is conducted by means of questionnaire surveys in Sri Lanka. The 233 responses received
from respondents serving as managers in star hotels and the data analysed using AMOS version 23.0. According to the results of SEM
analyses, the proposed measurement model satisfied the necessary fit conditions. The empirical evidence confirms that the technological
infrastructure capability is correlated and it is an enabler of knowledge management process capability on organizational performance of
star rated hotels in Sri Lanka. In addition to theoretical contributions, the study also attempts to provide a variety of practical
recommendations for hotel managers, to be successful in utilizing IT resources on knowledge management to the attainment of better
organizational performances.
Keywords: Information Technology, Knowledge Management, Organisational Performance, Star Hotels
© 2020 by Advance Scientific Research. This is an open-access article under the CC BY license (http://creativecommons.org/licenses/by/4.0/)
DOI: http://dx.doi.org/10.31838/jcr.07.12.181

INTRODUCTION the data helps knowledge sharing, as a result, data can be

Technology consists of the mechanism that facilitates the
creation and dissemination of knowledge in the best possible
way within an organization and organisations use technology as
a technical mechanism for efficient knowledge transfer within
and outside the firm. Technology placed in core position in the
integrated Knowledge Management (KM) framework to preserve
and expand core competencies by tapping into knowledge base
of skills and experiences of employees and finding ways to access
existing knowledge and create and transmit new knowledge.
Knowledge is an important asset that determines ability of an
organisation to achieve sustainable competitive advantage and
play a major role in assisting the organizations to achieve
performance excellence (Heisig et al., 2016).
The impact of Information Technology (IT) on firm’s
performance is an important issue that allows manager to
perceive the importance of technological resources and
investment, which includes, software applications, IT
infrastructure, IT assets that positively influence the firms’
internal and external capabilities. IT needs to be complemented
with other business functions such as marketing and supply
chain management in order to generate revenues (Liao et al.,
2010). Technology applications are to ensure that the
organisational knowledge is shared among employees and its
utilisation is maximized by all of them for the betterment of the
organisation and its customers. Accordingly, IT is considered as a
valuable organizational resource that can enhance organizational
capabilities and eventually lead to higher performance (Liao et
al., 2010). Hence, IT infrastructure of KM capabilities has
significant and positive impact on organizational performance
(Alkhaffaf et al., 2018). The technical infrastructure must enable
each of the individual KM processes, enhanced IT capability of
organisations to manage the data, store the data inside databases
or online repository help to protect knowledge, track and analyse
processed and organised to make it as useful information that
provide a better insight into the current experience and expertise
of an organisation (Liu and Deng, 2015) and Ling concluded that
IT needs to be introduced through a set of organizational changes
in order to have a positive impact on elements of knowledge.
Technological Infrastructure and Tourist Hotels
The tendency of poor performance of hotels in Sri Lanka (STDA,
2017), is the failure to facilitate organizational efficiency by
ignoring the importance of managing knowledge-based
technology. The IT and KM processes impede the overall
effectiveness of organizational performance (OP). In the local
context, it was revealed by managers of hotels at the initial
interviews the researcher had with them that many hotels have
limited organizational resources and are struggling to meet the
needs of their customers. The knowledge has been managed
more informally than in formal ways in other words not
effectively implemented and managed using IT. However,
increasing global competition and growth of marketplaces have
created a competitive incentive to manage their knowledge-
based technology assets as a means of creating value that is
inimitable over time. KM is gaining more importance among
tourism industry as a vital contributor to organization’s success
and as one of the management tools (Mukhtar et al., 2015). On
the other hand, IT applications on KM are relatively new in hotels
in Sri Lanka, and some hoteliers still do not have proper IT
system on KM processes, and many organizations tend to
incorporate programs of KM without proper consideration of the
company’s capabilities and processes to guarantee any measure
of success. This study found that 38% of the managers of star
hotels said Internet and Computer technology are used to
improve the KM performance of their hotels, while others agreed
IT is a key enabler to improve KM practices at the hotels.

