The Effect of Knowledge Sharing Practices on Employees’ Knowledge and Capabilities in the Hotel Industry in Sri Lanka

The hotel industry is a service-intensive industry in which human resources hold a major place. Employees’ knowledge and capabilities are considered the most critical factors in such an industry. Organizations face negative experiences such as costly information storage systems because employees are reluctant to share their skills, knowledge, and experiences with other employees. Knowledge sharing can be considered an ideal model for conducting operations effectively in hotels. Because of the importance given in the business world in relation to knowledge sharing, limited studies have been conducted in the context of the effect of knowledge sharing on employees’ knowledge and capabilities. Therefore, researchers have explored the gaps by arguing that knowledge sharing combined with employee motivation enables knowledge and capability within organizations. Thus, the study is based on four objectives: First, it aims to identify the existing level of knowledge sharing practices in the hotel industry. Second, the study explores the relationship among knowledge sharing, motivation, and employees’ knowledge and capabilities. Third, it reveals the impact of knowledge sharing on employees’ knowledge, capabilities, and training. Finally, it examines how motivational factors mediate the relationship between knowledge sharing and employees’ knowledge and capabilities. Survey data were collected from two hundred operational level employees from four- and five-star hotels in Colombo. The study used the survey method and measures adopted from past literature. Further, this study used the multistage sampling technique to collect primary data. Data were analyzed by using descriptive statistics, multiple regressions, the coefficient correlation, the Baron and Kenny mediator assessment and the Sobel test. The results of the study indicate that a positive relationship obtained between (1) knowledge sharing and (2) employees’ knowledge and capabilities. In addition, employee motivation was found to significantly and partially mediate the relationship between (1) knowledge sharing and (2) employees’ knowledge and capability (training and capability). The findings of the study suggest that top-level managers in the hotel industry can improve employees’ knowledge and capabilities by enhancing proper implementation of knowledge sharing practices through stimulating intrinsic and extrinsic motivations.