promoting knowledge transfer in the global hospitality

Promoting Knowledge Transfer in the Global Hospitality Industry

Promoting Knowledge Transfer in the Global Hospitality IndustryFrom the Viewpoint of Service Operator in the Host Country

MURASE Yoshiki

AbstractThis study aims to identify factors promoting or obstructing tacit knowledge transfer from the viewpoint of

recipient in the hospitality industry. Firstly, we surveyed previous studies related to business administration, especially hospitality management,

and developed a research analysis framework related to service employees. Studies of knowledge transfer in the hospitality industry have not been found for years. Some studies were focused on domestic markets or have not been conducted with empirical and scientifi c approaches. Besides, service employees must transfer the services handled by their tasks, invisible knowledge, and experience, across borders. We examine variables that promote the transfer of tacit knowledge based on HRM from the recipient perspective. Based on previous research, this study focuses on employee ability and motivation in the absorptive capacity. Variables having a positive or negative correlation with both factors are considered. As a result, we derived fi ve hypotheses related to services in the hospitality industry.

Secondly, we investigated cases where the tacit knowledge for service is formalized to be transferred globally in hotel operations. Here, JAL Hotel’s Origin8, a classic example of a global hotel chain, was considered as a case study. Global hotel chains need to develop a common management philosophy and code of conduct and transfer them in ways acceptable to local service staff. In this context, multinational staff members announce at international conferences that actions based on a common business philosophy lead to signifi cant performances. Besides, information on their strong performance is published in the booklet “The origin8 story” for new employees. It has been translated into Japanese, English, and Chinese, and updated on their website as “Good Job” for the service staff to browse anytime.

The challenges for future study are to refi ne the fi ve hypotheses and verify the consistency between this case study and hospitality management theory.Keywords: Hospitality Industry, Tacit Knowledge Transfer, Absorptive Capacity, Strength/Weak Tie, Competence-Based Trust

MURASE Yoshiki

. Introduction

The globalization of the hospitality industry is expected to accelerate in the st century, especially in the s. Integrating customer service and maintaining service quality in global markets is an especially important factor in customer satisfaction with global hotel chain.

When hotel chains expand overseas, headquarters need to develop local employee skills. In other words, global hotel chains need to transfer knowledge and information to local staff. In the case of hotel chains, local staff have tacit knowledge and provide intangible service to their customers.

However, there has been little research on promoting tacit knowledge transfer across borders in the hotel industry.

Therefore, this research aims to achieve the following two objectives.

Firstly, this study examines the hypotheses of factors that have a positive or negative effect on tacit knowledge transfer in the view of recipient as a service operator.

Secondly, using case studies, it verifies the consistency between theory and practice regarding tacit knowledge transfer in the hospitality industry.

. Concept of Tacit Knowledge Transfer in the Hospitality Industry.

It is vital for the hospitality industry to create knowledge and share information as a global strategy. Utilizing expertise and knowledge in the organization creates new value and innovation, enhancing individual performance.

Ultimately, the effectiveness and efficiency of the organization could be achieved (Argote, ; Grant,

).The first issue of knowledge management in

business administration was the SECI model proposed by Nonaka.

Nonaka and Takeuchi ( ) categorized knowledge into tacit and explicit knowledge; both are reciprocal and complementary. The process of knowledge creation is shown in fi gure .

There are four main factors in the SECI model, socialization, externalization, combination, and

internalization (Nonaka et al. ).

Figure1. The SECI model (Nonaka & Takeuchi, 1995)

Socialization is the process of transferring knowledge from existing tacit knowledge to new tacit knowledge. In the hospitality industry, socialization is to share the experience of specialized services with new employees.

Externalization is the transfer of knowledge from tacit to explicit knowledge. The process is to transform individual knowledge into social knowledge that can be shared with the organization.

Combination is the process of transferring knowledge from existing explicit knowledge to new explicit knowledge; for example, standardized services are changed to meet specifi c customer needs.

