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Internal knowledge transfer is crucial for firms to improve their employees’ abilities and improve their work performance. However, there is still a gap in the knowledge management field regarding whether internal knowledge transfer can leverage employee personality traits and service performance in service-oriented organizations. To address this gap, this study aims to validate a multilevel model of the mediating (i.e. internal knowledge transfer as a mediator) and moderating (i.e. task interdependence as a moderator) mechanisms underlying personality traits and employee service performance.

Multilevel structural equation modeling was applied for model validation using an original data set from 45 team leaders and 333 employees working in Chinese hotels.

Internal knowledge transfer mediated the link between extraversion and employee service performance and the link between openness to experience and employee service performance. Task interdependence played a moderating role that strengthened both the impacts of extraversion and openness to experience on internal knowledge transfer.

Through the use of an original data set, this study advances the knowledge management discipline by investigating the mediating impact of internal knowledge transfer between personality traits and employee service performance and revealing the moderating impact of task interdependence that underlies the links between personality traits and internal knowledge transfer.