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IMPACT OF IT INFRASTRUCTURE AND KNOWLEDGE MANAGEMENT CAPABILITY ON ORGANISATIONAL PERFORMANCE
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However, it is clear that majority of the star hotels in Sri Lanka
has the strategy for the development of IT infrastructure to
enable the KM practices more effective.
If there is an effective knowledge-based technology capability
build in the hotel sector, service quality can be enhanced by
improving the KM practices because service quality depending
on the acquisition, accumulation, storage, and distribution of
knowledge assets. Sharing and retaining the knowledge
employees may minimize the employee turnover. The KM
capabilities assist the overall strategic planning process
significantly. When transforming knowledge in to practice;
combining knowledge with networking process by identifying
the knowledge needed, capturing, and sharing the gained
knowledge through networking, the potential can be optimized
for the tourism industry. Tourism information network through
knowledge sharing and creation will create competitive
advantage, while the development of new innovation and
knowledge will maximize the wealth of firms and will support for
better decision making.
In brief, Sri Lanka tourism suffers from poor planning and
management and value addition (Sri Lanka Tourism
Development Authority, 2017). This strategic failure needs a
transformation through improved KM capabilities. The challenge
for tourism sector is in formulating IT based KM implementation
strategy and decide on which type of inputs to invest in to
improve firm performance. Hence, it is proved that the KM is
important competitive tool for hotel sector to gain competitive
advantage through building IT infrastructure. Technology based
KM process capabilities are important to have an effective KM
system in the hotels. Therefore, this study examines the impact of
IT infrastructure and KM process capabilities on improving OP of
star hotels in Sri Lanka.
IT infrastructure play an important role in improving
organization effectiveness mainly resulting in improved
communication, enhanced collaboration, improved employee
skills, better decision-making, and improved productivity
(Sangeetha, 2015), IT applications such as information
repository and email system helps firms to achieve sustainable
competitive advantage, There was a strong and positive
relationship between KM capabilities and hotel performances,
such as, market share gain, sales growth, profitability, efficiency
of operations, and quality of services (Alkhaffaf, 2018), Findings
indicate that information technology helps to the firms to be
more flexible in the uncertain environments and to be more
openness to learning best practices, firms would have proper
control and satisfactory communication. IT and OS are drivers of
firm performance such as, profitability, ROI, sales growth, market
share, customer satisfaction (Obeidat et al., 2016), IT capabilities
contribute directly to improved organizational process such as
coordination, transaction specific investment, absorptive
capacity and monitoring. These in turn contribute to strategic
and operational performance outcomes.
Technology Infrastructure and KM process
Technology capabilities can affect Knowledge Management
Process (KMP) effectiveness through two paths. First, an
appropriate technology must be in place for effective KMP.
Second, technology can enable the flatter organizational
structures that increase the effectiveness of KMP. Advanced
technological infrastructures in the form of communications
networks allow structures that are more appropriate for
effective KMP. Organizations are using technologies to facilitate
communication, interaction and flow of knowledge between
different parties (Obeidat et al., 2016). Technological knowledge
management infrastructure is a technical system within an
organization that determine how knowledge travels throughout
the organisation and how knowledge is accessed. Collaboration
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and learning technologies allow individuals within the
organization to work together and collaborate interactively.
Collaboration is seen as one of the key manners in which
knowledge is transmitted and created within the organization.
Knowledge discovery technologies help a firm to search for new
knowledge that is either external or internal. Knowledge
mapping technologies allow a firm to track its sources of
knowledge so that individuals in need of a specific type of
knowledge know where it resides. Knowledge application
technologies enable a firm to use its existing knowledge.
Opportunity generation technologies allow a firm to generate
and store knowledge about its customers, partners, employees,
or suppliers (Agus and Suhadak, 2013).
Technology infrastructure is an essential enabler of other
knowledge resources such as knowledge acquisition and
knowledge application processes. Technology facilities
encourage the knowledge sharing and provide the employees
with the knowledge they required (Abdi et al., 2018).
Organizations can enhance their performance by acquiring and
using technologies that facilitates knowledge discovery, creation
and application and adopting cultures that facilitates interaction
among employees, encouraging employees to properly master in
their task and that of others, and communicate freely with
employees of different areas of specialization.
The development of information technology has made it possible