Internalization is the opposite of externalization, a process that transforms explicit knowledge into tacit knowledge. In the hospitality industry, services that meet personal needs are important, and all services cannot be customized. Therefore, the transfer of tacit knowledge is important for service staff.

Knowledge transfer in the hospitality industry has not received much attention in the scientifi c literature (Hallin & Marnburg, ; Shaw & Williams, ).

In recent years, there has been growing interest in knowledge transfer and its implications in the hospitality industry (Hu, Horng & Sun, ; Kim & Hance, ). However, some studies focus on knowledge transfer in the domestic market. Here, a conceptual model o f knowledge transfer in international hotel joint ventures is proposed (Magnini, ). However, this model has not been conducted with an empirical approach. Other studies focus on global knowledge sharing in specifi c countries (Cerviño & Bonache, ; Yang, )


Figure2. Factors related to promoting knowledge transfer

Tacit

Tacit

Tacit


The Hospitality industry provides intangible services to customers, and tacit knowledge transfer is an important management issue (Cooper, ). International hospitality fi rms have reorganized the significance of knowledge-based resources in organizational competitiveness in global expansions (Ramón Rodríguez, ).

The study focuses on tacit knowledge in the service sector and locates factors promoting it.

Early research identified the factors involved in promoting knowledge transfer.


The transfer of tacit knowledge is expensive, and strong ties between organizational dyads create motivation to support recipients, thus positively influencing promotion of tacit knowledge transfer (Reagans & McEvily, ).

Ts a i a n d G h o s h a l ( ) i d e n t i f i e d t h a t trustworthiness is positively associated with social interaction.

Szulanski ( ) highlights that the lack of trustworthiness delays knowledge transfer.

Levin and Cross ( ) found that the recipient’s competence and trust in the source promote knowledge transfer.

Therefore, the factors associated with promoting knowledge transfer have been identified. Some research has tried to integrate these factors in recent years.

The factors promoting knowledge transfer are trustworthiness of the source, absorptive capacity of the recipient, and the relationship between source and recipient, in addition to the characteristics of knowledge. (Szulanski, ).

Tacit knowledge transfer takes longer than explicit and corded knowledge transfer. A strong relationship between source and recipient positively influences complex tacit knowledge transfer (Centola & Macy,

).

Wang, Tong, and Koh ( ) showed the signifi cance of headquarters’ willingness to transfer knowledge and the Chinese subsidiary’s intent to acquire knowledge.

Yang ( ) highlights that the attitudes of the source and recipient to share knowledge and learn were linked moderately to knowledge transfer in the international hotels in Taiwan.

Levin and Cross ( ) adopted the perceived receipt of useful knowledge as a dependent variable and identified the relationship between trust and promoting knowledge transfer. They highlight that strong ties influence trust between source and recipient. High reliability influences the perceived receipt of useful knowledge. Trust is divided into benevolence trust: the degree of favor to the recipient, and competence-based trust: ability of the source. The latter was found to be vital for tacit knowledge exchange.

According to Chen and Chang ( ), the absorptive capacity of organizations with low specialization increases as the level of tacit knowledge increases.

On the other hand, in organizations with high levels of specialization, there is no signifi cant change.

Therefore, in high tacit knowledge organizations with low levels of specialization, absorptive capacity is higher compared to organizations with high levels of specialization.

Other perspectives on promoting knowledge transfer influence the quality of knowledge and the amount of information.

Explicit and Tacit knowledge are transferred to new units incorporated by the international hospitality industry, but different knowledge demands different transfer approaches and techniques (Cooper, ).

For instance, explicit knowledge need not be linked to a specifi c context to have meaning (Zack, ).

However, skills of tacit knowledge result from learning service operations. Thus, the mechanism of knowledge transfer in the organization, varied in the richness of information, are related to the learning ability of communication skills (Daft & Lengel, ).

Cultural compatibility in organizations is another perspective, recommended by Kedia and Bhagat ( ).

