Small And Medium Tourism Enterprises Research Articles

APPLICATION OF AGGLOMERATIVE HIERARCHICAL CLUSTERING IN GROUPING TOURISM INDUSTRY SMES IN EAST JAVA

This study addresses a significant research gap in the classification and evaluation of Small and Medium Enterprises (SMEs) within the tourism industry in East Java, specifically focusing on their marketing performance. The primary objective is to categorize these SMEs based on their marketing effectiveness, a critical factor for their competitiveness in the tourism sector. To achieve this, the research employs cluster analysis, utilizing Agglomerative Hierarchical Clustering techniques. The optimal clustering method was determined using the cophenetic correlation coefficient and cluster validation indices. Data for the analysis were collected through questionnaires, with a sample comprising 30 tourism SMEs across 11 regions in East Java, with responses from three employees per SME. The findings revealed two distinct clusters: SMEs with fairly good marketing performance and those with good marketing performance. The results suggest that while many SMEs in the tourism industry in East Java exhibit competitive marketing capabilities, there remains a subset that requires strategic improvements, particularly in spiritual marketing practices. This study's novelty lies in its approach to classifying tourism SMEs by marketing performance, providing a framework for targeted performance enhancement and industry strengthening in the region.

Barriers to Learning From Crisis: A Neglected Aspect of Disaster Risk Reduction in the Tourism SMEs in Sri Lanka

The survival of Small and Medium Enterprises (SMEs) is a critical necessity due to their economic and social contributions. Organizational crises, on the other hand, pose a threat to the viability of SMEs. Thus, DRM has become increasingly important in the organizational management of SMEs. As a strategic approach to DRR in organizational context, SMEs need to practice crisis management, particularly need to learn from crises. However, the high crisis vulnerability of SMEs indicates ineffective crisis management on their part, mainly due to failure to learn from crises. Using a social constructivist approach, this phenomenological study attempts to identify the various barriers that hinder the crisis learning of SMEs. An in-depth investigation was conducted with 19 selected tourism SMEs located in the Southern Province of Sri Lanka. The results revealed the existence of several crisis learning barriers classified using IPA, namely personal, organizational, and industry level barriers. Among them, the organizational level barriers brought attention to the lack of internal resource integration for crisis management in tourism SMEs. These findings could assist SMEs and stakeholders to identify the corrective measures required to eliminate such learning barriers. They may also help policymakers and supporting organizations in launching their services.

Tourism SME default: A note on predictors

This note addresses the lack of progress on small and medium enterprises (SMEs) default prediction in the tourism sector. Using the case of Croatian tourism SMEs, this note applies Altman's recently introduced Omega Score model to (i) predict SME default, (ii) explore and contrast important variables for default prediction in tourism vs. other sectors, and (iii) adapt the original Omega Score to tourism sector specifics. Financial ratios have historically been prominent among the predictors in scholarly investigations. However, our findings underscore the significance of supplementing these ratios with other predictors of tourism SME default, specifically with information on (i) creditor payment behaviour and (ii) employee characteristics and relationships with them. Furthermore, our research demonstrates that a refined selection of six variables, accompanied by adjusted weightings, can significantly enhance default prediction accuracy. The results provide valuable lessons for the strategic management of tourism firms.

Survival Strategies of Local SMTEs in Covid-19 Pandemic in Heritage Tourism Sites in Turkey

Covid‑19 pandemic has been a multi‑dimensional challenge for tourism industry globally for more than 15 months now, but even so, there is a lack of information about the impacts of pandemic on different destinations and tourism enterprises. To contribute to the scientific endeavors to understand, explain, and explore the impacts of this disease on tourism, this research investigates the impacts of the pandemic on local small and medium tourism enterprises (SMTEs) in Cappadocia Region, a globally well‑known Heritage Tourism destination in Turkey, and their survival strategies. Primary data was collected through structured interviews conducted with 97 respondents from two participant groups including respondents from small and medium accommodation facilities and tourism enterprises including auxiliary tourism services. We found that heritage tourism destinations and SMTEs located in these destinations seem to be much vulnerable to the impacts of Covid‑19 owing to destination characteristics. Findings show that great majority of the SMTEs has established solidarity based new business relations for survival but they also have spent their resources for future growth and investment which seem to jeopardize the recovery efforts

