From Knowledge to Performance: The Role of Innovativeness in the Moroccan Hospitality Sector

Background: Morocco's tourism sector is crucial to the nation's economy, but it is being influenced by technological transformation, evolving consumer behaviour, and the need for innovation. As tourism continues to move towards digitalisation and personalisation, knowledge management (KM) is necessary to enhance service quality, efficiency, and competitiveness. Objectives: This research examines the effect of Knowledge Management (KM) on firm performance in the hospitality sector in Morocco. The study also examined the mediating role of innovativeness. Methodology: A structured questionnaire was administered to a sample of 220 respondents across Moroccan hospitality firms. The collected data were analysed using Partial Least Squares Structural Equation Modelling (PLS-SEM) via SmartPLS. The analysis specifically tested the direct relationship between Knowledge Management and firm performance, the relationship between knowledge management and innovativeness, and the mediating effect of innovativeness on the link between knowledge management and performance. Results: There is a significant positive impact of knowledge management on both firm performance and innovativeness. knowledge management also significantly leads to firm performance, indicating further the relevance of innovativeness as a competitive differentiator. However, from a mediating perspective, innovativeness does not have any significant influence on the relationship between knowledge management and firm performance, which may be explained by other organisational factors such as digital infrastructure and corporate culture. Conclusion: The study has emphasised the integration of knowledge management and innovation strategies for business performance. Growth in Moroccan hospitality firms could be sustained by effectively leveraging knowledge resources while fostering an innovation-friendly environment. Unique Contribution: The study extends the understanding of knowledge management and innovation in the Moroccan hospitality sector by providing empirical evidence on their impact on firms' performance in a less explored emerging market. Key Recommendations: To improve knowledge management and innovativeness capabilities, establishments should invest in digital tools, employee training, and enhancing organisational culture. Policymakers should support sector-wide digital transformation initiatives to enhance the competitiveness of the hospitality industry.