Abstract

Purpose: This research examined how knowledge management affects innovation capacity and distribution channel performance in Vietnam's hospitality industry. While knowledge management has been extensively studied, its dual effect on innovation and distribution channels remains underexplored in emerging markets' hospitality sector, particularly considering the unique cultural context of relationship-based business practices in Vietnam. Research design, data, and methodology: Using a quantitative approach, data were collected from 178 senior executives of hospitality through a structured questionnaire. The study employed established scales adapted from prior research, measuring all items using a five-point Likert scale. Smart-PLS analysis revealed that all three dimensions of knowledge management—acquisition, dissemination, and utilization—positively influenced innovation capacity and distribution channel performance. Results: Knowledge utilization demonstrated the most potent effect on innovation capacity, while innovation capacity showed the most substantial impact on distribution channel performance. Mediation analysis revealed that innovation capacity partially mediates the relationship between knowledge management dimensions and distribution performance, with the most substantial indirect effect through knowledge utilization. Conclusions: The findings contributed to both theory and practice by establishing the crucial role of knowledge management in enhancing operational performance through innovation capacity in the hospitality sector while highlighting the importance of cultural factors in knowledge management effectiveness within Vietnam's unique business environment.