Small And Medium-sized Tourism Enterprises Research Articles

The democratization of tourism distribution: a Horizon 2050 paper

Purpose Emphasizing the critical role of technology-enabled distribution in tourism, this study, a viewpoint, aims to highlight the potential of democratized technologies in readdressing the competitive imbalance between small- and medium-sized tourism enterprises (SMTEs) and their larger peers in today’s online marketplace. By enhancing competitiveness and performance, democratized technologies can strengthen the resilience, sustainability and competitive position of the SMTEs on which tourism depends, helping to support the Horizon 2050 agenda and UN’s Sustainable Development Goals. Design/methodology/approach Examining the development of online and electronic distribution in tourism, the viewpoint identifies the key challenges to the successful use of technology-based distribution systems by SMTEs, as well as highlights the trend toward democratized technologies as a potential solution to help improve technology take-up and performance. Findings With no/low initial capital or operating costs, and little need for technical expertise, democratized technologies have the potential to overcome two of the three key challenges limiting the successful adoption and use of distribution technologies by SMTES. The key blockage remains one of managerial awareness and acceptability. With informal organization structures, little managerial or technical training and an ingrained reluctance to change, SMTE managers remain unfamiliar of the possibilities offered by this developing trend. While this challenge could be addressed by awareness building and training, in the longer run, it is likely that more substantial progress will arise from generational change in SMTE management, with digitally native successors more likely to exploit this development to improve competitiveness and performance. Originality/value Emphasizing the pivotal role that democratized technology can potentially play in redressing the competitive imbalance between SMTEs and their larger peers in the distribution space, this viewpoint serves as a call for action for tourism businesses to re-examine their approach to technology adoption and leverage democratized technologies to address current deficiencies in their distribution approach, helping to improve competitiveness and performance, thus supporting the Horizon 2050 initiative and furthering the UN’s Sustainable Development Goals.

Determinants of business recovery: The role of government support as moderator (a study on tourism SMEs affected by Lombok earthquake, Indonesia)

BACKGROUND: Natural disasters such as earthquakes have imposed particular problems on small and medium-sized enterprises (SMEs), including on their journey to recovery. Business recovery is a term that has numerous theoretical and practical applications and is frequently regarded as the most elusive stage of a disaster cycle. Hence, it necessitates an exploration. OBJECTIVE: This study examines the determinants of business recovery in the aftermath of a disaster. A framework synthesized from the literature review and hypotheses developed demonstrate factors that drive business recovery. METHODS: This study used an explanatory approach that laid quantitative foundations. The study also tested relevant hypotheses with a statistical approach using the PLS-SEM technique. An off-line survey was conducted using data collected from 272 SMEs in tourism affected by the 2018 Lombok earthquake in Indonesia. The data were analyzed with SmartPLS to test the effects of knowledge management, mitigation strategy, business adaptability, business recovery, and government support. RESULTS: The results indicate that knowledge management, mitigation strategy and business adaptability are determinants of business recovery. However, government support has no influence in leveraging those three determinants of business recovery. This finding may indicate that SMEs that possess a strong level of knowledge management with the ability to formulate a mitigating strategy as well as adapt to certain changes are more likely to succeed in recovering their businesses. In addition, whether or not government support is viable, independently managed SMEs are more likely to progressively perform and be less dependent on aid from other entities on their road to recovery. CONCLUSIONS: KM and mitigation strategy function as determinants of business adaptability subsequent to SMEs’ recovery. On the basis of the resource-based view (RBV), mitigation strategy and business adaptability are influential resources that can leverage firms’ potential for in the quest of competitive advantage and facing environmental turbulence. Nonetheless, government support remains a challenge in the survival of SMEs to cope with the negative impact caused by disaster. Thus, government should strengthen the awareness towards such issue as well as providing much more holistic support in the future particularly to educate SMEs on the importance of mitigation strategy in prior to a disaster.

