Abstract

The lack of tourism-specific tacit knowledge can prevent locals from fully participating in rural tourism development. Using a longitudinal case analysis, we explore how tacit knowledge transfer to locals can be facilitated and their capabilities can be enhanced. We find that experienced migrant workers from tourism firms can provide tacit knowledge specific to tourism operations. However, the absence of knowledge-related transaction activities and the lack of cross-group trust make the “migrant-local” knowledge transfer spontaneous, fragmented, and ineffective. We empirically demonstrate that an influential third party's intervention can promote tacit knowledge transfer by bearing transaction costs, initiating knowledge transfer plans, and coordinating relationships among participants. Finally, we summarize a generalized process by which different stakeholders jointly formalize tacit knowledge transfer practices, including identification, negotiation, implementation, and valuation. Overall, this study contributes to the theory and practice of knowledge management in rural tourism development.

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