Sustainable urban tourism success factors and the economic performance of small tourism enterprises

The aim of this study is to introduce the relationship between sustainable urban tourism success factors and the economic performance of small tourism enterprises (STEs). The related data was obtained from 330 STEs business owners/managers in Eskisehir (Turkey). To determine the dimensions Exploratory Factor Analysis was performed and Confirmatory Factor Analysis was used for verifying these dimensions. Structural Equation Modelling was applied in order to introduce the relation which is foreseen. As a result of the analysis, seven dimensions of urban tourism success factors and two dimensions of the economic performance of STEs have been determined and a significant relation was found between them. These findings provide an insight to literature and new directions and suggestions for local governments, regional marketing organizations and business managers on how tourism development and sustainability can be achieved in urban areas.     

The Place Identity - Performance relationship among tourism entrepreneurs: A structural equation modelling analysis

Drawing on the literature on tourism, entrepreneurship, environmental psychology, and corporate philanthropy, this research examines how place identity, entrepreneurial self-efficacy, and support for community influence the entrepreneurial performance of small and medium tourism enterprise (SMTE) owners. Confirmatory Factor Analysis and Structural Equation Modelling are used to analyse the responses from 301 tourism entrepreneurs operating in regional South Australia. The data supports a model suggesting that the place identity of tourism entrepreneurs has a significant, positive effect on entrepreneurial self-efficacy and support for the community. Findings also suggest that the place identity of tourism entrepreneurs has a positive, indirect effect on entrepreneurial performance: a tourism entrepreneur’s sense of identity with the place in which his/her business operates contributes toward entrepreneurial success.     

Critical Success Factors for Business Tourism Destinations

Abstract

Business tourism is a highly lucrative but competitive sector of the tourism industry which has led many destinations to implement strategies and invest in infrastructure and human resource developments. National and regional capital city status gives additional kudos to a destination. This paper presents critical success factors for business tourism destinations developed from four case studies of successful UK business tourism destinations through stakeholder interviews and explores how Cardiff should exploit its national capital city status to support its business tourism offer. The critical success factors for business tourism destinations include: leadership; networking; branding; skills; ambassadors; infrastructure; and bidding. These will inform an action plan to develop and shape Cardiff's business tourism offer and position Cardiff amongst the UK and Europe's major business tourism destinations.     

Destination social capital and innovation in SMEs tourism firms: an empirical analysis in an adverse socio-economic context

Abstract

This study examines the structural relationships between internal and external resources that explain the innovation of small tourism firms in adverse socio-economic contexts. Specifically, it analyzes two internal resources, human and organizational-technological capital, and the valuable intangible resources derived from social interactions between the agents in the destination (other companies, institutions, and community). The research hypotheses are tested by means of structural equation analysis applied to an empirical study of 180 tourism firms located in Isla Margarita (Venezuela). The findings confirm the importance of external resources derived from relationships with destination agents in the innovation behavior of tourism small and medium-sized enterprises (SMEs). While business social capital affects innovative behavior directly, other types of internal intellectual capital mediate the relationship between innovative behavior and institutional and community social capital. It is the first to address the local community’s role in the innovation of tourism SMEs. The importance of integrating firm and destination resources should inform SMEs’ innovation policies in adverse contexts where the scarcity of resources make vulnerable the economic, social and environmental sustainability.     

Entrepreneurial Characteristics,Motives, and Business Challenges: Exploratory Study of Small- and Medium-Sized Hotel Businesses

ABSTRACT

The purpose of this study is to gather information about the determinants and characteristics of the owners/managers of small- and medium-sized hotels (SMSHs) and identify various issues in starting up and operating businesses in the United Arab Emirates. The results of this study reveal that the majority of the owners/managers of SMSHs in the United Arab Emirates are male, young and middle age, and relatively new to the tourism industry. The motivations for the business ventures of the entrepreneurs include wanting to be financially independent, become one’s own boss, involvement in family business and the opportunities of the hotel business. Among the key business challenges highlighted by the owners/managers of SMSHs are stiff competition in the hotel industry, increased operating costs, reduced demand, and lack of skilled employees. Several key strategies have been employed to face these challenges. These include offering competitive pricing, improving the marketing and channels of promotion, enhancing the quality of service and providing superior customer service.     