On the Incentive and Sustainability Impact of SDGs on Innovation in Small and Medium-Sized Tourism Enterprises (SMEs)

This paper investigates the influence of Sustainable Development Goals (SDGs) on innovation and sustainability in Small and Medium-sized Tourism Enterprises (SMEs) in Brazil. Through qualitative methods, including interviews and document analysis, the study explores how specific SDGs act as incentives for innovation, shaping employment strategies and responsible production processes within SMEs. The sustainability impact is evident in environmental conservation, community engagement, and responsible consumption. Despite notable achievements, challenges such as resource constraints persist, emphasizing the need for targeted support. The study concludes that aligning with SDGs positions Brazilian SMEs as contributors to global sustainability, promoting responsible and innovative business practices.

Innovation for sustainability through co-creation by small and medium-sized tourism enterprises (SMEs): Socio-cultural sustainability benefits to rural destinations

Small and medium-sized tourism enterprises (SMEs) are the dominant industry players in rural destinations. This study investigates how they can contribute to socio-cultural sustainability benefits of rural destination communities by engaging in co-creation in innovation for sustainability (IFS). The rural destinations of Vega and Røros were selected as qualitative empirical cases to investigate 14 tourism SMEs' co-creation in IFS practices. The findings indicate that due to contextual elements of rurality (e.g. local embeddedness, strong personal relations, and trust), tourism SMEs co-create in IFS with various local stakeholders, and contribute to the socio-cultural benefits of rural destinations' sustainability through local sourcing, education, resource synergies, inclusion, and quality of life. This study contributes to the literature on sustainable rural destination development and the role of tourism SMEs, as well as expands the understanding of IFS and the benefits of co-creation.

Unleashing the Potential: An Integrated Analysis of Human Resource and Marketing Strategies in Empowering East Java's Tourism SMEs

This study examines the implementation of human resource management (HRM) and marketing strategies in small and medium-sized enterprises (SMEs) within East Java's tourism sector. The imperative for examination arises from the observation that tourism SMEs in Indonesia have not yet fully regained their pre-COVID-19 pandemic level of recovery. There is also a lack of holistic research of HRM and marketing strategies implementation in SMEs in the tourism sector in East Java. The research involves 1320 respondents from 440 tourism SMEs and utilizes the Path Analysis method. The findings highlight significant relationships between spiritual marketing, innovation culture, quality of work life, and rewards within SMEs. These factors positively influence the market orientation of SMEs, facilitating the development of products and services that meet market demands, enhance customer experiences, and foster competitive advantage. Additionally, the study reveals that the interplay of spiritual marketing, innovation culture, quality of work life, and rewards directly impacts individual performance, consequently leading to enhanced overall SME performance, as measured by marketing performance.This research contributes to the existing body of knowledge in business research, offering valuable insights into the current dynamics of tourism SMEs in the region. Moreover, it provides strategic solutions to address the decline in tourist arrivals post the COVID-19 pandemic.

Dynamic capabilities and SMEs competitiveness: the moderating effect of market turbulence

PurposeThis study aims to examine the effectiveness of individual dynamic capabilities (DC) constructs and whether they had comparable effects on a company’s competitiveness in market turbulence (MT). This study used quantitative methods to determine how the DC elements, sensing, learning, integrating and coordinating, influenced competitiveness, with the moderating role of MT during a real-time crisis.Design/methodology/approachSurvey data was gathered from 426 tourism small and medium-sized enterprises (TSMEs) in the United Arab Emirates and analyzed quantitatively.FindingsThe study found that not all DC constructs were equally important in promoting competitiveness. TSMEs’ survival depended more on sensing and integrating capabilities than learning and coordinating capabilities, and on how these capabilities were used by managers or owners of TSMEs. The study found no moderation effect of MT.Research limitations/implicationsThe generalizability of the results was hindered by the study’s focus on TSMEs in a single geographic location. The reasons for lack of proper mobilization of DCs constructs were not explored, but the data on the relative efficacy of DC constructs during a crisis significantly contributed to the literature.Originality/valueThis study emphasized ways that companies could improve firm competitiveness during a crisis by deploying DCs to optimize operations. The implications for research, practical aspects and limitations are presented and discussed.