Resilience for Hospitality and Tourism Enterprises: A Review and Directions for Future Research

The sustainability of tourism destinations is highly dependent on an innovative and thriving tourism sector comprised predominantly of small and medium tourism enterprises (SMTEs). Such businesses are the economic engines of many regional and rural communities and are pivotal in providing the essential services of accommodations, attractions, and experiences. As post-COVID-19 recovery takes hold, national borders reopen and tourism rebounds, rethinking the sustainability and resilience of such tourism businesses has become essential. Tourism businesses need to be not only responsive or reactive in the aftermath of disaster events, but to structure themselves in a way that strengthens their resilience. This study systematically evaluates existing literature on hospitality and tourism SMEs and resilience using bibliometric analysis to synthesise existing knowledge, identify major developments, themes, and issues, and stimulate future research. A lexical network analysis identifies five interrelated clusters of research themes within the extant literature on tourism and resilience, providing a comprehensive framework to help understand the corpus of knowledge on this important domain, while a temporal analysis facilitates an understanding of how these themes have developed over time, helping to identify developing research themes and gaps in the literature. A major gap identified is the lack of integration of sustainability as a research topic into the existing knowledge network on business resilience and tourism. This study also outlined insights for academia, practitioners, tourism marketers, developers, and policymakers.

Adopting Green Innovation in Tourism SMEs: Integrating Pro-Environmental Planned Behavior and TOE Model

Aim/Purpose: This study investigated factors influencing the intention to engage in green innovation among small and medium enterprises (SMEs) in the tourism sector, using an integrated approach from the pro-environmental planned behavior (PEPB) and technology organization environment (TOE) models. Background: Green innovation is a long-term strategy aimed at addressing environmental challenges in the Indonesian tourism sector, especially those related to SMEs in culinary, accommodation, transportation, and creative industries. While prior research primarily focused on innovation characteristics and various behavioral intentions towards new technologies, this study pioneered an approach to understanding green innovation practices among SMEs by examining behavioral intention and the influence of internal organizational and external environmental factors. This was achieved through the PEPB model, which extends the theory of planned behavior (TPB) by incorporating perceived authority support and perceived environmental concern and integrating it with the TOE model. This comprehensive approach was crucial for understanding SME motivations, needs, and challenges in adopting green innovation, thereby supporting environmental sustainability. Methodology: Data were collected through offline and online questionnaires and interviews with 405 SMEs that had implemented green innovation as respondents. The theoretical model was tested using partial least squares structural equation modeling (PLS-SEM) with top-level constructs. Contribution: This research contributed to the development and validation of an integrated model for green innovation in SMEs, offering insights and recommendations for all stakeholders in the tourism sector to formulate effective green innovation strategies. Findings: This research revealed that the integrated model of pro-environmental planned behavior and technology organization environment successfully explained 71% of the factors influencing the intention to engage in green innovation for SMEs in the tourism sector. Perceived authority support emerged as the strongest factor, while perceived behavioral control was identified as a weaker factor. Recommendations for Practitioners: The research findings recommended that SMEs in the tourism sector focus on customer satisfaction and operational efficiency and optimize the recruitment and training processes of resources to maximize success in adopting environmentally friendly innovations. Meanwhile, for the government, providing support, incentives, and stringent environmental regulations could encourage sustainable business practices. Recommendation for Researchers: The research findings recommended that SMEs in the tourism sector focus on customer satisfaction and operational efficiency and optimize the recruitment and training processes of resources to maximize success in adopting environmentally friendly innovations. Meanwhile, for the government, providing support, incentives, and stringent environmental regulations could encourage sustainable business practices. Impact on Society: Examining the factors influencing the intention to engage in green innovation among SMEs in the tourism sector carried significant social implications. The findings contributed to recommending strategies for businesses and stakeholders such as the government, investors, and tourists to collectively strive to minimize environmental damage in tourist areas through the implementation of green innovation. Future Research: There are several promising avenues to explore to enhance future research. Expanding the scope to include diverse regions and industries and using additional approaches, such as leadership theory and management commitment theories, can increase the R-squared value. Additionally, broadening the profile of interviewees to obtain a more comprehensive understanding of the intention to engage in green innovation should be considered.

