Search Results (19)

Digital transformation has become a strategic imperative for micro and small enterprises (MSEs) in emerging economies, yet the mechanisms linking digitalization to performance outcomes remain underexplored. This study examines how the strategic emphasis on digital transformation and the breadth of technology adoption influence firm performance among MSEs in Bhutan. Drawing on an integrative theoretical framework combining diffusion of innovations theory, the resource-based view, and institutional theory, survey data from 217 MSEs were analyzed using regression and interaction modeling techniques. The findings indicate that firms with stronger digital strategic emphasis adopt a broader range of technologies and achieve superior performance. However, unstructured or excessive knowledge sharing negatively moderates these relationships, potentially creating cognitive overload and impeding digital strategy execution. Furthermore, tourism enterprises exhibit significantly higher levels of digital engagement compared to non-tourism counterparts, highlighting the role of sector-specific institutional pressures. By uncovering the systemic dynamics between strategic orientation, technology adoption, and knowledge flows, this study contributes to a deeper understanding of how digital transformation processes can be optimized in resource-constrained environments. These findings not only offer practical insights for enhancing digital readiness and organizational resilience among small enterprises but also contribute to the broader theoretical discourse on how strategic orientation and contextual moderators shape the effectiveness of digital transformation in emerging markets. Full article

Research on the effects of digital transformation in micro and small enterprises (MSEs) is growing, yet remains underdeveloped, particularly in the context of emerging economies. While previous studies highlight the performance benefits of digital readiness, they often overlook how sector-specific challenges influence these outcomes. This study investigates the relationship between digital readiness and firm performance among MSEs in Bhutan, with a focus on the moderating roles of internal (operational) and external (supply chain) issues. Drawing on data from 217 survey responses collected from firm owners and operators, this study compares tourism and non-tourism sectors to reveal sectoral asymmetries in digital transformation outcomes. The results show that digital readiness is positively associated with firm performance across both sectors. However, the strength of this relationship is differentially moderated by contextual challenges: external issues negatively moderate the digital readiness–performance link in the tourism sector, while internal issues play a similar moderating role in the non-tourism sector. Additionally, firms in the tourism sector report higher levels of both digital performance and satisfaction with digitalization than their non-tourism counterparts. These findings contribute to the Diffusion of Innovation Theory by emphasizing the contingent and asymmetric nature of digital adoption effects across industry sectors. This study offers practical implications for managers and policymakers by underscoring the need for sector-sensitive digital strategies and support mechanisms. Full article

Tax compliance and avoidance are critical issues for governments and businesses worldwide, especially as businesses often use legal methods to minimize taxes, which can impact public revenue and equity within the tax system. This study focuses on understanding the factors influencing tax avoidance behaviors among SMEs in Greece’s tourism sector, a sector that has received limited research attention. To this end, a quantitative cross-sectional design was employed, using a structured questionnaire to explore potential factors influencing tax avoidance behavior. Data were collected from 534 SME managers and analyzed using Structural Equation Modeling (SEM) to assess the impact of key factors and their interrelationships, including coercive power, digital transformation, tax knowledge, firm performance, and perceived fairness, on tax avoidance. In addition, corporate social responsibility (CSR) was included as a moderator variable, while coercive power and digital transformation were assessed as mediators. Furthermore, Multi-Group Analysis (MGA) was conducted to explore the differences between small and medium enterprises, as well as different ownership structures. The results indicate that all key determinants, except perceived fairness, are significantly and positively related to tax avoidance intention. Additionally, it was revealed that coercive power increases tax avoidance through firm performance and tax knowledge, while digital transformation mediates the influence of firm performance on tax avoidance by curtailing avoidance intentions. While CSR mitigates the negative influence of coercive power, digital transformation has a dual role: that of promoting transparency and strategic efforts to reduce the tax burden. These findings have important policy implications, as policymakers seek to promote digital adoption and enhance CSR engagement while formulating specific regulatory strategies to reduce tax avoidance among SMEs. Full article