How does the performance of SMTEs relate to perceptions of tourists: A case of the Eastern Cape Province

The study aimed to determine perceptions of tourists towards the performance of Small and Medium-sized Tourism Enterprises (SMTEs) in the Eastern Cape Province. Eastern Cape Province is a tourist attraction area with several tourists from various countries visiting it. The study used a quantitative research approach. The study participants comprised 99 tourists who visited the province in which convenience sampling was employed. The empirical data was gathered using a semi-structured questionnaire distributed to all participants. The quantitative data was analysed using SPSS, in which descriptive statistics and regression analysis (multiple and logistic) were undertaken. Tourists indicated that SMTEs had poor infrastructure to access accommodation facilities, and the location of the facility, and service provided varied from one business owner to another. It is recommended that there must be training of the SMTEs in various aspects such as business planning, financial management, and efficient and effective operations of the business to improve their performance for profit and sustainability. Small business owners should apply and strengthen intuitive competitive intelligence practices for identifying clients, suppliers, and competitors as well as trying to outperform their rivals. The local government, through its different units and departments, must promote the tourism industry by providing full support to enhance the economic growth of the province. The Government should improve the road and technological infrastructure to ease access. In addition, the study should be replicated in other provinces to compare the results and learn from best practices in the tourism industry specifically in the accommodation sphere.

Influence of Economic Policy Uncertainty on Tourism SME Performance: The Spanish Case

ABSTRACT This paper studies the influence of Economic Policy Uncertainty (EPU) on the performance of small and medium-sized enterprises (SMEs) involved in the Spanish Tourism Sector and analyzes the role that company characteristics can play in this relationship. To achieve this objective, a sample of 5,529 Spanish tourism SMEs has been taken from 2012 to 2020. Applying panel data analysis, it is found that increases in EPU are associated with lower business performance in these companies. Results suggest that SMEs should increase their size, be more flexible and achieve an appropriate balance between indebtedness and liquidity to be more resilient to EPU. The findings present relevant implications for the managers of Spanish tourism SMEs and for economic policymakers.

Small- and medium-sized tourism enterprises and smart tourism: Tourism Agenda 2030 perspective article

Diseño/metodología/enfoque (límite 100 palabras)Revisando la literatura sobre el uso de las tecnologías de la información y la comunicación (TIC) en turismo, este artículo desarrolla un caso de la implantación del Turismo Inteligente en la mejora de la competitividad de las Pequeñas y Medianas Empresas (PYMES).Objetivo (límite 100 palabras)Al destacar el importante papel de las TIC en el reequilibrio competitivo entre las PYMES turísticas y las grandes empresas, este artículo sirve de llamada a la acción a los gobiernos, las organizaciones regionales de turismo y otras partes interesadas a nivel político para facilitar una difusión más ágil del turismo inteligente, contribuyendo a apoyar la agenda turística 2030 y los múltiples Objetivos de Desarrollo Sostenible de la ONU.Resultados (límite 100 palabras)Sin un enfoque colaborativo, es improbable que las PYMES turísticas utilicen eficazmente las tecnologías emergentes para competir con sus homólogas más grandes y las plataformas en línea. Si se adopta un enfoque de turismo inteligente, los efectos de red entre las partes interesadas pueden ganar terreno, lo que permite a las PYMES competir con mayor eficacia y a los destinos promover la inclusividad y el crecimiento económico sostenible.Originalidad/valor (límite 100 palabras)Al destacar el papel fundamental que pueden desempeñar las TIC en general y el turismo inteligente en particular a la hora de abordar el desequilibrio competitivo entre las PYME y las grandes empresas, este trabajo sirve de llamamiento a la acción para que los gobiernos, las organizaciones regionales de turismo y otras partes interesadas a nivel político aceleren la adopción de los principios del turismo inteligente como medio de apoyar la Agenda de Turismo 2030 y promover los Objetivos de Desarrollo Sostenible de las Naciones Unidas.

Assessment of innovative strategies to improve the tourism sector in Iran.

In the present study, an expert empirical analysis was carried out to assess the innovative strategies to improve the employment rate in the tourism small- and medium-sized enterprises (SMEs) of Iran. The methodology of this paper was extended based on two qualitative and quantitative techniques, namely strengths, weaknesses, opportunities, and threats and quantitative strategic planning matrix. Within this context, three strategies were chosen based on the sum of total attractiveness scores to increase more creation of new jobs and employment positions in tourism SMEs. Two aggressive and competitive strategies were entitled as 'developing financial support to create the new job and employment positions using tourist's finances' and 'defining smart skills and technologies to improve tourism SMEs toward the pandemic impacts' in addition to a conservative strategy of 'providing training support and education technology in the tourism SMEs. Results revealed that the contribution of total direct (indirect) employment to gross domestic product could be anticipated to equal 5.34% (14.86%) in the status quo (2020) by an enhanced rate of 1.97 (2.09) times compared with 2015. Ultimately, technological approaches were described under the innovative strategies to enhance new jobs and employment creation in the tourism SMEs of Iran.