According to Yang and Wan ( ), a local culture that supports knowledge acquisition, sharing, and



MURASE Yoshiki

storing is considered positive in the hospitality industry.

However, Yang ( ) demonstrated empirically that a collaborative culture positively infl uences the effectiveness of knowledge sharing in international hotels in Taiwan.

Therefore, the analysis framework of tacit knowledge transfer is as shown in fi gure . Although research has been conducted to fi nd factors promoting tacit knowledge transfer, few studies have integrated them.

Specifically, the factors necessary for promoting tacit knowledge transfer are trustworthiness at source, recipient’s absorbing capacity, and the relationship between source and recipient. These factors are integrated into the proposed model.

Future research needs to use these integrated models as service staff in the hospitality industry will be an issue in the future.

As we mentioned introduction, this study especially focuses on the recipient as a service operation. There are two main reasons. Firstly, service staff behavior af fects their customer sat is fact ion through communication directly. For promoting knowledge transfer to local chains, it is vital to develop staff’s ability and increasing motivation. Secondly, The main knowledge of hotel industry is intangible service that affects promoting tacit knowledge transfer. It is specifi c factors that is different from other industries.

Therefore, next chapter is to examine some factors that affect the ability and motivation of service staff from the perspective of HRM.

Figure3. Analysis framework of tacit knowledge transfer from the view point of recipientsFigure3. Analysis framework of tacit knowledge transfer from the view point of recipients

H1: Service staff ’s job satisfaction positively influences promoting tacit knowledge transfer. H2: Fair performance-based operation under the universal personnel system positively influences promoting tacit knowledge transfer.

Promoting Tacit Knowledge Transfer from recipient as a service operator.

Information received by the recipient of knowledge transfer, i.e., the service staff, helps in offering intangible service to customers in the hospitality industry. Generally, as shown in fi gure , the factors that is positively influenced to promote tacit knowledge transfer is related the personnel system.

To elucidate the mechanism of absorptive capacity, Minbaeva et al. ( ) conceptualized recipient capacity as employee abilities and motivation. They empirically clarified the relationship between recipient capacity and the personnel system, i.e., training, competence or performance appraisal, merit-based promotion, performance-based compensation,

and internal communication from an HRM point of view.

Therefore, the personnel system, excluding the merit-based promotion, showed a positive correlation in employee ability or employee motivation.

Murase ( ) presented four hypotheses to develop a tacit knowledge transfer model for service employees. In this study, we added and modifi ed the model considering the specialty of the hospitality industry.

3-1. Relationship between Fair Performance-Based Operation and Promoting Tacit Knowledge Transfer.

Osterloh and Frey ( ) stated that the transfer of tacit knowledge is inappropriate for local staff, i.e., rewarding outcomes, or extrinsic motivation because


it is diffi cult to measure outcomes.Additionally, studies found that a mechanism that

links performance and reward reduces intrinsic motivation and is unsuitable for tacit knowledge transfer (Osterloh & Frey, ).

However, Du Plessis et al. ( ) highlight the r e l a t i o n s h i p b e t w e e n j o b s a t i s f a c t i o n a n d organizational reward system such as pay, benefits, and promotions in the hospital i ty industry. Particularly, job satisfaction improves when perceived as fair and reasonable, i.e., equal pay for equal work and fairness in promotion.

Most o f g l oba l ho te l cha in have adopted performance-based system, which is an important factor in assessing fairness to evaluate intangible service performance and employee behavior.

Based on the discussions, we firstly set the two research hypothesizes of this study as follows.

H1: Service staff ’s job satisfaction positively influences

promoting tacit knowledge transfer.

H2: Fair performance-based operation under the universal

personnel system positively influences promoting tacit

knowledge transfer.

3-2. Relationship between Leadership with Strong Authority of Headquarter and Promoting Tacit Knowledge Transfer.

In explicit knowledge transfer, headquarters have an information advantage over local subsidiaries if instructions and orders are communicated firmly to local staff. When the instructions are clear, tasks are articulated, and the headquarter leadership works (Hennart, ).

