EXAMINE THE FACTORS INFLUENCING THE FIRM PERFORMANCE OF LOCAL TRAVEL COMPANIES IN MALAYSIA

Abstract

Malaysia's travel sector is experiencing rapid growth after the COVID-19 pandemic and both domestic and international service providers are significant competitors in the current thriving market. This study investigates the elements that influence the firm performance of Malaysian local travel service providers. This study emphasizes impact of innovation, technology adoption, and core competency to the firm performance. Despite the considerable volume of scholarly research addressing this subject, the distinct and cumulative effects of technology, innovation, and core competency have not been sufficiently explored within the context of Malaysia. To fill this gap, this study rigorously explored technology adoption, innovation, and core competence, and how those factors influence to firm performance. This research applied a quantitative method, with data gathered via an online self-administrative survey. Survey questions were sent to 915 travel companies, and 219 responded. It was found that independent variables, innovation, technology adoption, and core competence have a positive effect on the performance of local travel enterprises. These critical success elements propel local travel companies to the top of the market, where they compete with other top international travel companies in providing online or offline services to customers. Thus, Local travel companies must set up the culture to generate innovative ideas, acquire latest technology, and continue training and upskilling program to achieve desire organization performance. The findings of this study will contribute to the Malaysian travel businesses, policymakers, and stakeholders involved in the tourist industry.