Effects of market orientation, service innovation and knowledge management capabilities on organizational performance of hotels in Melaka, Malaysia

The occurrence of the COVID-19 pandemic resulted in a great deficiency in Malaysia’s economic growth and business performance. It is crucial to research on how dynamic capabilities affect the hotel’s business given how they have been striving during the pandemic phase. Objectives of this study is to identify the level of three Dynamic Capabilities (DCs) dimensions, Market Orientation, Service Innovation, and Knowledge Management towards Organizational Performance to determine the relationship between respected variables of Dynamic Capabilities (DCs) dimensions, and the factors that influence the organizational performance determinants. Quantitative approach used in this study with 86 respondents from 65 hotels which are a hotels member of Malaysian Association of Hotels (MAH) in Melaka. Data collected through an online survey. Method to analyze data are descriptive, correlation, and multiple linear regression using IBM SPSS Statistics Version 25. Instruments adopted from previous scholars through validated questionnaires have been executed. The findings of the research revealed that the relationship between Market Orientation and Service Innovation was moderately positive and highly statistically significant (r=.458, p=<.001). In addition, Service Innovation and Knowledge Management were moderately positive and statistically significant for the relationship between (r=.638, p=<.001). By comparison, the relationship between Knowledge Management and Market Orientation was relatively low positive and statistically significant (r=.346, p=<.001). Market Orientation and Knowledge management dimensions were revealed to be the strong factors that influenced the organizational performance of the hotels in Melaka. Taking everything into account, this research has filled the gaps in theory and the body of knowledge specifically exploring and exploiting the new dynamic capabilities that would help to unlock the potential of the internal or external resources of the hotel’s organization. Furthermore, the DCs theoretical framework developed in this research conveys that the study's findings were supported by the analysis, and it can be applied to future investigations in different business settings

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