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Purpose

The purpose of this study is to offer a theoretical and practical explanation for the nature and reasons for inter-organizational knowledge sharing across an informal clique of competing five-star hotels in the Saudi Arabian religious tourism and hospitality industry.

Design/methodology/approach

The methodology is an adapted form of the grounded theory approach deploying a four-stage research design using qualitative interviews with key players in the industry to inform the analysis of the knowledge sharing approaches.

Findings

The findings illustrate the features of the knowledge sharing approaches across the five-star hotels studied. In particular, the findings highlight the existence of a cooperative-competitive tension in the relationships and knowledge sharing between the hotels. This illustrates the existence of a tacit strategy that cooperation can lead to long-term benefits for the competitor hotels.

Originality/value

The study is unique in its focus on the cooperative-competitive tension of five-star hotels in the Saudi Arabian religious tourism and hospitality industry and on this influence on the inter-organizational knowledge sharing across hotels within an oligopolistic market structure. The study also has value in using elements of oligopoly theory and of game theory, particularly, the prisoner’s dilemma, in explaining how inter-organizational knowledge sharing occurs within this market context.

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