Cloud infrastructure enhancing product competitive advantage of tourism SMEs on online consumption values of tourists

PurposeThis research aimed to examine the role of cloud infrastructure capabilities of tourism small and medium-sized enterprises (SMEs) in the tourism supply chain, increasing the online consumption value of tourists.Design/methodology/approachThis study uses stratified random sampling. A value model was formulated, and the study distributed 2,000 surveys; 412 valid responses were received and analyzed using the structural equation modeling approach.FindingsThe cloud-based architecture provides tourism SMEs a competitive advantage in the dynamic tourism market and the ability to develop next-generation system capabilities while providing tourism SMEs with a new application foundation to adapt to the ever-changing tourism market.Originality/valueFor tourism SEMs, the cloud allows adjusting strategies and procedures for tourism supply chain management; this agility enables tourism SMEs to anticipate changes in the travel market and respond to changing consumer demands in the tourism industry.

Effects of behavioral intention and dynamic capabilities on circular economy adoption and performance of tourism SMEs

The present study in the context of circular tourism assesses the determinants of intention and behavior of 256 small and medium-sized enterprises (SMEs) using the partial least squares structural equation modeling (PLS-SEM). Our analysis shows that attitude, subjective norms, and perceived behavioral control of decision-makers positively affect SMEs’ intention to adopt the circular economy (CE). Furthermore, SMEs’ intention, perceived behavioral control, and dynamic capabilities positively, whereas barriers negatively, affect SMEs’ behavior toward CE. The present study explicates that tourism SMEs though have positive intentions toward CE, yet most of them seem to be failing in adopting CE. This intention-behavior gap is occurring due to various contextual factors. Our analysis reveals that if dynamic capabilities are employed by tourism SMEs, then they might succeed in adopting CE, which would consequently improve not only their financial and environmental performance but also their reputation and relationship with stakeholders. The present study suggests some measures for circular tourism.

Business strategies for small- and medium-sized tourism enterprises during COVID-19: a developing country case

PurposeIn this paper, the authors set out to explore how small- and medium-sized tourism enterprises (SMTEs) in a developing country (Turkey) are coping with economic and financial consequences of coronavirus disease 2019 (COVID-19) pandemic. It is also crucial to understand what kind of policymaking solutions will help them to successfully overcome it.Design/methodology/approachTo gather data, the authors interviewed SMTEs in the Bodrum area – one of the most elite and exciting destinations for foreign travelers in Turkey. Semi-structured interview method was used, and questions for data collection focused on three key areas: (1) impact of COVID-19 on SMTEs, especially in terms of cash flow and other problems, (2) government incentives and (3) business strategies to cope with the crisis.Findings(1) Even a year and a half into the pandemic, despite government relief efforts, vaccination programs, the easing of lockdown and travel restrictions, survival is still the main concern for SMTEs. (2) Although they do not have enough resources, these entrepreneurs have energy and motivation, are optimistic about the future and are investigating new opportunities by capitalizing on their “strategic flexibility”, an intrinsic strength of SMEs. (3) Recovery is going to take a long time, and government support, however crucial in the interim, cannot replace the pre-crisis conditions that are anxiously awaited by these businesses.Research limitations/implicationsOne of the main limitations of this study is that the gathered research data are localized to one destination in Turkey, the Bodrum area. In that respect, it is difficult to hypothesize the degree to which the resulting data can be generalized to other areas of Turkey and the rest of the world. Future work is required to provide greater insight into how to be prepared effectively for this type of crisis. Therefore, further research should be undertaken to investigate tourism and hospitality industry in the whole country and to compare findings to those of other cities and regions. An especially important issue for future research that would yield insight and practical implications worldwide is comparison of findings across countries.Practical implicationsThe impact of COVID-19 is challenging all SMTEs’ conventional business models. Each business needs to evaluate its own internal and external conditions, secure required financial resources necessary for survival and sustainable business strategies for post-COVID-19 era. Besides short-term survival thinking, they also look for long-term business strategies both saving, investing, innovation and diversification. They are also on the look-out to seize any new opportunities presenting themselves as well as for any additional governmental support.Originality/valueThis paper offers a systematic approach toward understanding the realities of SMTEs in the midst of crisis by focusing on their short-term survival and long-term sustainability responses against COVID-19. It also brings practical experiences of industry participants and opinions of industry experts to academicians, practitioners and policymakers, shedding light on challenges faced by SMTEs.

