This paper aims to explore the psychological process by which front-line employees (FLEs) in hospitality firms make decisions on hiding knowledge.

A qualitative methodology was used, with triangulated data collection from six different types of hospitality firms. By using the thematic analysis approach, a conceptual framework consisting of seven main themes was constructed to reflect the replicable logic of an individual’s knowledge exchange decision-making in various situations.

This study proposes a theoretical framework describing how hotel employees evaluate the cost and benefit of knowledge exchange implicitly. Using this framework, this paper illustrates the strategies that FLEs use to make a bounded-rational decision on knowledge exchange in situations characterized by time constraints and limited information.

Hotel managers can use the psychological process presented in this paper to better understand how FLEs make knowledge-hiding decisions in the workplace. Furthermore, specific measures are suggested to reduce FLEs’ knowledge-hiding behaviors in each stage of their knowledge exchange decision process.

This paper uncovers the psychological process of individuals’ decision-making regarding hiding knowledge from others in the hotel context, thus increasing the understanding of the rationale of FLEs’ knowledge hiding behaviors from the perspective of bounded-rational decision theory.

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