to codify, store, share, and disseminate certain kinds of
knowledge beyond physical and time barriers more easily and
cheaply than ever before. It alleviates the temporal, physical, and
social distances, and closely ties persons who develop knowledge
to those who want the knowledge through virtual person-to-
person knowledge sharing (Agus and Suhadak, 2013).
KM Process and Organisational Performance
The critical elements of KM process are: knowledge creation,
acquisition, storage, application and protection.
Knowledge creation is significantly and positively influencing
organizational performance by increasing staff performance,
work relationships, innovation, productivity, customer
satisfaction, and financial performance (Gholami et al., 2013).
Kambiz and Aslan (2015) found that employees with rich
knowledge creation experience help to improve the
organizational performance while Mukhtar et al., (2015) found
knowledge creation and organizational performance have
significant and positive relationship between them. Further,
Rehman et al., (2015) said knowledge creation practices
significantly and positively contribute to overall performance of
firms.
Knowledge acquisition component of KM need to be developed
managed and integrated into organisational processes and
practices to improve OP. The knowledge acquisition is an
important KM process that helps firms to acquire knowledge that
is most important to support competitiveness and survival of the
firm. Knowledge acquisition is the main contributor to firm
performance (Gholami et al., 2013). Knowledge acquisition is
one of the critical elements for promoting the performance of
organizations while Bashir et al., (2014) says this is one of the
ways through which organizations could improve their
performance goals. Rehman et al., (2015) too found that
knowledge acquisition practices contribute to overall
performance of firms positively.
Knowledge storage also an important element for promoting the
performance of organisations. The knowledge application
practices represent the improved performance (Gholami et al.
2013). The rich knowledge storage experience may improve the
OP on devotion to learning, open-mindedness and joint vision
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IMPACT OF IT INFRASTRUCTURE AND KNOWLEDGE MANAGEMENT CAPABILITY ON ORGANISATIONAL PERFORMANCE
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(Kambiz and Aslan, 2015). Bashir et al., (2014) says knowledge
storage is an important KM practice that help organizations to
improve their performance goals while Rehman et al., (2015)
found that this practices significantly and positively contribute to
overall performance of firms which is a combination of
operational excellence, customer intimation, product leadership
and financial achievements.
Knowledge application is one of the ways through which
organizations could improve their performance goals (Bashir et
al., 2014). Knowledge utilization and OP have positive
relationship (Mukhtar et al., 2015). Overall performance of firms
is a combination of operational excellence, customer intimation,
product leadership and financial achievements and knowledge
application are positively correlated (Rehman et al., 2015).
Knowledge of organizational members is a critical strategic
resource that should be treated and retained for better financial
and non-financial performances of firms. Loss of knowledge can
result in duplication of work, expensive searches for expertise
and knowledge, and employees not learning from the
experienced that lead to poor OP (Abid et al., 2018). Hence, there
is a positive relationship between KM process and OP.
METHODOLOGY
Measuring Technological infrastructure, KM Process and OP
Technology refers to the systems of the firm that allow the
capture, flow, access and use of knowledge through the
enterprise. The technical systems within an organisation
determine how knowledge travels throughout the enterprise and
how knowledge is accessed (Alkhaffaf et, al., 2018). By relying on
the number of dimensions of technological infrastructure which
includes formatting, collaboration, business intelligence,
knowledge retrieval, knowledge mapping, knowledge
application, technical skills, computer based systems and
opportunity generation technologies generated through
literature, a twelve-item measure of this construct was
developed by Gold et al. (2001) which was later refined and
other scholars in different contexts. Eight measure items of the IT
variable were adopted in the current study from previous
literatures of Alkhaffaf et al., (2018).
Gold et al. (2001) categorized the KM process into acquisition,
conversion, application, and protection whereas Obeidat et al.,
(2016) included Knowledge Acquisition, Knowledge Sharing and
Knowledge Utilisation. Abdi et al. (2018) incorporated Capture
Knowledge, Creation Knowledge, Dissemination Knowledge,
Organisation Knowledge, and Knowledge Storage. Alkhaffaf et al.,
(2018) viewed the KM process as including Knowledge
Acquisition, Knowledge Conversion, Knowledge Application, and
Knowledge Protection. In this study, the KM process is
considered to be a comprehensive process that includes the life
cycle of knowledge. Thus, based on the definition of the KM
process, it is operationalized items to measure these constructs
as knowledge creation, knowledge acquisition, knowledge
storage, knowledge application and knowledge protection.
OP is the level of target achieved by an organization or an
evaluation of the effectiveness of the individuals, groups, or
