INVESTIGATING KNOWLEDGE TRANSFER MECHANISM IN FIVE STAR HOTELS

Abstract: Current theorization cannot conclusively explain how knowledge is used to improve performance and organizational competitiveness. The study aimed to examine the relationship among trust, knowledge transfer, and performance, and to explain the mechanism underlying such association. The study adopted a quantitative design with a population comprised 63 five-star hotels in Bali Province, Indonesia. The sampling technique employed was proportional random sampling resulting in 54-unit, and the number of respondents was 216 employees. The data were analyzed with smart pls 3.0 software. The results revealed that trust had a significant effect on knowledge transfer and performance. It was also found that knowledge transfer played an essential role as a mediating variable. Theoretical implications pertain to the position of knowledge transfer as a mediating path of trust role to improve job performance, while the practical implications concern the importance of building trust, knowledge transfer mechanism, and the impact on performance. Research limitations are discussed in the paper. Keywords: trust; knowledge transfer; performance; mediation