Value Proposition to Tourism Coopetition

Cover of Value Proposition to Tourism Coopetition

Cases and Tools

Synopsis

Discover the transformative power of ‘coopetition’ in the dynamic world of tourist organisations, where inclusive development takes centre stage. Drawing on the work of a range of global contributors, the editors examine how dyadic behaviour is transforming the tourism sector.

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Table of contents

(20 chapters)
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Abstract

This chapter is the introduction to this book. Thus, it leads the reader to the coopetition theme as a value proposition for developing the tourism sector. We synthesise the coopetition mindset to tourism and show why this behaviour became a paradigm. The chapter provides an overview of this book's content, highlighting each chapter's singularity and supporting the statement: we live in the coopetition era.

Part One Co-boost the Tourism Destination: Public Policies to Foster Coopetition Networks

Abstract

The chapter constitutes a conceptual paper aimed at furnishing a roadmap for the implementation of a coopetition strategy within tourism destinations. This endeavour was prompted by numerous inquiries from industry practitioners seeking guidance on integrating coopetition into their operations. The roadmap delineates six sequential steps for establishing a robust coopetition network, complemented by a toolkit designed to oversee the implementation process and its ensuing outcomes. Key components of this toolkit include the Coopetition Value Proposition, Coopetition Players Mapping and the Coopetition Toolbox, each serving as indispensable resources for navigating the intricacies of coopetition strategy in the tourism sector. In amalgamating theoretical insights with practical applications, our approach not only deepens comprehension of coopetition within the context of strategic management but also equips stakeholders with the requisite tools to harness coopetition's potential for generating social, economic and environmental value. Furthermore, our methodology transcends the boundaries of the tourism industry, offering a versatile framework adaptable to diverse sectors. Through this concerted effort, we endeavour to facilitate the transition of tourism destinations towards the coopetitiveness paradigm, wherein collaboration and competition intertwine to propel sustainable growth and innovation. Ultimately, our chapter serves as a guiding beacon for tourism stakeholders, offering a structured pathway towards embracing coopetition as a cornerstone of strategic management, thus fostering prosperity and resilience amidst evolving market dynamics.

Abstract

Coopetition is a phenomenon characterised by the simultaneous presence of cooperation and competition within a networked relationship. The current body of literature provides real instances of coopetitive networks within the tourism sector. Conversely, many countries possess the potential to initiate new examples. This research aims to identify European countries that are externally heterogeneous but internally homogeneous and thus point out competing countries that could cooperate in the tourism sector. This study contributes to the literature on cross-border tourism coopetition from a theoretical perspective of possible cooperation among 32 competing European countries using existing secondary data from the Travel and Tourism Development Index (TTDI). The results of cluster analysis show a six-group solution. Although there are many challenges and issues, the positive outlook lies in the potential for coopetition among analysed countries, which could contribute to regional tourism growth. This study proposes several recommendations essential to cross-border tourism coopetition.

Abstract

Coopetition refers to the collaboration or cooperation of competitors with each other with the objective to create value for individuals, firms and society. This chapter provides an overview and taxonomy of different types of value generated by coopetition by considering seven types of capital: financial, manufactured, intellectual, human, social, natural and cultural. It goes beyond the current literature on value creation and appropriation in the tourism industry. It offers a framework for future research on value creation from coopetition and how the interplay of capital in the tourism destination generates a blend of values. These values can be appropriated at common, private, privately captured common or public levels. The results showed that tourism coopetition is an essential strategy for the host society, as it can generate socio-economic, socio-environmental and socio-cultural value.

Abstract

Emerging debates in public policy emphasise sustainability and the role of the Creative Economy in advancing the UN's Sustainable Development Goals within UNESCO Creative Cities (UCC). However, research on ‘coopetition’ – a blend of cooperation and competition – remains sparse within these global networks. This study investigates coopetition under Multilevel Governance in UNESCO-designated tourist destinations, offering a comprehensive examination of its dynamics through a multidimensional, jurisdiction-spanning lens. We uncover disparities within Multilevel Governance structures using a qualitative methodology, including documentary and field research with non-participant observation and thematic content analysis. While cooperation strategies are intended to foster reciprocity among social actors and their organisations, competition prevails, resulting in conflicting goals. This study concludes that the UCC label while promoting coopetition, risks reducing these cities to mere ‘brands’, challenging their legitimacy. This study underscores the complexity of integrating coopetition within UCC governance and its implications for their identity and sustainability objectives.

Abstract

Most industry players in the tourism sector are small-scale businesses that are prone to failure, especially within five years of establishment. Coopetition can be an innovative alternative strategy that enables small-scale business owners to compete and cooperate in a destination. The qualitative method comprises interviewing business owners and adopting the institutional analysis and development framework for small-scale accommodation in Indonesia and Malaysia. Findings highlight those geographical settings, values and norms as the main contributions of human practices shaping the culture. Moreover, the collectivist attitude provides more opportunities for coopetition, as unity is the main priority of society. The case in Indonesia reveals that local institutions regulate the behaviour, whereas the case in Malaysia shows family kinship in business activities. In general, coopetitive behaviour starts from product marketing to the customer service stage by competing personally but sharing resources if the demand is higher than capability. Accommodation owners can gain guests individually, and if during service, the number of customers exceeds the capacity of the accommodation, the owner will share the guests with other accommodation owners. The symbiosis relationship is where a win-win situation is preferable to ensure that a tourism destination can cater to more demand with limited resources. Although both cases practice coopetition based on the suitability of the cultural and local rules, the interpretation and approach differ.

