Antecedents of coopetition in small and medium-sized hospitality firms

Andreas Kallmuenzer,Patrick Salner,Florian J. Zach,Theresa Wachter,Sascha Kraus

doi:10.1016/j.ijhm.2021.103076

Abstract

Coopetition, which is entering cooperation with competitors, lets firms overcome the challenges of uncertain environments and their intense competition and pressure to innovate. The hospitality industry frequently experiences this kind of competition. It is also dominated by family-run small and medium-sized enterprises (SMEs), which are inclined towards cooperation due to their limited size and resources, along with their strong social ties. Investigating hospitality SMEs’ decision-making, this mixed-method study tests the antecedents of coopetition in 171 hospitality SMEs in western Austria. Its findings show that economic benefits and destination networks directly and positively influence coopetition, while family involvement indirectly and positively moderates the effect of environmental conditions and social relationships on coopetition. Information from follow-up interviews with 15 firm managers complements the understanding of these effects. Our findings encourage destinations to establish services helping family firms to coopete.

Highlights

IntroductionInterdependence between hotels, geographical proximity, and a common goal of attracting visitors to a destination are common enablers of cooperation between competitors among hospitality firms, especially for those of small size
Cooperative relationships with other organizations have become an important strategic approach for firms when seeking to overcome challenges such as a turbulent environment or limited resources (Gnyawali & Park, 2009; Power, Di Domenico, & Miller, 2019).Interdependence between hotels, geographical proximity, and a common goal of attracting visitors to a destination are common enablers of cooperation between competitors among hospitality firms, especially for those of small size (Chim-Miki & Batista-Canino, 2017b; DellaCorte & Sciarelli, 2012; Kylänen & Rusko, 2011).Small firms are defined differently by region; they account for a large share of most economies
The survey data was collected via an online questionnaire distributed in western Austria. This region was chosen as the study context because it is an established tourism region dominated by family-run hospitality small and medium-sized enterprises (SMEs) (Peters & Kallmuenzer, 2018; WKO, 2019)

Summary

Introduction

Interdependence between hotels, geographical proximity, and a common goal of attracting visitors to a destination are common enablers of cooperation between competitors among hospitality firms, especially for those of small size Small firms are defined differently by region; they account for a large share of most economies. In 2018, following the EUROSTAT definition of less than 250 employees, SMEs accounted for 80% of employment in the European accommodation and food service industry (EUROSTAT, 2020). This number was 60% for the United States, which defines small businesses as those having up to 500 employees (Small Business Administration, 2020). Hospitality is characterized by SMEs, but by family firms accounting for more than 90% of hospitality and tourism SMEs in Europe (Peters & Buhalis, 2013)

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