Turning Knowledge into Innovation: The Systemic Role of Knowledge Management Capability, Intellectual Capital, and Knowledge Utilization

In the dynamic and service-intensive context of the tourism and hospitality industry, organizational innovation performance (OIP) is a critical determinant of competitiveness. This study investigates the systemic role of knowledge management capability (KMC) in driving OIP, with a focus on the mediating effects of intellectual capital (IC) and knowledge utilization (KU). Drawing on Dynamic Capabilities Theory and the Knowledge-Based View, KMC is conceptualized as a higher-order capability that facilitates the accumulation, coordination, and application of knowledge resources, thereby shaping both organizational knowledge assets and their practical enactment. Data were collected from senior managers across five-star hotels in Greater Cairo, Egypt, and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). Results indicate that KMC positively influences OIP directly and indirectly through the development of IC and the effective utilization of knowledge. Both IC and KU are found to mediate the relationship between KMC and innovation performance, highlighting the importance of transforming knowledge resources into actionable and value-creating organizational capabilities. The study advances theoretical understanding by elucidating the systemic mechanisms linking knowledge management, intellectual capital, and knowledge utilization to innovation outcomes, and provides practical insights for hospitality managers seeking to leverage knowledge-driven strategies to enhance competitiveness and service excellence.