Importance and Measurement of Entrepreneurial Quality and Processes in Tourism

Abstract

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.