Innovation Driving Factors in Tourism Family Business: A Theoretical Approach

Abstract

This chapter presents a theoretical approach for studying innovation driving factors from the Institutionalism perspective as an innovative research method for tourism family-owned organisations. Based on a systematic review of literature, theoretical and empirical documents regarding innovation driving factors in tourism and hospitality were analysed to identify the main subcategories, dimensions, and units of analysis for family-owned tourism firms. The ownership, family, and business axis of family-owned businesses interact with the tourism environment through dynamics among endogenous and exogenous driving factors. The tourism structures are social, economic, cultural, political, technological, and environmental, and the agency is in the business owners. Exogenous driving factors are the tourist demand, the industry, and public and private institutions. While the endogenous factors are the owner’s characteristics, the family, human capital, and the organisational culture. Among these dimensions, 13 units of analysis are identified. Integrating family-owned business within the tourism field has shown a different dynamic from other industries since they can strengthen cooperation ties in destinations and improve the tourist’s experience from their intangible resources. Far from the neoclassical economics’ theory vision, where first contributions to innovation arise, this paper exposes the need to approach the studies of touristic family-owned businesses from a theoretical paradigm encompassing social and cultural as well as economic aspects. Understanding the interaction of broad structures and the actor’s agency in the decision-making process contributes to the interdisciplinary studies of tourism and the development of its theoretical basis. As a theoretical paper, this contribution does not present empirical evidence but is the basis for future research. Its approximation chooses a specific theoretical paradigm with a relatively widespread development but current and complex enough to accommodate integrative positions in the study of family-owned tourism businesses.