Performance determinants in small and micro tourism business

Abstract

The purpose of this study was to identify those factors that are supposed to be the most important in terms of small business success in tourism industry. The empirical data is collected within one region in Finland. The respondents were asked to evaluate the importance of the given factors for the firm's success and how highly the respondent evaluated the company's expertise in each factor in their operations. Questionnaires were sent by mail to a total of 214 tourism businesses. The final response rate was 43% (92 businesses). According to the analysis of the data, the respondents emphasise the importance of customer orientation, good skills in leadership, internal marketing and a good reputation of the firm and the product. The impact of external advice (incubators, consultants, research organisations) was evaluated as the least important factor of success. So, market orientation seems to play a key role in the performance of small and micro tourism firms. Customer orientation is also well mastered according to the businesses. The greatest development needs would be in the areas of price and accessibility, as well as in customer orientation. The results of this study indicate that there are no statistically significant differences in the views held by slowly or fast growing tourism businesses regarding the importance of the success factors. The same factors are considered important and less important in both slowly and fast growing businesses. Neither were there any statistically significant differences in these businesses as to the expertise in these success factors.

Citation

Komppula, R. and Reijonen, H. (2006), "Performance determinants in small and micro tourism business", Tourism Review, Vol. 61 No. 4, pp. 13-20. https://doi.org/10.1108/eb058482