organization. Researchers have used several methods to measure
OP. Traditionally, researchers focused on financial indicators,
such as the profit maximization, cost reduction, sales growth, and
turnover rate; while the non-financial indicators, such as
customer satisfaction, retaining outstanding employees, product
development, and new competence, were infrequently used
(Agus and Suhadak, 2013; Rehman et al., 2015). Therefore, in this
study, the financial (profitability) and non-financial indicators
such as human resource, innovation, and marketing
performances are used to measure OP. This is in agreement with
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many previous scholars who investigated performance using
financial and non-financial indicators.
Data collection and analysis
The sampling design of this research was probability sampling
because the population was known and easy to collect data. The
sampling frame for this research is the list of all star rated tourist
hotels in Sri Lanka. Based on the probability sampling using
simple random sampling technique, 250 General Managers of
star hotels were selected as respondents because only persons at
the managerial level would have sufficient knowledge to
complete all questions and would provide the most reliable
estimates across the variables of this study
The study obtained primary data through survey method using
the questionnaire. The measurement scale that was developed
for each construct of technological infrastructure, KMP and OP by
adapting based on the previous studies to suit the current
context of star hotels in Sri Lanka. Five-point Likert scales were
used to measure the constructs in this study. A pilot survey was
carried out by distributing 35 questionnaires to randomly
selected managers of star hotels in Sri Lanka. The data obtained
from pilot survey was examined for reliability, completeness of
responses and construct validity through use of SPSS. The
Cronbach’s alpha values are greater than 0.7 (ex; IT 0.805, KMP
0.785 and OP 0.849).
After the data collection, data has been compiled and analysed by
using Statistical Package for the Social Science (SPSS) 23 and
Amos 23 software. At first, the data was cleaned by removing the
questionnaire with poor quality such as including missing values
or bias ratings. Then statistical techniques which are used for
analysing the data to achieve the research objectives, include
Cronbach’s Alpha test, Descriptive Statistics, Correlation
Analysis, Factor Analysis Exploratory Factor Analysis (EFA) and
Confirmatory Factor Analysis (CFA), and Structural Equation
Modelling (SEM).
Based on the mean values of IT inter-item correlation, there
seems to be in agreement in the all items KIT1, KIT2, KIT3, KIT4,
KIT5, KIT6, and KIT7, in IT except KIT8. Item KIT8 was dropped
based on the inter item correlation. The mean values of KM
process there seems to be in agreement in the items KMP1,
KMP3, KMP5, KMP6, KMP7, KMP8, KMP9, and KMP10 except
KMP2 and KMP4, in KM Process. Items KMP2 and KMP4 were
dropped based on inter item correlation (KMP2<0.3 and
KMP4>0.9). The construct of OP means values seem to be in
agreement in the items OP4, OP6, OP7, OP8, OP9, OP10, OP11,
and OP12. Hence, all items correlate adequately in the construct.
Items OP1, OP2, OP3 and OP5 were dropped based on the factor
loading and inter item correlation respectively.
Hence, all items correlate adequately in the construct. Items
extracted for factor analysis for IT was measured on 7 item, KMP
8 items and OP 8 items scale. It can be seen that the results of the
item analysis provide strong evidence that the scale items are
internally consistent. All items loaded significantly and clearly on
single components. Therefore, all items in the IT construct were
grouped and labelled according to the value loaded most highly
on that Technology. The indicators are represented by seven
measures with factor loading KIT1 (.822), KIT2 (.825), KIT3
(.867), KIT4 (.739), KIT5 (.878), KIT6 (.691), and KIT7 (.778)
respectively. All items in the KM process construct indicators are
represented with factor loading KMP1 (.873), KMP3 (.789),
KMP5 (.811), KMP6 (.899), KMP7 (.883), KMP8 (.937), KMP9
(.812), and KMP10 (.913). The OP indicators are represented by
measures with factor loading OP4(.547), OP6(.793), OP7(.847),
OP8(.808), OP9(.716), OP10(.794), OP11(.731), and OP12(.743).
Hence, all items correlate adequately in the construct. Moreover,
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in IT, KMP and OP all items were met with the rule of thumb of
factor loading above 0.5 considered for factor analysis.
Furthermore, before moving to further analyses, it is important
to confirm the sample adequacy and Bartlett’s Test of Sphericity.
The Kaiser-Meyer-Olkin (KMO) test was used to determine to
sample. The results accounted that The Kaiser-Meyer-Olkin
(KMO) is 0.899 (> 0.5: Hair et al., 2010). Hence, the results
confirm that sample adequacy of this study is good and it is
worth for conducting a further analysis. Bartlett's test of
sphericity test is conducted for the purpose of confirming the
variables to relate to one another enough to run a meaningful
EFA. As a rule of thumb, a p-value < 0.05 indicates that it is
suitable to continue with the factor analysis (Hinton et al., 2004).
The results confirmed that the constructs in this study accounted
p-value is < 0.001, which means that there are relationships
between the variables. Hence, it is considered that Bartlett's test
of sphericity test is appropriate to continue with the factor
analysis.