Investigations on industrial parks appear to be slim with inadequate statistical data in spite of their growing connectedness with sustainability and the importance of their establishment. They were required to curb the overarching challenges of small and medium-scaled ventures (SMVs). To revert the status quo and justify the call for the timeliness of empiricism in this regard, the study investigated the extent to which industrial parks (IPs) impact the sustainability of SMVs. Specifically, it hypothesizes that competition among IP firms affects innovativeness and that government tax incentives impact the cost efficiency of SMVs in Enugu State in Nigeria. Empirical data for the study’s analyses were gathered from the distributive trade, manufacturing, agriculture and allied products, and commerce and tourism sub-sectors of SMVs in the Enugu metropolis, Enugu State, Nigeria. Adopting a descriptive survey design, 711 staff members from the aforementioned SMV sub-sectors in Enugu State, Nigeria were included as the research population. The regression analytics tool was used to analyze the data, following collection, using a structured questionnaire. The study’s results indicate that competition had a significant positive impact on SMVs’ innovativeness in the Enugu metropolis (R = 0.575, β = 0.283, t = 6.794, p = 0.000 < 0.05), while the government’s tax incentive had a significant positive impact on SMVs’ cost-effectiveness (R = 0.267, β = 0.213, t = 6.472, p = 0.000 < 0.05). Therefore, the study concluded that the pursuit of sustainability stimulated competition, resulting in higher levels of innovativeness, while government support in the form of tax incentives helped to lower SMVs’ costs of operating in the parks. As a result, SMVs can maintain viability through a well-planned structure of the industrial park. Full article

This study aims to explore tourism sector small and medium-sized enterprises’ (SMEs) coopetition and its antecedents, and the consequences of sustainable competitive advantage in complex institutional contexts through the integration of institutional theory, social exchange theory and commitment theory. Through a field survey in the Greater Bay Area in Southern China, this study identified the structural links between tourism SMEs’ institutional environment, economic benefits and their commitment to a regional framework, on the one hand, and their coopetition and the effect on their sustainable competitive advantage, on the other, along with a comparative analysis based on the different social system regarding this structural model within this region. Full article

Background: There has been a strong focus on environmental sustainability in the aquaculture industry, but we do not know how firms in this industry emphasize the issue compared to firms in other industries. Methods: Responding to this research gap, we compared survey data of Norwegian firms in the (1) aquaculture industry with those in the (2) manufacturing industry, (3) the consulting, finance and insurance industry, and (4) the hospitality, tourism and culture industry. Results: We found that firms in the aquaculture industry emphasize environmental sustainability more than those in the other industries do. Likewise, firms in the aquaculture industry emphasize social sustainability more than those in the other industries do, but the difference is less marked. Across industries, knowledge-intensive firms emphasize environmental sustainability and social sustainability to a lesser extent. Additionally, firms with local or regional major ownership emphasize social sustainability more than those with international major ownership do. Conclusion: Firms in the aquaculture industry have a relatively strong emphasis on environmental and social sustainability, which may be due to the industry’s environmental challenges. Similarly, aquaculture firms have a relatively strong emphasis on social sustainability, which may be due to the industry’s geographic and sociocultural proximity to numerous small local communities. Full article

The current need for territories and societies to grow is based on the Sustainable Development Models as well as the United Nations (UN) Agenda for 2030 Sustainable Development Goals (SDGs). In that case, such new forms of tourism development imply creating and upgrading critical infrastructures, facilities, equipment, or differentiated activities to bring clients who align with the desired Sustainable Development Models and SDGs. In this regard, the thematic literature provides evidence that some tourism typologies (nature-based, rural, culturally-based creative tourism) play a critical role in attaining sustainable regional development. Therefore, this paper aims to unfold what can be learned from the pilot projects implemented in the Azores region aimed toward the so-desired regional sustainability. Contextually, the obtained results ask for the regional leaders to consider encouraging entrepreneurship associated with small and medium-sized firms; fostering the diversity of touristic offerings; designing guidelines that follow sustainable development models and the SDGs; or creating meaningful investments in the conservation and protection of cultural heritage, as well as the Azorean endogenous resources. Full article

