Short answer
Prioritize investments in both the physical environment of a tourism offering and the skill development of the team to build a sustainable competitive advantage.
- Field
- Innovation & Markets
- Source
- Cogent Business & Management (2023)
- Method
- Quantitative analysis using structural equation modelling.
- Sample
- 310 participants
- Evidence
- Strong effect
Investing in staff skills and maintaining high standards for physical locations are critical for tourism SMEs to thrive amidst competition. This innovation & markets research insight is drawn from a 2023 study published in Cogent Business & Management. Using Quantitative analysis using structural equation modelling. with 310 participants, researchers explored how this design variable affects real-world outcomes. The key design takeaway: Prioritize investments in both the physical environment of a tourism offering and the skill development of the team to build a sustainable competitive advantage.
Entrepreneurial Competency and Site Maintenance Drive Competitive Sustainability in Tourism SMEs
Investing in staff skills and maintaining high standards for physical locations are critical for tourism SMEs to thrive amidst competition.
Cogent Business & Management · 2023
Key Findings
- 01Price sensitivity positively affects competitive sustainability.
- 02Site maintenance positively affects competitive sustainability.
- 03Entrepreneurial competency positively affects competitive sustainability.
Application
Design takeaway
Prioritize investments in both the physical environment of a tourism offering and the skill development of the team to build a sustainable competitive advantage.
How to apply
When developing new tourism ventures or strategies for existing ones, ensure that plans include robust maintenance schedules for facilities and comprehensive training programs for staff, alongside a clear pricing strategy.
Project actions
- 01When researching a business, consider how both physical aspects and human skills contribute to its success.
- 02Think about how to measure 'competency' and 'maintenance' in your own design projects.
Method & Evidence
Variables
Strengths & Limitations
Strengths
- +Uses a robust statistical method (PLS-SEM) for analysis.
- +Investigates a relevant and timely topic for developing economies.
Limitations
The study focused on specific factors; other elements like marketing, innovation, or external economic conditions might also play a role.
Reliability & validity
The use of PLS-SEM on a substantial sample size suggests good internal reliability and validity for the statistical model. However, the construct validity of 'entrepreneurial competency' and 'competitive sustainability' would depend on the specific measures used in the questionnaire.
Think critically
How might the relative importance of these factors (price, maintenance, competency) shift in different types of tourism businesses (e.g., luxury hotels vs. budget hostels)?
Design Principles
"A holistic approach to business development, integrating operational excellence (site maintenance) with human capital development (entrepreneurial competency) and market awareness (price sensitivity), is essential for sustained competitive advantage."
In competitive markets, particularly in the tourism sector, the tangible aspects of a business (like site quality) and the intangible skills of its people (entrepreneurial competency) are key differentiators. Focusing on these areas can lead to a stronger market position and long-term viability.
What This Means for Your Design
To make a tourism business successful in the long run, it's important to keep the place looking good, train the staff well so they can be creative and solve problems, and be smart about pricing.
How to use in your project
- 1.This research can inform the justification for design choices that enhance user experience through improved site design or staff training, linking directly to business objectives.
Add to My Project
Quick Cite
Paragraph starter
This study highlights that for tourism SMEs, competitive sustainability is significantly driven by factors such as price sensitivity, site maintenance, and entrepreneurial competency. These findings suggest that design interventions focusing on enhancing the physical environment and empowering staff with relevant skills can directly contribute to a business's market advantage and long-term viability.
Source
Cogent Business & Management
Driving factors to competitive sustainability of SMEs in the tourism sector: An introspective analysis
journal · 2023
View sourceQuestions About This Research
- What does the research say about entrepreneurial competency and site maintenance drive competitive sustainability in tourism smes?
- Prioritize investments in both the physical environment of a tourism offering and the skill development of the team to build a sustainable competitive advantage. Evidence: Cogent Business & Management (2023).
- Why does "Entrepreneurial Competency and Site Maintenance Drive Competitive Sustainability in Tourism SMEs" matter for design?
- In competitive markets, particularly in the tourism sector, the tangible aspects of a business (like site quality) and the intangible skills of its people (entrepreneurial competency) are key differentiators. Focusing on these areas can lead to a stronger market position and long-term viability.
- How can designers apply this research?
- Prioritize investments in both the physical environment of a tourism offering and the skill development of the team to build a sustainable competitive advantage.
- What were the main findings?
- Price sensitivity positively affects competitive sustainability.. Site maintenance positively affects competitive sustainability.. Entrepreneurial competency positively affects competitive sustainability.
- What research method was used?
- Quantitative analysis using structural equation modelling. with 310 participants.
- How strong is the evidence?
- Evidence strength is rated Strong effect, based on a 2023 journal from Cogent Business & Management.
- What should I do differently in my next project?
- When developing new tourism ventures or strategies for existing ones, ensure that plans include robust maintenance schedules for facilities and comprehensive training programs for staff, alongside a clear pricing strategy.
- What are the limitations?
- The study's findings are specific to the context of Ghana and may not be directly generalizable to all developing economies or different market conditions.