Towards An Experience Innovation Canvas: A Framework for Measuring Innovation in the Hospitality and Tourism Industry

ABSTRACT

As organizations transition from a service to experience economy, they will need to reimagine their business performance “scorecards” to reflect practices that place the co-created guest experience at the heart of their innovation efforts. This article synthesizes innovation and experience economy literature to depict six theory-based propositions and a framework for measuring innovation in the hospitality and tourism industry. The propositions were investigated in 19 experience firms comprising lodging, dining, attractions, and events in Southern California. Data from executive interviews (n = 19) and follow up manager surveys (n = 202) showed strong support for front of the house innovation focused on guest offerings to enhance interactions, personalization and social spaces and back of the house innovation focused on connecting employees with the firm’s core purpose. Measures of memorable triggers and motivators of emotional value represent promising new frontiers. By identifying the current practices and measures of senior managers faced with leading innovation in their own business units, this study both informs this practice and presents a unique and updated perspective on experience innovation.     

Regional Environment of Destination and the Entrepreneurship of Small Tourism Businesses: A Case Study of Dali and Lijiang of Yunnan Province

Small tourism businesses play vital roles in tourism destinations. However, an understanding of the extent to which the destination where the business is located influences decisions made by tourism entrepreneurs has not received the attention it deserves. Based on 173 questionnaires and 50 interviews in Dali and Lijiang, and using factor analysis, the author explores the effect of regional environmental factors on the entrepreneurship of small tourism firms. Seven factors were derived with a cumulative variance of 66.8% explained. Tourism attractiveness, including the natural and human environment as well as regional economics, drives the macro-location of small tourism firms and is the most important influence factor, followed by information and communication factors. The market potential and accessibility, which are keys to success, are also important factors that entrepreneurs considered. The family background provides support for entrepreneurs. Also, emotional supports among entrepreneurs with shared values, hobbies, and experience are crucial for lifestyle entrepreneurs to start a venture. However, the influence of financial environment, government policy, and labor conditions are not perceived to be significant to the entrepreneurs.     

Climate change in Northern Sweden: intra-regional perceptions of vulnerability among winter-oriented tourism businesses

Climate change is a potential threat to society and business. Although research has noted that the tourism sector may be robust on the macro scale, significant losses at local levels have been suggested. This paper examines Upper Norrland, in Northern Sweden, by measuring the perceptions of winter-oriented tourism entrepreneurs. Their perceptions of potential threats from climate change are assessed, including how entrepreneurs view the future, in terms of climate change impacts and sustainability of the region as a winter-tourism destination. A quantitative survey of entrepreneurs (n = 63) gave responses along geographical and operator dimensions to reveal local differences within the Upper Norrland region, showing the coastland to be perceived as more exposed to change than inland areas. Venue-based businesses see climate change as a higher priority than activity-based, potentially mobile, businesses, regardless of their location. The general perception among businesses is that climate change will not drastically impact the tourism sector over the next 10 years. A basic model for mapping local differences is outlined to stimulate further study of the under-researched intra-regional nuances in climate change and tourism research. A case is made for regional planners to use this tool and to educate local businesses on adaptation techniques.     

Wonderment in tourism land: three tales of innovation

ABSTRACT

The paper uses an unconventional story format to report on three cases of tourism innovation, using the literary genre of nonsense to also contemplate narrative expression in academic research. Case materials principally derive from open in-depth interviews. The analysis highlights the importance of knowledge in innovation, also illuminating an important relationship to entrepreneurial passion. Notably, passionate interest inspires a learning habit that builds enabling stocks of knowledge; these knowledge stocks render the necessary technical knowledge and situational awareness to see and seize innovation opportunity. By using their vast stock of knowledge, entrepreneurs can identify needed resources and know-how and ways to fill in the gaps. In prosaic terms, this ingrained learning habit depicts a story of incremental innovation at personal scale. Use of the literary nonsense genre overtly positions narrative as a rhetorical form, inviting contemplation of alternative forms of scholarly expression. In this respect, novel forms of expression open the way to new insight into social phenomena. Polyvocality enhances our knowledge of the social world.     

Importance and Measurement of Entrepreneurial Quality and Processes in Tourism

ABSTRACT

Small and medium sized enterprises (SMEs) dominate the tourism industry in Europe. In the European Union, 94.4% of the accommodation and food sector has been classified as small businesses employing nine or less employees. In central and southern Europe for example, the average establishment size of hotels is 37 beds in 1998 (Hubertus, 2000, Weiermair and Peters, 2002). Due to the fact that small businesses are characterized by a preponderance of owner manager influence (Gagnon et al., 2000), entrepreneurial processes in tourism should be considered as one of the major fields of tourism research.