Final Measurement Model for IT, KMP and OP

Figure 1: Final Measurement Model

The multivariate normality for the IT, KMP and OP items were
identified. All the skewness and Kurtosis values were less than 1,
and the CR value for multivariate kurtosis of IT (4.606), KMP
(4.883) and OP (4.894) which is < 5 in magnitude. The composite
construct reliability measured for IT (0.931), KMP (0.960) and
OP (0.911), which are well above the acceptable level as
indicated in the literature (Hair et al., 2010). The average
variance extracted (AVE) for IT (0.659), KMP (0.750) and OP
Table 1: Direct effects of Antecedents on OP
Unstd.
Path
estimate
(0.566), which are greater than 0.5 and composite reliability for
IT (.931), KMP (0.960) and OP (0.911), which are greater than
AVE illustrated the convergent validity of the IT, KMP and OP.
Final Structural Model and Hypotheses Testing
The results of the structural model that was derived through the
SEM in and the results of hypotheses testing demonstrate the
relationship between the variables. The predictions of the
significant effects are as follows according to the Table 1.
Std.
S.E. C.R. P
Estimate

KMP. <--- KIT. .462 .135 3.427 *** .258

OrPe <--- KMP. .148 .043 3.424 *** .198

As per the analysis IT has significant direct effect on KMP and KMP has significant direct effect on OP.