Eisenhard ( ) stated that the task of staff was determined by programmability, specification, and visualization of evaluation. The higher the explicit knowledge level, the easier it is to direct and monitor actions of local subsidiaries, and the more effective the headquarter leadership is.

However, this is ineffective when exceptions occur, or problems arise that must be resolved by local staff.

Additionally, management styles that lack the foresight about pressure, freedom and autonomy of employee behavior, lack creativity (Oldham & Cummings, ).

For effective functioning of headquarters, leaders issuing instructions and orders must have an information advantage over the recipients. The hospitality industry does not deal with specific research and development, therefore need not be headquarter-led.

Based on the above discussion, we set the third research hypothesis of this study as follows.

H3: Leadership with strong authority of headquarter negatively

influences promoting tacit knowledge transfer.

3-3. Relationship between Willingness to Learn and Promoting Tacit Knowledge Transfer.

Contrary to - , Ghoshal and Bartlett ( ) argue that from the perspect ive of organizational socialization, context formation and change can lead to individual initiatives, collaboration, spontaneity in learning, and organizational commitment.

Schlesinger and Zornitsky ( ) found three factors that caused two-thirds of employee satisfaction levels; latitude, and giving authority to serve customers. Figure shows the determinants of employee satisfaction from empirical studies.

To explain figure in detail, latitude refers to the freedom to act as the situation requires. The idea of authority to serve the customer is linked to latitude. Empowerment and employee job satisfaction are related.

On the other hand, the evaluation of empowerment depends on the ability of the recipient. Lower employee performance can lead to abandonment of duties or inappropriate judgment. if the ability is higher, the motivation for learning is increased and the empowerment is highly successful.

Determinants of employee satisfaction Explanatorypower

Latitude given to meet customer 36.6%I have the authority to serve the customer 19.2%I have the knowledge and skills to serve the customer

12.9%

Rewards provided for serving the customer well 7.3%Customer satisfaction is a high priority with the director/manager

4.2%

Production requirements are reasonably balanced with serving the customer

3.1%

Supervision overall is satisfactory 2.8%Underwriting training is satisfactory 2.1%13 other determinants 11.8%TOTAL 100%

Figure4. Sources of employee satisfactionSource: Schlesinger and Zornitsky (1991)

MURASE Yoshiki

As Minbaeva et al. ( ) highlighted that the ability of recipient positively influences promoting knowledge transfer. Employees with high ability may be promoted willingness to learn. As a result, it is expected that the absorption capacity of service staff may be enhanced and knowledge transfer may be promoted.

Based on this discussion, we set the forth research hypothesis of this study as follows.

H4: The recipients’ willingness to learn positively influences

promoting tacit knowledge transfer.

3-4. Relationship between the Trustworthiness of Participants and Promoting Tacit Knowledge Transfer.

By building trust among participants, privileged information acquired by individuals can be shared with the organization (Scott & Bruce, ), and new knowledge can be created (Schein, ).

Chakravarthy and Lorange ( ) argued that developing trust between headquarters and local subsidiaries is likely to enable sharing the local country’s knowledge and resources positively with the entire company.

The task of service in the hospitality industry generally involves teamwork and requires specialized knowledge. Serve staff needs to develop specific ability and great human relationship with whole members.

Levin and Cross ( ) stated that, in addition to the strength of participants’ ties, the ability of the source, from the perspective of the recipient, is closely related to the transfer of tacit knowledge.

The main point of their research is to classify t rus tworth iness in to benevo lent t rus t and competence-based trust. This highlights that the benevolent trust from the source has not affected the transfer of tacit knowledge. However, competence-based trust had a major highly impact on tacit knowledge transfer.

Since customer service is a professional and skilled work, competence-based trust has an important role regardless of strength tie. The tie strength can be a function of work interdependence beyond the voluntary control of the individual.

