Achieving sustainable competitiveness of tourism dynamics with resource-based view

Abstract

Purpose

This research aims to model the existing system of destination competitiveness, identifies leverage points and develop revised model to achieve sustainable competitiveness.

Design/methodology/approach

System dynamics is used as method of modeling destination competitiveness. Structure of model utilizes 9-factor model as reference. Leverage points are identified using system archetypes. Revised model is built with resource-based view (RBV). Case study was conducted in Samosir, Toba Lake. Data used are secondary data and results of in-depth interviews.

Findings

There are 3 sub-systemic characteristics (archetypes) that hinder competitiveness. They are limit to growth quality gap, fix that fails infrastructure and promotion, tragedy of common lake pollution. Destination was unable to meet tourist expectations. Tourists spending decreased, demand size was small. Industries are unable to increase capabilities. Professionals, entrepreneurs, local workers, supporting industries are less interested in entering industry. Government policies do not match with destination's needs. Lake as main attraction is getting polluted. To achieve sustainable competitiveness, destination must utilize their valuable, rare and inimitable (VRI) resources and capabilities to design unique experiences for tourists, hence sustainable.

Practical implications

Government policy should be shifted to prioritizing development of valuable, rare, inimitable and well-organized resources and capabilities of destination, to produce unique tourist experience and achieve sustainable competitiveness.

Originality/value

Methods and findings, combining system dynamics, system archetype, 9-factor model and RBV to achieve sustainable competitiveness is novel and can enrich tourism sustainable competitiveness theory/concept.

Citation

Simarmata, E., Kusumastuti, R. and Wijaya, C. (2024), "Achieving sustainable competitiveness of tourism dynamics with resource-based view", European Journal of Innovation Management, Vol. 27 No. 3, pp. 1001-1023. https://doi.org/10.1108/EJIM-07-2022-0365