How team knowledge sharing drives employee service innovation in luxury hotels: A cross-level model

Service innovation is a key source of competitive advantage in luxury hospitality, yet little is known about how team-level knowledge processes shape employee service innovation performance (ESIP). Drawing on the knowledge-based view and dynamic capabilities theory, this study tests a cross-level model using two-wave data from 422 employees nested within 60 teams across 33 five-star hotels in China. Multilevel structural equation modeling shows that team knowledge sharing (KS) is positively associated with knowledge orchestration capability (KOC), which in turn predicts ESIP. KOC mediates the cross-level relationship between KS and ESIP. Absorptive capacity (AC) further moderates the KS–KOC relationship in an inverted U shape: the positive effect of KS strengthens from low to moderate AC but weakens at high AC. These findings show that the innovation value of team knowledge sharing depends on effective knowledge orchestration and balanced absorptive capacity.