This study explores the psychological factors affecting small tourism firm (STF) owners’ decision making about reopening businesses in the midst of COVID-19 based on protection motivation theory and the theory of planned behaviour. The data were collected from a sample of 300 STFs in the Ancient City of Pingyao when the lockdown policy was lifted in China. A symmetric approach, i.e., partial least squares structural equation modelling (PLS–SEM), and an asymmetric model, i.e., a fuzzy set/qualitative comparative analysis (fsQCA), were used to analyse the net effect of the psychological determinants and correlations between the variables leading to high and low behavioural intentions to reopen businesses. The results indicate that social norms and perceived business uncertainty were the critical factors influencing the intention to reopen. The pathway (low perceived risk of infection, low perceived business uncertainty, high reward, high response efficacy, high self-efficacy, high attitude, and high subjective norm) was only one configuration for a high intention to reopen. The study results are discussed based on dual-process theory, and practical implications are offered to guide STF recovery amid COVID-19. Full article

The global business scenario seems to be gloomy due to the economic uncertainty caused by the COVID-19 pandemic. The COVID-19 pandemic has impacted many economic sectors and a country’s national GNP, including the tourism industry. The question is whether the influencing factors for firms involved in the tourism industry, especially in developing countries, ensure their future survival. The main aim of this paper is to examine the role of internal resources and external environmental factors on the firm performance of small–medium enterprises (SMEs) in the tourism industry, with a specific focus on SME hotels. Based on a survey carried out among hotel owners or key managerial staff in Saudi Arabia and using partial least squares (PLS), the study aimed to attain the objective of this study. Results from the statistical analysis indicate that both internal and external environmental factors have a positive impact on the performance of SME hotels. The results also revealed a more significant impact from the external environmental factors in influencing firm performance than internal resources. Implications, limitations, and recommendations for future scientific investigation are put forward. Full article

Sustainability in tourism, hospitality, and leisure is a long-standing topic of growing interest. Research in the field of tourism has accelerated over the past decade. The goal of this meta-analysis is to categorize recent research in tourism sustainability to identify patterns and trends, which could help us understand where the field is currently conducting research and where more work may be needed. Over 800 relevant articles published in major tourism journals during a three-year period (2019–2021) were included in the analysis; however, despite the increase in volume of published tourism sustainability research, this quantity was less than 4% of all publications in the same journals. Four over-arching pillars of sustainability research themes emerged (social, economic, ecological, and institutional) with numerous sub-categories within each. The majority of tourism sustainability research occurred in the social and economic arenas. Much more research is needed in the other three categories. The greater part of the recent advances in tourism sustainability appears to be driven by small- and medium-sized tourism firms. The impact of the COVID-19 pandemic on tourism sustainability is only beginning to be understood. Tourism business leaders have an opportunity to strengthen and integrate their use of sustainability as they work to rebuild consumer trust in travel services. Full article

The restaurant industry is quite similar across borders. It is a labour-intensive industry that is important for tourism and employment. It consists mainly of many small businesses that are regionally dispersed. There are many studies that have analysed this sector. However, rather few articles have focused on the dynamics of growth and profit. The purpose of this paper is to apply the theory of profit persistence and the law of proportionate effect (LPE) to Norwegian restaurants by using publicly available public panel data from 2010 to 2019. The sample includes 866 restaurants. One important finding is that Gibrat’s law (LPE) does not seem to hold, meaning the growth is not independent of the size of the firms. Small businesses grow faster than the others, and they are also more profitable. There is some degree of profit persistence in the restaurant industry. Profitability is negatively linked to debt ratios but positively related to working capital. The study shows there is a trade-off between size and profit. These findings are useful for the industry and for others (public planning, lenders, and more). Full article