Even if the tying strength is weaker, when the competence-based trust is growing each other, the

transfer of tacit knowledge goes well smoothly.Based on the above discussion, we set the fifth

research hypotheses of this study as follows.

H5: The competence-based trust more than benevolence trust

influences promoting tacit knowledge transfer in regardless of

tie strength.

The variables that influence promoting tacit knowledge transfer of service staff in the hospitality industry from the perspective of recipients are shown in Figure .

Figure5. Analysis framework for promoting tacit knowledge transfer of service staff in the hospitality industry from the perspective of recipients

. Case Study

The Case of origin Initiatives at JAL Hotel Chains

Chapters and proposed a framework for research analysis and suggested five hypotheses for promoting tacit knowledge transfer of services in the hospitality industry.

In addition to transferring tacit knowledge from headquarter to local hotel chains, attempts have been made to convert tacit knowledge into explicit knowledge.

This chapter discusses the JAL Hotel’s Origin initiatives to transfer tacit knowledge effectively.

Jal Hotel has branches overseas, including Okura Hotels & Resorts (as of March , ). The company has been working since to implement Japan’s fi nely-grained services overseas.

Recently, they have adopted local Chinese, Vietnamese, and the Pacific Rim employees to understand and practice Japanese management philosophy and guidelines. They presented eight perspect ives (smile , sensibi l i ty, enjoyment , cooperation, information, inspection, hygiene, safety)

H5: The competence-based trust more than benevolence trust influences promoting tacit knowledge transfer in regardless of tie strength.

g


Figure6. Origin8 (Okura Nikko Hotel Management Co., Ltd.) Source: SANNOU research institute report


to implement Japanese services abroad, and called it Origin .

Figure6. Origin8(Okura Nikko Hotel Management Co., Ltd.)Source: SANNOU research institute report

In this initiative, all employees, including those overseas, are aware of the eight viewpoints and exhibit ingenuity in their work to increase customer satisfaction.

The aim was to share this information globally, to be used in hotel chains. Therefore, information on each hotel’s efforts is shared through booklets and international conferences.

Based on these eight viewpoints, it is standard for individual employees to make independent decisions and act according to various situations.

A ccording to the S ANNOU research institute report, at hotels in the Pacif ic Rim area, to understand the universal action guidelines, the lyrics of famous pop songs, popular among locals, are changed based on the contents of the action guidelines or skits are performed.

Such initiatives are aimed at increasing employee interest in the code of conduct and improved communication among employees across borders.

Additionally, the report exposed initial concerns about local countries’ willingness to disclose information, however, their overwhelming willingness to share was identifi ed. For instance, China shows a higher willingness to share information than Japan, where its headquarters is located. Hence, it is important to achieve global standards by adopting a common management philosophy and code of conduct worldwide.

The means for soaking in them need to respect the culture and values whole hotel chains.

Responses, based on the philosophy and action guidelines, and their resultant benefi ts for local staff, have been carefully explained.

For example, a training session for hotel employees in the Chinese area analyzes how their business improvements and the development of new products or services, based on the management philosophy and action guidelines, positively affected the results of the global customer satisfaction survey data. The report is regularly compiled as follows.

Ci rcle Activity Case Study Handbook(Okura Nikko Hotel Management Co., Ltd.)Source: SANNOU research institute report

Additionally, to put Origin ’s efforts into daily practice, information is shared by filling in Good job! cards for successful cases of hotel employees based on the eight viewpoints. They are displayed on the backyard wall. The company formalizes the best practices of individuals and the organization, as shown in the following photo, and shares them domestically and internationally for other staff members to learn.

New employees are made to understand the eight action guidelines using cartoons and characters, a booklet called The origin story was produced and translated into Japanese, English, and Chinese, and distributed oversees to all the hotel chains.

The Good job! Review System, showcasing cases of excellent service, is shared with domestic and overseas employees. Each hotel operates an MVP award system that recognizes the best examples on a monthly or yearly basis.