Digitalization, Branding, and Network Collaboration Strategy among SMTEs: Preliminary Qualitative Analysis

The primary objective of this research is to develop strategies enabling Small and Medium Tourism Enterprises (SMTEs) to effectively navigate and actively participate in digital transformation and collaborative networks. Employing a qualitative methodology with the application of Quantitative Strategic Planning Matrix (QSPM) analysis, data for this study is gathered through direct observations and interviews involving stakeholders in the tourism industry, local government, village authorities, and tourism business associations such as PHRI (Persatuan Hotel dan Restoran Indonesia) and BPW (Badan Pariwisata Wisatawan). The key findings underscore the significance of (1) fostering a positive service reputation culture, (2) involving diverse stakeholders in establishing a sustainable tourism destination management system, and (3) reinforcing tourism promotion efforts through the strategic use of expanded digital media channels. The practical implications of this research extend to providing tangible guidance for SMTEs to actively enhance their services for tourists. The distinctive contributions of this study manifest in three key dimensions. Firstly, the introduction of the service reputation culture as an innovative approach supports the evolution of novel services in the tourism industry. Secondly, it addresses the underexplored research theme of SMTEs, filling a significant knowledge gap. Thirdly, the utilization of QSPM analysis in this study showcases originality, as this analytical method is rarely employed in analogous contexts. Consequently, this research contributes unprecedented insights to the strategic understanding of SMTEs within the realm of service reputation culture, paving the way for innovative and informed approaches in the tourism industry.

Technology adoption meets green tourism supply chain management for sustainability of small and medium-sized tourism enterprises: A lesson from Zimbabwe

In the global pursuit of achieving sustainability within the tourism sector, technology adoption and green tourism supply chain management (GTSCM) have garnered dominant attention. This research examines how small and medium tourism enterprises (SMTEs) in Zimbabwe can achieve sustainability by adopting technology and practising green tourism supply chain management (GTSCM). Positivism philosophy was adopted in line with the quantitative nature of the study. The research embraced an explanatory survey research design and a structured questionnaire was used to gather primary data. The survey’s population was drawn from SMTEs in the tourism sector and data were collected from 615 representatives. The survey found a significant positive relationship between technology adoption, GTSCM and sustainability dimensions, except social sustainability. Additionally, GTSCM mediated these relationships, except social sustainability. The findings highlight the crucial role of GTSCM in influencing sustainability outcomes within SMTEs in the tourism sector. The study suggests adopting technology and GTSCM practices can improve SMTEs’ sustainability. It contributes knowledge on the relationships between technology, GTSCM, and SMTEs’ sustainability in tourism. Implications provide insights for policymakers on promoting sustainable practices and sustainability goals in tourism.