Prioritising COVID-19 Recovery Solutions for Tourism Small and Medium-sized Enterprises: A Rough Best-Worst method Approach

ABSTRACT Tourism was always one of the most lucrative industries in the service sector. However, with the emergence of the COVID-19 pandemic, the tourism industry faces serious challenges. Consequently, the small and medium-sized enterprises (SMEs) active in this industry experienced severe losses. To help the tourism SMEs, this paper aims to identify and prioritise recovery solutions. To this end, first, 21 solutions were identified using secondary data by reviewing the related literature and were classified into five main categories, namely operations, marketing and customer relations, human resources, financial, and communication solutions. The solutions then prioritised using rough Best-Worst method. Results showed that financial solutions are the most significant whereas communication solutions are the least important amongst the five main solution categories. Moreover, reducing costs, developing automation technologies and innovative business models, and applying for government support and loans are the most vital COVID-19 recovery solutions for tourism SMEs, respectively.

The Effect of Electronic Marketing on the Quality of Tourism Services in Libya

The paper investigates enterprises in the Libyan tourism industry and their perception of the role of e-marketing in developing the industry. It considers enterprises that do not apply e- marketing, the problems they face and the benefits they would gain from an e-marketing programme. In relation to this the importance of e-marketing and the extent to which theory is followed is examined. The paper explores what should be done to develop e-marketing for tourist enterprises and how to implement strategic plans for the industry to increase its market share to enable it to compete in the international market place. The tourism industry is important to Libya’s economy and greater consideration should be given to its development and, in particular, to e-marketing. This is especially the case for small and medium-sized tourism enterprises (SMTEs) since most industrial sectors depend on these composing 50% privately owned and the rest full or part government owned.

Tourism SME sustainability social and economic challenges during pandemic: cases of Russian Federation, Georgia and Latvia

Until 2020, the tourism industry was characterized by a growth rate, the statistics highlight that globally 2019 was the tenth year with a consecutive annual growth. However, the Covid-19 pandemic marked a major turning point in the development of tourism, instead of tourism overdevelopment, the underdevelopment issues appeared in front pages of the industry news. The effects of the pandemic are intensified by the fact that tourism is a labour-intensive industry and that most companies in the sector are SMEs (small and medium sized enterprises). At this time, it is crucially important to look at sustainability issues, therefore the aim of this study is to analyse the social and economic dimensions of sustainability for tourism SMEs. Descriptive statistics as well as qualitative research methods were used to study the challenges posed by the pandemic, in-depth interviews were conducted with tourism SMEs from three different countries. The conclusions show the situation from an enterprise perspective in Russian Federation, Georgia and Latvia.

Crisis Management Practices in Tourism SMEs During the Covid-19 Pandemic

Abstract Background and purpose: This study examines crisis management practices (CMPs) for micro, small, and medium-sized enterprises (SMEs) in the field of tourism during the global coronavirus (COVID-19) pandemic. The purpose of this study is to analyse how tourism SMEs reacted to the crisis caused by the pandemic. The present research aims to determine which operational CMPs were deployed by tourism SMEs to minimize the impact of the crisis. Design/Methodology/Approach: This study focuses on the following types of tourism SMEs – lodging facilities, food and beverage (F&B) facilities, and tourist agencies (TA). A total of 574 valid online questionnaires were obtained from SME managers. The structured questionnaire included 27 CMPs belonging to the four dimensions of crisis management – workforce, cost control, organizational support and marketing CMPs. Exploratory factor analysis and the non-parametric Kruskal Wallis H test and Mann-Whitney U test were used to investigate SMEs response to the crisis. Results: Results indicate that SMEs primarily focus on the following CMP dimensions (respectively): workforce, cost control, organizational support, and promotional and customer-related marketing practices. Results show that there are statistically significant differences in the usage of different CMPs among the different types of SMEs. Conclusion: The use of selected variables enables an internationally comparable benchmarking process and facilitates the improvement of tourism SMEs crisis management. The conclusion provides suggestions for future research and useful information for scholars, policy makers, and tourism managers.

