Measuring Dimensions of Business Effectiveness in Greek Rural Tourism Areas

Abstract

Destination management and business effectiveness (DMBE) is a critical concern in today's volatile and unstable economic environment. The expansion of globalization and integration of markets, the current economic crisis, and the enforcement of regional and/or local administration in the European Union brings to the forefront the need for DMBE. The core business mission of small and middle-size (SMEs) corporations is being competitive and sustainable in an active market. However, in the past, only some dimensions of entrepreneurship and management and business effectiveness in tourism rural areas have been used to measure the DMBE. This study proposes a DMBE model that is based on the theoretical dimensions identified from previous studies and builds on the work of Wilson, Fesenmaier, Fesenmaier, and Van Es (2001) on successful factors for rural development. Utilizing data collected from 174 Greek rural tourism enterprises, the proposed DMBE model is tested. Findings identify two subdimensions, namely “local leadership and government synergetic support” and “capable and skilful staff.” Managerial implications of these two dimensions for rural tourism SMEs are discussed.