IMPACT OF IT INFRASTRUCTURE AND KNOWLEDGE MANAGEMENT CAPABILITY ON ORGANISATIONAL PERFORMANCE OF STAR HOTELS IN SRI LANKA

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.