Literature suggests that knowledge is one of the main resources of innovative activity. Even more important than the existing knowledge in a firm, is its capacity to renovate its knowledge resources in order to adapt them to changing environment, that is to say, to develop dynamic capabilities. However, empirical research on variables that support such capabilities is scarce. Likewise, very little is known regarding the influence of these dynamic capabilities on organizational performance. Furthermore, empirical studies have analysed these topics mainly in the manufacturing sector and research is particularly rare regarding the hospitality industry. In order to study these matters, this paper develops and tests a comprehensive model to analyse the multiple and simultaneous relationships among organizational knowledge, dynamic capabilities and innovation in the accommodation sector. Results show that knowledge and knowledge-based processes play an outstanding role to foster innovation in the hotel firms.
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