The expansion in commodification through tourism and the transformation of communities and heritages into destination attributes have become the centre of tourism research facing the COVID-19 crisis. Since small family businesses comprise the majority of the tourism industry, theories and practices on surviving the crisis are urgently required. This research attempts to clarify the level of business resilience during the COVID-19 lock down when business can only be conducted at home with very few visitors. It provides insights on family businesses in Yunnan, China, moving ahead with ethnic tourism against the lockdown and shutdown of tourism industry. Data were collected through in-depth interviews. The researchers invited previous research respondents who agreed to continue for online interviews. Eight interviewees were selected by purposive sampling. Although the COVID-19 crisis was unexpected, external shocks need to be taken into account for business planning. Tourism will not necessarily grow massively in the total number of visitors as the destinations have become saturated. The diversification of a tourism business facilitates the resilience of the firm by venturing into other areas of practice, including taking advantage of online platforms in selling local food and herbs, live broadcasting the local flora and fauna, teaching school children in making the traditional pickles, and other business extensions from tourism. Businesses are working together with other stakeholders in the effort of overcoming the COVID-19 crisis. Previous visitors from not only China but also overseas, who have kept in touch with the hosts in Yunnan, are becoming part of the supporting team for the business. However, there appears to be a lack of coordination in the community when businesses are isolated. There is a call for skills in using technology for online business, complementarity in the community, and policy support in the ethnic family businesses. Small family businesses in ethnic Yunnan are actively adapting and progressing despite the odds. They are resilient in times of crisis, with a strong presence of entrepreneurship, diversification of activities, re-organising resources, and digital literacy. The research sheds light on how community-based small family businesses surviving the crisis through resilience, entrepreneurship, and celebrating their ethnic cultures in tourism. Small-scale tourism closely linked with the community, family, and people may provide more promising prospects for tourism. Full article

This study analyzes business performance through efficiency score estimation in two sustainable tourism models: cultural tourism and rural tourism. The study uses microeconomic data (microdata) of Spanish firms with different characteristics in terms of size, region, location and financial variables. Using multistage modeling (Data envelopment analysis, DEA, non-parametric frontier and non-parametric tests), the main results show that the average efficiency is higher for rural tourism destinations than for cultural tourism destinations. Similar to other tourism industries, efficiency results by geographical and regional destination confirm that location is a driver of the efficiency levels in rural and cultural tourism destinations. Furthermore, the results do not support the scale economies hypothesis: the average efficiency is higher for very small firms compared to other firm sizes, although the average efficiency for large firms is higher than that for medium-size firms. Regarding dynamic efficiency, the results reveal slight variations among the years examined, but the differences are not statistically significant. Finally, the study sheds light on the link between the efficiency of rural tourism and sustainable practices as the investment in environmental protection developed by regions during the period. Full article

In the settlement network of Italian small towns (the so-called “borghi”, with a population ceiling lower than 5000 inhabitants), not lacking in discontinuities and patches, a “common thread” is increasingly noticeable, which allows to look optimistically beyond several weaknesses (economy depending on a relatively unprofitable or declining agriculture, social and economic stasis, demographic decline and consequent contraction of public and private services, hydrogeological instability, etc.): we are talking of the firm, pigheaded determination of an increasing number of local communities to become sustainable and responsible realities, get involved, and undertake a process of “hot authentication” of their milieu. Since 2013, such resilient attitude is at the heart of the National Strategy for Inner Areas (SNAI, Strategia Nazionale per le Aree Interne) aimed at promoting coordinated, multi-scalar projects of self-enhancement; in April 2019, the above innovative form of territorial planning was selected by the European Parliament as a model for the 2021–2027 programming period of the European Regional Development Fund (ERDF).This paper reviews the original and creative bottom-up enhancement process being implemented in several towns of the “Monti Dauni” sub-region, a pilot marginal area identified by Apulian regional authorities within the SNAI. In these small towns, local players aim at maximizing the opportunities of sustainable, experiential tourism by offering an uncontaminated environment, ancient knowledge, genuine flavours and deep emotions to all visitors who wish to achieve a deeper knowledge of the territorial identity instead of being mere spectators, by adopting an active and engaged attitude. Full article

This paper analyses the advantages of membership in a cluster in the effective use of digital marketing tools and in a general way, in the performance, especially for the small and medium firms in underdeveloped regions. For this purpose, a case method research was conducted in the tourism sector, specifically in the hotels in the La Guajira Department, Colombia, where there is a regional tourism cluster. The tourism sector especially depends on digital marketing and the proper use of available digital marketing tools play an essential role in the performance. To conduct the study, 40 hotels in La Guajira were analyzed, whether or not they were members in the cluster. The obtained data were assessed by means of fuzzy set Qualitative Comparative Analysis to check the hypotheses. The results reveal the most effective combinations of digital marketing tools and the activities in which especially small and medium firms must engage in the cluster to obtain better results. Full article