Innovation and service experiences in small tourism family firms

Abstract

Purpose This paper aims to explore the pertinent issues of innovation and service experiences in family firms in the tourism industry, which are mostly small- and medium-sized enterprises. Design/methodology/approach The conceptual paper, building on social identity theory, undertakes a thorough review of the relevant literature before developing propositions regarding innovation and service experiences for small family firms in the tourism industry. Findings Small tourism family firms are faced with deficits in strategic orientation and innovation, and cooperation seems to be a means to overcome size deficits in family-run businesses. Customers integrated into the service experience enhance innovative developments and foster innovation in small tourism firms. As a prerequisite, the service experience must be appropriately managed by collecting and evaluating relevant data on customers’ needs, expectations and satisfaction. An open-minded and consumer-focused market-driven strategy seems to be an advantage. Practical implications Future research should undertake empirical studies to validate and/or modify the propositions presented in this conceptual paper. Originality/value This is one of the few studies to have addressed the relationship between service experiences and innovation for family-run small businesses in the tourism industry.