The behaviour of the owner manager moulds all factors that are relevant for the service delivery process (service quality, processes, structure, corporate culture, innovation management, etc.). The entrepreneur converts detected opportunities into marketable improvements and innovations and his perception and information processing mechanisms influence his actions.

Given the scant literature on entrepreneurial processes and decision making in tourism (but see Leghorél et al., 2000), the authors have developed an experimental design to form the conceptual foundation of enquiry into entrepreneurial processes. In particular, we postulate entrepreneurial quality to be measured not only by output, but by taking into account the structure, availability and use of information in the respective economic environment (Cooper et al., 1995, Magee, 1998).

While social sciences substantially contribute to entrepreneurial studies, their theoretical constructs are rather conceptional and sometimes difficult to link with economic reality (Swedberg, 2000). In some areas however these studies show considerable deficits. Economic theory for example neglects the psychological aspects of entrepreneurial behaviour. The psychology of entrepreneurs thus requires closer attention.

The entrepreneur's cognitive procedures have an influence on the design of the service delivery process. Psychological aspects of the entrepreneur particularly have an impact on information search and the detection of new opportunities as well as the realization of information and ideas. This paper thus investigates the market-related behaviour of entrepreneurs and the implementation of their ideas. The process of information acquisition is in the middle of attention.

The paper starts with a short overview on the role of cognition and affection in service processes. It is argued that tourism research should not be limited to analyzing entrepreneurs' personality structures but has to focus on the information handling and decision making behaviour of entrepreneurs. The second part hence provides a literature review of entrepreneurial processes, in general, and entrepreneurial behaviour, in particular, with the aim to construct a model of the entrepreneurial process (Koh, 1996, Wall, 2001). Our specific research agenda includes, as a special feature, information search and information usage behaviour of entrepreneurs in tourism as well as perception of and reaction to changes in the respective economic environment. Open research questions can be derived and will be the starting point for the main part of the paper, namely the experimental design. The aim of experimental methods is to exclude as many external variables as possible and thus to gather valid data on entrepreneurial processes and the respective independent variables which influence entrepreneurs' activities and decisions. The authors conclude with recommendations for future tourism research agendas.     

How do senior managers influence experience innovation? Insights from a hospitality marketplace

Pine and Gilmore garnered attention from both academics and practitioners when they introduced the experience economy paradigm (1998). Central to the authors’ work is the notion that experiences are distinct economic offerings – differentiated, co-created, and memorable – requiring continuous innovation to meet the needs of increasingly demanding and savvy consumers. The purpose of this study was to build upon the work of innovation researchers in business by examining innovation in an understudied context; the goal was to provide a back of the house view of innovation in organizations whose main economic offering is an experience. An exploratory sequential mixed methods study was conducted to examine the ways senior managers influence innovation at the business unit level and to test the relationships between specific leadership practices and innovation performance. Findings from executives in four segments of a hospitality marketplace suggest three organizational capacities – Connect, Energize, Refresh – are associated with continuous innovation of memorable experiences.     

Examining tourism SME owners’ place attachment,support for community and business performance: the role of the enlightened self-interest model

This research examines how support for the local community by small tourism businesses influences their enterprise performance, and the extent to which the owners’ place attachment influences the level of support that they provide to the community. Confirmatory factor analysis and structural equation modelling were used to analyse the responses from the owners of 298 small and medium tourism enterprises (SMTEs) operating in regional South Australia. Results of the analysis provide support for the validity of a structural model. The place attachment of tourism business owners has a significant positive effect on their support for the community which in turn has a significant positive effect on enterprise performance. The robustness of the structural model was tested through a series of invariance (equality) tests. Results demonstrate that the causal relationships among place attachment, support for community and enterprise performance hold true (are invariant) irrespective of the gender of the business owner, the size of the business, and/or the length of time the business has been operating. These findings have implications for research scholars in developing more robust tests of model relationships between and across groups, and for tourism policymakers aiming to support the sustainable development of regional tourism destinations.     