Digital Communication Recovery Strategy for Business Continuity amid Covid-19: Small and Medium Tourism Enterprises in Gauteng

This study examined the adoption of digital channels to support business continuity following the outbreak of Covid-19. The population of the study comprised small and medium enterprises (SMEs) as tourism service providers in the City of Tshwane, Gauteng, South Africa. The study employed a quantitative approach and collected data using a self-administered questionnaire. The sample frame was 100 tourism SMEs registered with the Gauteng Tourism Authority, and the sample consisted of 65 business owners selected using purposive sampling. The data were analysed using descriptive statistics. The results show that SMEs have adopted a variety of digital channels such as Skype, MS Teams, Zoom, emails, and so forth. Most of the respondents have shown skills in using digital channels such as Skype, MS Teams, Zoom, emails, and more. The most common applications, such as Skype, MS Teams, Zoom, and emails were used very effectively. The pandemic has substantially increased the diffusion and adoption of collaboration platforms to maintain business productivity and creativity. By linking the workforce beyond the limitations of location or workstation, digital channels allow workers to build communities of interest and collaborate while supporting business continuity. This study targeted only tourism SME service providers in the City of Tshwane. It would have been ideal to include SMEs in other provinces as well, but this would have required more time and resources, which the researcher simply did not have. Therefore, future studies should include SMEs from other provinces to understand how they are using digital channels to support business continuity following the outbreak of Covid-19.

Psychological Pricing and the Performance of Small and Medium Tourism Enterprises (SMTEs) in Arusha City

Psychological Pricing and the Performance of Small and Medium Tourism Enterprises (SMTEs) in Arusha City

Tourism SMEs’ resilience strategies amidst the COVID-19 crisis: the story of survival

ABSTRACT Small and medium enterprises (SMEs), play a crucial role in the economy of every destination, particularly in developing countries. However, due to their size, limited resources, cash flow, and restricted access to risk-management tools, SMEs are often significantly impacted by crises. Therefore, gaining a deeper understanding of the resilience strategies they employ during and after a crisis is of paramount significance. The purpose of this study is to identify the resilience strategies utilized by tourism SMEs amidst the COVID-19 crisis in a developing country, Iran. Qualitative data was collected through interviews with tourism SME owners and managers in two phases, conducted in 2020 and 2022. This primary data was supplemented by secondary data collected during the same period. The findings of this study highlight the disproportionate impact of global crises on tourism SMEs in Iran, exacerbating the negative consequences of the country's sanctions-ravaged economy. Through offering insights into the resilience tactics adopted by SMEs, this study aims to provide both theoretical and practical contributions.

Linking knowledge management to tourism business of SMEs in aftermath of disaster: Implications for open innovation

Business recovery in the aftermath of natural disasters has become a crucial issue, particularly for tourism small and medium enterprises (SMEs). This study aimed to examine and analyze knowledge management (KM) as an effort to improve business adaptability, mitigation, and business loss in supporting business recovery in the tourism SME sector after the Lombok earthquake. Data collection was carried out using an offline survey involving 272 owners and managers of tourism SMEs that were affected by the Lombok earthquake in the West Lombok and North Lombok regencies, which are tourism destinations in West Nusa Tenggara Province. The collected data were analyzed using SmartPLS. The results show that KM has a significant effect on improving business adaptability, mitigation, and business loss . Moreover, mitigation has a significant effect on improving business adaptability, business loss, and business recovery. Further, business adaptability and business loss have a significant effect on business recovery. However, KM has no significant effect on business recovery. The novelty of this study relates to examining and analyzing the relationship between KM, mitigation, business loss, and business recovery, which has not been widely studied in the SME sector.

A “new tourism cycle” on the Canary Islands: scenarios for digital transformation and resilience of small and medium tourism enterprises

PurposeThis paper discusses plausible future scenarios for small and medium tourism enterprises (SMTEs) in the “sun, sea and sand” destination of the Canary Islands (Spain) and assesses to what extent they are prepared to adjust to market changes and technological developments in the light of both sudden disruptions and long-term shocks.Design/methodology/approachA scenario analysis was made based upon expert interviews, leading to a 2 × 2 scenario matrix.FindingsAlthough regional, national and European strategies advocate digital transformation as a step towards building resilience and towards a more sustainable future, this study identifies two major uncertainties that can put that transformation at risk: a change of the traditional “sun, sand and sea” visitor to a more conscious, individual and inquisitive traveller or “Promad”, and the business culture of SMTEs.Research limitations/implicationsResilience for sudden and for slow-paced disruptions poses different challenges for SMTEs. Their next step in the digital transformation must take them form marketing and sales-oriented e-business to growing interconnectivity and innovation across supply chains.Practical implicationsA market change towards the “Promad” type of traveller causes at least a temporary mismatch of demand and supply. As many SMTEs miss either the knowledge or the resources to invest in digital transformation, the process will depend on support and coordination at destination level.Originality/valueThe study identifies, with the example of the Canary Islands, the difficulties for destinations and individual businesses in making the envisioned transition of mass tourism to more competitive forms of tourism with a smaller ecological footprint.