Table 2: Hypothesis Testing

Standard Regression Weight Hypothesis Beta P-Value Conclusion

Technology ➔ Knowledge Management

Process H1 .258 *** Supported

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IMPACT OF IT INFRASTRUCTURE AND KNOWLEDGE MANAGEMENT CAPABILITY ON ORGANISATIONAL PERFORMANCE
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Knowledge Management Process ➔
Organisational Performance H2
H1: “There is a positive relationship between Technological
Infrastructure and Knowledge Management Process” is accepted,
because the standardised regression coefficient of the path
relationship is statistically significant between IT and KMP
(Regression Coefficient r= 0.258, significant level p = 0.000 <
0.05). This indicates that IT has significant influence on KMP.
Figure 2: Structural Equation Modelling
H2: “There is a positive relationship between Knowledge
Management Process and Organisational Performance” is
accepted, because the standardised regression coefficient of the
path relationship is statistically significant between KMP and OP
(Regression Coefficient r= 0.419, significant level p = 0.000 <
0.05). This indicates that KMP has significant influence on OP.
This finding is supported by Bashir et al. (2014), organizations
could improve their performance goals through effective KMP
(Agus and Suhadak, 2013). Further, Gholami et al (2013) and
Rehman et al., (2015) found that KMP positively and significantly
influenced their OP.
CONCLUSION AND RECOMMENDATIONS
IT is a crucial enabler in the implementation of an effective KM
system only if management cultivates a culture of learning and
enthusiasm. IT is significant in enabling KM but it occupies a
secondary role because it serves as passive infrastructure.
However, effective KM practices could be achieved by utilising
the latest in IT in order to capture, create, store, transfer, share,
retrieve maintain and update knowledge. IT was acknowledged
as one of the core pillars of KM as indicated from the research by
Agus and Suhadak (2013). An intranet platform could also
enhance the interaction of individual, group, organizational, and
inter-organizational knowledge. The already available modern
technology at hotel is a capability especially if it is also used to
incorporate and further KM practices. The interactive nature of
knowledge sharing required a culture of free-flow of information.
The way that knowledge was transferred could be regarded as its
presentation and dissemination, and would be dependent on the
communication infrastructure, information transfer protocols, its
social structure, its knowledge sharing culture and information
dissemination (Agus and Suhadak, 2013). This is where the
expertise of the IT department would become essential.
Organisations that make big investments in IT applications are
likely to acquire the required and relevant technology that will
enhance the organisation’s operations. The findings suggest that
KM processes can be supported by many information
communication technologies that depend on basic IT
infrastructure.
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.419 *** Supported
This result is supported by the findings of Alkhaffaf et al., (2018);
Gold et al. (2001) the better its technology infrastructure,
including computers, intranets, etc. the better the knowledge
management process in a firm. Further, Agus and Suhadak
(2013) found that technology significantly related to KMP.
Organisation wide compatibility of servers and databases need to
be examined so that KM systems can be assessed and used
effectively by employees throughout the organization (Liu and
Deng, 2015). All IT capabilities need to be managed effectively
and maintained through core IS skills and techniques in the
organisation. Companies should try to build and keep their own
core IT skills instead of outsourcing it to other parties, because,
there is a danger in outsourcing that competitors can easily
imitate the IT capability of the firm and challenge the competitive
positions of the firm (Alkhaffaf et al., 2018).
This study provides a critical review of the existing literature on
IT, KM and OP, leading to a detailed overview of relevant studies
from which the research gaps were identified and the model was
developed. It is confirmed that IT infrastructure and KMP
capabilities are the two distinct but related components which
constitute the overall OP. In addition, the model stresses the
importance of IT and KMP as dynamic capabilities in association
with hotel’s performance. This study makes a contribution to the
literature by testing and modifying the measurement model in
Sri Lanka, a developing country. The findings confirm that the
instrument which was adapted from studies grounded in
developed countries is valid and reliable in an emerging, less
developed economy though some items were deleted to improve
the level of model fit. This instrument can be used in future
research and can also be retested or adapted in other contexts
such as other developing countries where the cultural attributes
may be different from those found in the countries in which the
original model was developed. Finally, the application of the two-
step approach in SEM to test the measurement and structural
models is of considerable significance.
Achieving sound performance in business is always one of the
strategic objectives of every business. To remain sustainable and
competitive in the turbulent, dynamic environments of today,
hotels are required to acquire strong dynamic capabilities by
implementing IT and variety of KM activities. Therefore, the most
important concern of senior management must be how to
develop and effectively exploit such IT capabilities to improve
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the hotels’ performance through KM practices. Lack of KM
practices might lead to high costs as a result of lost institutional
memory, knowledge gaps and uninformed decisions. Managing
knowledge in a hotel can leverage efficiency across all its services
to customers through accessing the right information for making
informed decisions and eliminating duplication of efforts.
This study suggests that practicing managers should understand
and develop a holistic approach of implementing an overall KM
strategy which is composed with technical infrastructure. These
correlated and complementary capabilities should not be
considered in isolation but rather should be integrated and
combined to leverage, exploit and sustain a better OP and hotels
need to create, protect and use stores of relevant knowledge
within the work environment in order to improve the financial,
human resource, innovation and marketing performances.
Management should, on the one hand, coordinate and
synchronise IT and knowledge infrastructure capabilities to
facilitate OP. On the other hand, they need to keep in mind that
technological attributes are of the most importance to knowledge
infrastructure capability. In order to improve and strengthen the
performance, hotels need to place more effort into encouraging
people to use IT and share their knowledge as this is one of their
main weaknesses. Although the hotels are equipped with
advanced information technologies that provide a formal
knowledge sharing facility such as intranet, websites, online
forums, electronic document storage, the potential and benefits
of these functions are not fully exploited. This may be due to the
fact that the employees tend to seek knowledge-oriented help via
their social networks (i.e. peers, subordinates, superiors) when
they cannot solve a work problem by themselves.
To solve the aforementioned problem, Sri Lankan hotels should
redesign its organisational structure and move towards a flatter
and more flexible form that facilitates the sharing and transfer of
knowledge across structural boundaries (within and across
branches). A standardised reward system is also needed to
encourage employees to actively involved in a friendly
knowledge sharing environment by interacting with each other,
discussing their work with and asking the opinion of people
within and in other groups, divisions, and exchanging their own
experience in specific situations.
The already available modern technology at hotel is a capability
especially if it is also used to incorporate and further KM
practices. Organisations that make big investments in IT
applications are likely to acquire the required and relevant
technology that will enhance the organisation’s operations. The
findings of suggest that KM processes can be supported by many
information communication technologies that depend on basic IT
infrastructure.
Future research could investigate each of the individual
knowledge capabilities included in the model by combining both
quantitative and qualitative research methods to develop a
deeper insight into each factor and provide richer and more
accurate data in a specific context. For example, while technology
is confirmed as the most important dimension of KM
infrastructure capability in this study, future research could use
case study methodology to explain in detail how and why
technology affects KM process capability and organizational
performance. Future research may wish to better explore
interrelationships amongst the knowledge process constructs
and focus on the role of KM infrastructure capability and KM
process capability in small hotels in Sri Lanka. The hospitality
industry in Sri Lanka is dominated by small independent
businesses that are owner-managed. Further understanding how
KM infrastructure and knowledge process could be deployed to
improve organizational performance in a small hotel would have
high relevance in Sri Lanka.
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This study opens opportunities for future research due to the
complexity and limited resources of businesses in today’s
dynamic landscape. It would be appropriate if the model was
further explored to determine if there is an optimal level of
capabilities so that management can employ available resources
and an optimal combination of different factors to develop a
proactive approach for designing long-term strategies.
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