Organizational Challenges of Digitalization Initiatives in Tourism Network Management Organizations

Abstract

The tourism industry with mainly small and medium sized enterprises (SMEs) is strongly influenced by digitalization, though, confronting the actors with challenges. As network management organizations facilitate cross-cutting themes across their network, digitalization could be assumed to be one of them. In a case study approach this paper investigates the status and role of the Destination Management Organization (DMO) in digitalization initiatives, modes of stakeholder participation and related organizational challenges. The findings point to a tension between heterogeneity of the sector and required homogeneity of the touristic experience of the visitor. While the DMO’s leadership role for digitalization is expected, it has not been fully embraced yet. The case study identifies a set of internal and external challenges impeding its implementation beyond single digital projects. The paper suggests collaborative portfolio governance for improved participation, flexibility and transparency. Limited by the single case study data, further research is recommended with additional case studies, quantitative data and incorporating findings from other network actors. Researching the operability and effects of the collaborative portfolio governance approach is subject to future research.