Increasing competition in the global marketplace demands hotels to develop a competitive advantage by ensuring innovative performing services. The rapid increase in the scope of service providers within various facets of Malaysian tourism and hospitality sector has not only limited the process of innovation performance but also the commitment of the managements’ general practices to manage service innovation. Focusing on the Malaysian hotel industry, the objective of this study is to examine the influence of team culture and knowledge sharing behaviour on service innovation performance. Based on the literature review, team culture and knowledge sharing behaviour are hypothesised to have a significant impact on service innovation performance. Non-probability purposive sampling technique was used to select the sample. Self-administered questionnaires were distributed amongst 327 employees working in luxury hotels within Klang Valley, Malaysia. Data was analysed using partial least squares (PLS) based structural equation modelling (SEM). All the hypothesised relationships are supported and the findings indicate that team culture and knowledge sharing behaviour have a significant effect on the service innovation performance. The hotels need to develop a strong team culture and knowledge sharing behaviour to accelerate the process of service innovation performance while providing the consumers better experiences. Implications, limitations of the study and future research suggestions are also discussed.
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