Analysis of local economic development (LED) initiated partnership and support services for emerging tourism entrepreneurs in George municipality,Western Cape Province,RSA

The state of partnership and support services provided by the local municipality to the emerging tourism entrepreneurs are keys to the achievement of Local Economic Development (LED) objectives. The tourism industry is seen as one of the key economic sectors that can be used as a strategy to achieve key objectives of LED which are employment creation and poverty alleviation. The tourism industry has grown to become the world's second largest industry over the years. The aim of this study was to analyze Local Economic Development (LED) initiated partnership and support services for emerging tourism entrepreneurs in the George municipality with the objective to determine the impact of the tourism sector in contributing to the achievements of LED objectives. The study was conducted at George municipality of Western Cape Province. The study used both qualitative and quantitative methodology. The data used in the quantitative analysis was collected from 10% of the sample population. Whilst data collected through qualitative methodology was used to explain the outcome of the quantitative method. The test used in analyzing the data was a non-parametric test where the Friedman two-way analysis of variance (ANOVA) was applied. The study found that 47.5% of respondents see the overall support by the municipality as poor while 50% of the respondents receive no support from the municipality. In addition, it was found that the respondents regard the state of partnership as average. The study recommends the exposure of tourism entrepreneur's products and services through marketing and promotion as well as training in basic business management and financial management for the entrepreneurs.     

Mapping the constructs of a business tourist service quality scorecard model

Abstract

The researchers sought to conceptualize models related to Service Quality (SQ), Balanced Scorecard (BSC), Customer Satisfaction (CS), and Customer Retention (CR). These models are evident within the tourism industry, but are not confirmed in business tourism. The empirical testing of a Service Quality Scorecard (SQSC) as a comprehensive SQ model, for explaining Business Tourist (BT) retention is proposed. Data was analyzed through a structural equation modeling procedure, resulting in a business tourist service quality scorecard (BT SQSC) causal model for the testing of SQ in the BT industry. Findings provide implications for business tourism practitioners to encourage business tourism performance.     

Sustainability-oriented Service Innovation: fourteen-year longitudinal case study of a tourist accommodation provider

Abstract

Progressing sustainable tourism requires both an innovative transition from “unsustainable” tourism and innovative research methods to develop theory and concepts for a sustainable tourism. While there are many ad hoc examples of initiatives, there are very few examples of firms systematically recording their medium-term evolutionary progress. This case study of an accommodation provider uses longitudinal data over 14 years, deductive and inductive methods, and comparison with other similar eco-friendly providers, to provide the first exploration of sustainability-oriented innovation by a firm attempting to make transitions. Findings show how important hindsight and insight are for continuous learning, and how broader community sustainability issues influence the owners’ worldviews. Both learning and changing views are required to support innovation. A Sustainability-oriented Service Innovation model is recommended, recognising the characteristics of a service industry where innovation can be an organic process led by humans for humans and consequently more fuzzy in its progress than the clearly defined steps that are suggested by previous research. This model seeks to assist researchers and practitioners to better measure innovative progress of service firms, and develop more relevant strategies to ease transitions towards sustainable business practices.     

Relevance and Quality in Australian Tourism Higher Education

Abstract

Partnerships between educators and industry professionals can facilitate students' tourism career opportunities. Considering this, a mail-out questionnaire was undertaken to assess the attitudes and perceptions of tourism educators (n = 56) and tourism professionals (n = 100) on tourism education issues. Results indicated that one-quarter of professionals believe university tourism majors provide graduates with a competitive advantage and both groups consider tourism/hospitality, marketing and management as important business majors. Competencies in logical thinking, social interaction, tourism knowledge and concepts, and generic skills are also considered important by both groups with specific workplace competencies and professional experience considered relatively less important by educators (p < .05). In conclusion, communication networks jointly facilitatedby academicsand industry are recommended.     

The role of relationship quality in integrated destination marketing

ABSTRACT

This study illustrates the role of the relationship quality perceived by the international public, which is increasingly discussed in public diplomacy research. It leads to the implications for integrated destination marketing of a host country in targeting the international public, where the host country is considered both as a tourism destination and as a place for business and investment. The study proposes a model illustrating the intervention of relationship quality in the way tourism destination image and country image are associated with tourism and business behavioral intentions. Empirical testing shows that image itself cannot assure that the international public would support the host country. Instead, it establishes the critical role of enhancing relationship quality.     

Perception of small tourism enterprises in Lao PDR regarding social sustainability under the influence of social network

This paper uses a generalized structural equation model (GSEM) to examine the relationships between a social network, the perception of social sustainability, and the future business intentions of small tourism enterprises, in the context of a developing country, Lao PDR. The data were derived from 177 such enterprises located in two destinations in 2016. Initiatives in building social networks and the provision of training and employment of local residents are identified as the key determinants of success in social sustainability, while specific attempts to create brands congruent with local culture are also important. Undifferentiated policies, while useful to the business expansion of small tourism enterprises, are less successful in generating local social sustainability.