Social Networking Sites: A panacea for enhancing productivity in the organisation during Covid-19 crisis, the case of tourism SMEs in South Africa

Social networking sites are regarded as useful catalysts for enhancing organisational work productivity and creativity. In the wake of the COVID-19 pandemic, the spin-offs associated with these particular platforms have become even more evident. Consequently, this study sought to explore the added benefits of using social networking sites to improve the work productivity and creativity of selected urban tourism-related Small and Medium Enterprises (SMEs) in the City of Tshwane, South Africa. The exploration of the researchquestions of the study suggests a theoretical framework that consists of key elements of diffusion and adoption of technology. As a result, Roger’s Diffusion of Innovations Theory proved to be most applicable as it offers a relevant analytical framework for the dissemination and adoption of technology. The study adopted a qualitative approach by conducting interviews with a targetedpopulation of SME service providers in the context of Pretoria (Tshwane) in the Gauteng province. The sample consisted of 50 such service providers that were selected using purposive sampling. Sampled SMEs included: 20 "bed and breakfasts", 20 guest houses, and 10 tour operators. Interviews were then conducted with their relevant managers. The data were analysed using open coding, where dominant themes from the discussions were identified and discussed in detail.

Psychological capital, social capital and organizational resilience: A Herringbone Model perspective

The resilience of small and medium enterprises (SMEs) can emerge from entrepreneurial and organizational factors. Yet, the joint role of psychological capital (PsyCap), social capital (SC), and organizational resilience (OR) in facilitating tourism SMEs recovery remains uncovered. Organizational resilience models are either conceptual and/or mainly derived from studies on large organizations focusing on their strategic and operational capabilities, with the resource and capabilities constraints faced by SMEs largely ignored. This study applies the Herringbone model of organizational resilience to evaluate the internal and external factors that enable SMEs to (re)build resilience during COVID-19. In-depth interviews with owner-managers of tourism organizations in Christchurch, New Zealand reveal several themes and sub-themes that reflect not only a close influence of the owner/manager PsyCap on organizational resilience, but also the role of internal (ISC) and external (ESC) social capital in facilitating and hindering organizational resilience. As such, the study highlights the interplay between psychological and social resources in facilitating organizational recovery during COVID-19 using resilience capacities and activities. Implications for both theory and practice are offered.

Tourism SME’s Adoption of Social Media Analytics Tools and Technology

The study analysed the current state of the adoption of social media analytics (SMA) technology and tools to tourism small and medium enterprises (SME) in Tanzania and to understand the factors which influence the adoption of SMA tools to tourism SMEs. SMA became the basic technology in understanding and getting insight into social media data. Tourism SMEs are among the users of social media platforms. The researcher carried out the survey in Arusha and Kilimanjaro regions to determine the current state of the adoption of SMA to tourism SMEs. The technology, organization and environment (TOE) framework has been used to determine the factors that contribute to the adoption of SMA. The study finding shows that many tourism SMEs are using social media in their business activities however the adoption of SMA is very low, majority of the SMA are not adopting and using SMA. Technology, organization and environmental factors seem to allow the adoption of SMA to tourism SMEs. The study contributes to the research body of knowledge on the current status of adoption of SMA to tourism SMEs and managerial contribution on the factors to determine when tourism SMEs wants to adopt SMA.