The competitiveness of small and medium enterprises in the tourism sector: the role of leadership competencies

PurposeThis research aims to adopt competitiveness theory to analyse the effects of leadership competencies on the competitiveness of small and medium-sized enterprises (SMEs) in the tourism sector.Design/methodology/approachThis research collected data from 200 participants, who are in management positions of tourism SMEs in Vietnam. Structural equation modelling was applied.FindingsThe results indicate satisfactory reliability and validity of the constructs and support for two models within a structural equation modelling to evaluate the influence of leadership competencies on the competitiveness of SMEs. The data from both customers and competitors show that the competitiveness and the performance of the enterprise are affected by hands-on experience; relationships building competencies; strategic vision; operations management competencies. Furthermore, customers also value professional knowledge of the enterprises' leaders.Practical implicationsThe study suggests that the government agencies and tourism SMEs themselves should focus more on leadership. Training courses, exchange programs, seminars and workshops should be provided for SMEs leaders to improve their leadership competencies.Originality/valueThe research findings provide a more comprehensive view of internal and external factors affecting the competitiveness of SMEs in the tourism sector in Vietnam. This also contributes to competitiveness and leadership research by presenting the positive linkage between leadership competencies and the competitiveness of SMEs.

The interplay effects of skill-enhancing human resources practices, customer orientation and tourism SMEs performance

PurposeThe purpose of this paper is to examine the interplay of skill-enhancing human resources practices, customer orientation (CO) and tourism small- and medium-sized enterprises (SMEs) performance indicators.Design/methodology/approachData for 194 valid cases are gathered through face-to-face techniques in Albanian tourism SMEs. Structural equation modeling is implemented to analyze data and test the hypothesis proposed.FindingsOverall, both skill-enhancing human resources (HR) practices (i.e. recruitment/selection and training) are not associated with SMEs performance. Results suggest that using HR selection/recruitment practices are not associated to SME’s CO. Contrary, implementing skill-enhancing HR training practices is significant for SMEs strategy to focus and address customers’ wants and needs. Finally, it was found that the CO mediates the relationship between skill-enhancing HR training practices and performance, but this was not true on the skill-enhancing HR recruitment/selection practices-performance relationship.Originality/valueThis study makes contributions by further informing the debate about the direct and indirect link between skill-enhancing HR practices and performance. Additionally, it examines the precise role of the skill-enhancing HR practice on SMEs’ culture and or strategy to create value for customers.

Leaders influencing innovation

PurposeInnovation is ever more critical for sustainable business performance in the contemporary, global economic and social context. Small- and medium-sized enterprises (SMEs) are arguably well positioned to innovate through their potential for rapid adjustment. Although leadership and organizational climate have been identified as playing a key role in innovation, little is known about whether such influences play out in SMEs. The aim of this study is to explore how leaders shape the organizational climate of their firms to enhance innovation.Design/methodology/approachThe article presents findings from semi-structured interviews conducted with 20 CEOs of SMEs in the Vietnamese tourism sector.FindingsThe findings indicate that SME leaders in the tourism sector influenced an organizational climate that provided for autonomy and supported innovation through a number of leadership approaches. They also used daily interaction-based practices to drive the innovative behaviors of employees and developed reward systems to encourage innovation in their organizations.Research limitations/implicationsThis study explored leaders' approaches toward developing an organizational climate to stimulate innovation in tourism SMEs. Where leaders share frequent communication and knowledge with their subordinates, they perceive a climate for innovation developments, which stimulates innovation in tourism SMEs.Practical implicationsThe study provides implications for managers to improve creativity and innovation in firms through the development of reward and incentive systems along with leadership and team development programs.Originality/valueThis study describes how different leader approaches affect innovation through orientating the organizational climate and business processes within their firms toward encouraging staff to initiate and try out new ideas.