According to the SANNOU research institute report, there were initial concerns about the successful operation of the project, especially with

H5: The competence-based trust more than benevolence trust influences promoting tacit knowledge transfer in regardless of tie strength.


Figure6. Origin8 (Okura Nikko Hotel Management Co., Ltd.) Source: SANNOU research institute report

Circle Activity Case Study Handbook

(Okura Nikko Hotel Management Co., Ltd.) Source: SANNOU research institute report

The Origin8 Story


The Origin8 Story (Okura Nikko Hotel Management Co., Ltd.) Source: SANNOU research institute report

Minori Web (One of the cases)


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Chinese staff, considered to be individualistic. However, many practical examples are nominated for excellence regularly.

The company also operated an MVP award system at each hotel, and shared instances of excellence throughout the chain through a dedicated, regularly updated website, (called Mi nori Web).

The Origin8 Story(Okura Nikko Hotel Management Co., Ltd.)Source: SANNOU research institute report

The Origin8 Story (Okura Nikko Hotel Management Co., Ltd.)Source: SANNOU research institute report

Minori Web (One of the cases)(Okura Nikko Hotel Management Co., Ltd.)Source: SANNOU research institute report

The updated site is available to all the hotel staff.

The hotel industry, having high attrition, benefits from these initiatives by effectively minimizing the loss of know-how when the company loses talent.

Besides, circle activities, common in Japanese companies, have been introduced in many hotels overseas.

According to the SANNOU research institute report, in many countries and regions overseas, the roles of managers and staff are clearly defi ned, and it is the role of managers to identify and solve problems.

Thus, the staff members firmly believe that they should follow the manager’s instructions, considering that they do not reflect on their work to identify problems and decide on solutions proactively.

. Conclusion

The study aims to derive a hypotheses about the transfer of service staff knowledge in the hospitality industry, and particularly to extract variables that positively or negatively infl uence promoting the tacit knowledge transfer.

In Chapter , we examined factors that promote the transfer of tacit knowledge from the recipients’ viewpoint. The recipients’ absorptive capacity has a positive correlation with the promotion of tacit knowledge transfer.

Yang( )stated that individual attitudes to share knowledge and learning were linked to knowledge transfer in international tourist hotels in Taiwan.

Furthermore, according to Minbaeva ( ), the absolute capacity of recipients is classified into employee abilities and motivation. The study considered the factors influencing service employees in the hospitality industry from the perspective of HRM.

As a result, we proposed fi ve hypotheses that have a positive or negative effect on the transfer of tacit knowledge, as shown in Figure .

This model, a framework from the perspective of HRM, has limitations.

It could not take account for the quality of knowledge, cultural background, and geographical characteristics of employees. However, this study contributes to the task of HRM managers in the hospitality industry.

Secondly, as a case study, we introduced JAL Hotels’

Circle Activity Case Study Handbook (Okura Nikko Hotel Management Co., Ltd.) Source: SANNOU research institute report

The Origin8 Story






The Origin8 Story






The Origin8 Story






Origin initiatives to examine the transfer of tacit knowledge overseas in hotel operations.

These efforts are considered to be excellent examples of the transfer of tacit knowledge. The study identifies five points to promote cross-border knowledge transfer. These are communication opportunities, clarification of the significance of learning business philosophy and codes of conduct, ideas for accumulating know-how, promotion of information sharing using translation in local languages, and promo tion of information sharing using databases.

The essence of knowledge transfer is not that headquarters or developed countries unilaterally transfer to local subsidiaries or developing countries.

At maturity during the overseas expansion, we should be promoted reverse knowledge transfer from local subsidiaries. The study aims to establish globally standardized services through interaction with staff of the entire chain.

Acknowledgement

This research was supported by JSPS KAKENHI: Grants-in-Aid for Scientific Research(C) Grant Number JP K , - . (Title: The elucidation of structure and promotional factors for knowledge transfer across the border in the hospitality industry”)

We appreciated critical review comments from two anonymous reviewers.

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promoting knowledge transfer in the global hospitality

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