The Effect of Human Capital, Social Capital, Open Innovation on Tourism Enterprise Performance in Indonesia

Abstract

Objective: This study aims to analyze tourism business performance influenced by human capital, social capital and open innovation. The problem approach in this research uses a supply-side approach regarding how tourism actors use social networks and innovation to build social capital, which impacts increasing company performance.
 
 Theoretical framework: This research analyzes tourism performance after the pandemic by integrating social capital and innovation theories (Shi et al., 2020; Ogink et al., 2023). The concept of tourism enterprise performance has received widespread attention among researchers and management practitioners for two decades, as evidenced by various research papers and concept developments that lead the tourism industry to face problems and changes in tourist expectations regarding human capital readiness, social capital and open innovation. However, There is still much to investigate and learn about. This researcher further tested the social capital approach from the tourism service provider side, which still requires further testing.
 
 Method: This research explores the application of human capital, social capital and open innovation to government officials and tourism actors in Yogyakarta, Indonesia. Yogyakarta was chosen as the research location because Yogyakarta is the second tourist destination after Bali for tourist visits to Indonesia. The sample used in this research was 353 tourism SMEs. Data was collected through questionnaires distributed directly to tourism managers. The data analysis tool uses PLS-SEM structural equations.
 
 Result: The analysis results show that the Tourism Enterprise Performance (TEP) model is acceptable, and not all proposed hypotheses have a significant positive effect.
 
 Conclusion: Human capital has a positive influence on social capital, and social capital has a positive influence on open innovation and TEP. However, the influence of social capital on open innovation and the influence of open innovation on Tourism Enterprise Performance are not significant. Future research should analyze several human capital, social capital, open innovation and Tep variables separately for each type of tourist destination. This research can create better generalizations regarding TEP in each tourist destination.
 Originality/Value: The results indicate that the development of literature on human capital, social capital and open innovation has a substantial impact on tourism business performance and the development of tourism entrepreneurship knowledge