Abstract
Drawing from knowledge management theory, this study examines the relationships between employee's propensity to trust, organic organizational structure, knowledge sharing behavior, and service innovation in a multivariate nexus in restaurants. Data from 180 restaurants with a total of 453 employees were used to test the research hypotheses via partial least square structural equation modelling. As expected, the results of the empirical analysis revealed that propensity to trust is positively related to knowledge sharing behavior, organic organizational structure and service innovation; and knowledge sharing behavior is positively related to organic organizational structure and service innovation. Further, this study established that both knowledge sharing behavior and organic organizational structure serially mediates the positive effect of propensity to trust on service innovation. The result of importance-performance analysis highlights propensity to trust as the highest important predictor of service innovation while knowledge sharing is the best performance factor for service innovation in restaurants.
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