CSR Communication among Tourism SMEs through Their Websites

Small and Medium Enterprises (SMEs) in tourism are increasingly communicating their Corporate Social Responsibility (CSR) initiatives via their websites to build a positive image and promote customer relationships. This study examined such CSR engagement and communications by tourism SMEs in Nepal based on qualitative analysis of website content and in-depth interviews. Google search engine was used to select SMEs, and textual data were extracted from their websites. Following data saturation, a review of twenty-five websites was initially compared, and the obtained information was subsequently evaluated with information provided through individual interviews. Overall, CSR activities were largely practiced at a philanthropic level, and to some extent, at an ethical level. SMEs were primarily focused on activities related to social and environmental issues within the communities in which they operate. The results of this exploratory study provide an initial assessment of CSR among tourism SMEs in Nepal and could assist tourism associations/organizations with initiatives.

Marketing Mix Strategies of Small and Medium Tourism enterprises in Masvingo Province, Zimbabwe

The study sought to identify the marketing mix strategies of small and medium tourism enterprises (SMTEs), focusing on lodges and hotels of Masvingo Province in Zimbabwe. The continued low business performance by SMTEs in Masvingo Province motivated the study. The marketing mix theory underpinned the study. The ten tourism marketing mix strategies, namely product, price, place, promotion, people, process, physical evidence, programming, packaging, and partnership were the strategy variables of the study. The study employed a quantitative research approach. An online structured questionnaire was used to collect data from all the 250 owners and managers of SMTEs. Statistical Package for Social Sciences (SPSS) version 26 was used for the analysis of data. The main study findings were that SMTEs in Masvingo Province use all the ten tourism marketing mix strategies, albeit with varying degrees of application. The three most used strategies were product, packaging, and price. The three least used strategies were people, programming, and partnership. The moderately used strategies were physical evidence, promotion, place, and process. The value of this study relates to the use of a ten tourism marketing mix framework by SMTEs. Implications are that study organisations may not reach full performance potential due to unequal use of the ten tourism marketing mix strategy elements.

Effect of Innovation, Knowledge Sharing and Trust Culture on Hotels' SMEs Growth in Eswatini

Innovation, knowledge sharing and trust culture contribute significantly to hotel small and medium enterprises (SMEs) in the leisure and hospitality industry. However, most SMEs are family-owned, and staff cannot explore and contribute to business growth. This article describes the effect of innovation, knowledge sharing, shared value and trust culture on hotel SMEs growth in Eswatini (former Swaziland). The study used a mixed explanatory method where data collection and quantitative analysis occurred first, and followed by qualitative research. Overall the results revealed that innovation shared based, knowledge sharing, and trust culture have an impact on small and medium hotels growth in Eswatini. The in-depth follow-up interview provided reasons for these effects. The study's empirical findings also suggest that the innovations, knowledge sharing and trust culture contribute to the growth of the hotel small and medium sector in Eswatini. The implications of the findings in this study for the growth of this sector are that the sector should develop policies and strategies that would enhance growth in the business. The limitation of the study was that it only focused only on purposefully selected small and medium entrepreneur’s hotel establishments in Eswatini. The study contributes to empirical studies on the hotel and tourism SMEs sector in developing countries.

Innovation and productivity in tourism small and medium enterprises: A longitudinal study

This paper examines the factors influencing innovation and the relationship between innovation and productivity among Australian tourism small and medium enterprises (SMEs). Unlike most past studies relying on cross-sectional data, this study employs longitudinal innovation data of 400 tourism SMEs over five years. A two-stage random-effects probit model is used to account for unobserved firm heterogeneity. The results show that innovation inputs, firm characteristics, and external environment significantly affect innovation in general with competition and demand uncertainty being the distinct drivers of marketing innovation. The study reveals a significant and positive effect of technological and marketing innovation on tourism SMEs' productivity. Findings inform policy discussions to improve the current low levels of productivity in the tourism industry.