Part Two Co-create Tourism Business and Products: Co-entrepreneurs Using Coopetition Strategies

Abstract

This chapter considers the role and features of co-location and coopetition in the framework of slow (city) tourism using the city of Rovaniemi as a case study example. Rovaniemi, as a tourism destination, contains three main service agglomerations: Santa Claus Village near the Arctic Circle and the Official Airport of Santa Claus, the City centre with three shopping centres and Ounasvaara sports centre, which together constitute, based on co-location, and intentional and unintentional coopetition, one attractive destination providing possibilities for tourism due to several services and activities of the area. Slow tourism is an important emerging tendency to enable the possibility of diminishing overtourism and rethinking the value(s) of local development. Through applying the concepts of slow into tourism city planning, the empowerment and well-being of local communities in increasingly popular global destinations like Rovaniemi are emphasised. Rovaniemi, the city now known as the hometown of Santa Claus, has multilevel coopetitive activities to create year-round locally engaging tourism in order to restrain the development of seasonal overtourism.

Abstract

This study examines the role of destination management organisations (DMOs) in fostering coopetition – the coexistence of cooperation and competition – within tourism destinations. Focussing on the governance exerted by these organisations, we analyse how formal and informal control mechanisms contribute to the development of tourism destinations as integrated products (coentrepreneurship). Utilising a multicase study approach and content analysis supported by MAXQDA software, we found that formal governance mechanisms, when supporting and developing informal mechanisms, enhance levels of coopetition at the tourism destination. This approach strengthens the vision of shared objectives among local businesses, creating an ideal context for coentrepreneurship. The findings highlight the significance of DMOs and both formal and informal mechanisms in the governance of network coopetition and its implications for coentrepreneurship, offering new insights into destination management.

Abstract

This chapter aims to present an aggregate index to measure the coopetition level of tourism destinations, a tool named the Local Coopetition Index (i-COOL). The index comprises 30 variables based on soft and hard data distributed in 7 factors: Co-location, Competition, Associationism, Cooperation, Strategic Management, Co-Entrepreneurship and Tourism Co-Production. The i-COOL has a math formulation that allows comparison of the coopetition levels among different destinations, cities, or countries. In this chapter, we present the results of an empirical application of the i-COOL in the context of two Brazilian cities, namely, Curitiba and Foz do Iguaçu. Findings showed the level of coopetition in the destinations and indicated the variables that destination managers should prioritise to improve tourism development. The i-COOL framework can be used as a monitor of tourism coopetition to support destination managers in improving competitiveness from the coopetition strategy.

Part Three Co-consolidate the Tourism Destination: Endogenous Resources and the Coopetition Behaviour at the Host Society

Abstract

The tourism sector has realised an increasing need to transition towards sustainability. As the sector comprises a high number of entrepreneurs and small- and medium-sized enterprises, it faces specific limitations, which include, amongst others, knowledge transfer, skills and technology, financial and policy support, customer acceptance, and cultural taboos. To overcome these limitations, the sector thrives on encouraging interaction between ecosystem participants. One of the strategies to encourage interaction between ecosystem participants is the application of coopetition strategies. Coopetition strategies combine the advantages of cooperation and competition to generate value and achieve fruitful collaboration. However, their implementation is still limited. The purpose of this chapter is to examine the potential and practice of coopetition strategies among SMEs in addressing sustainability issues. Therefore, the study explored 10 European reusable cup-sharing schemes based on their level of applying coopetition. In doing that, the study aims to understand the supporting characteristics of existing cup schemes. It seeks to develop a framework for different levels of coopetition in achieving sustainability in the tourism and hospitality sector.

Abstract

This research delves into the intricate dynamics of coopetition within the intersection of the wine industry and tourism. By bridging vitiviniculture and wine tourism, the study investigates both intentional and unintentional cooperation, associationism, and cluster effects. Employing bibliometric analysis provides insights that contribute to interdisciplinary understanding, laying the groundwork for future research. The study evaluates the impact of business ecosystems and competitive advantages on coopetition from a territorial perspective. It emphasises the strategic importance of coopetition as a dynamic interplay between collaboration and competition, fostering innovation and growth in vitiviniculture and wine tourism. By synthesising a diverse range of literature, the research unveils historical collaborative efforts and explores key concepts such as clusters and ecosystems. It concludes with a proposed model capturing coopetition layers, serving as a valuable tool for business and regional governance. This research enhances comprehension of the complexities within the wine business ecosystem, providing actionable insights for stakeholders and suggesting avenues for future studies, including the exploration of coopetition in shared wine territories.

Abstract

Our research aims to understand how coopetition can create barriers to tourism by focussing on the collective interests that seek to preserve the identity of a geographical indication (GI). We conducted a qualitative longitudinal study that analyses a Brazilian wine industry, specifically the Vale dos Vinhedos (a GI region in Southern Brazil), because it provides examples of leveraging coopetition to develop the area. The study was conducted over 10 years (2012–2022), collecting primary data from representatives of the Brazilian wine industry in 36 semi-structured interviews. Interviewees emphasised how the Vale dos Vinhedos vocation is founded on natural beauty and tranquillity, aiming to preserve aspects that value wine culture. The study found that wineries and formal institution agents established a coopetition strategy to stop uncontrolled expansion in real-estate development, blocking the entry of new ventures such as hotels and timeshares that could distort the region's character. Consequently, coopetition does not merely hinder the progression of tourism to real estate ventures; instead, it functions as an informal, and occasionally a formal, regulatory mechanism. While initially perceived as a drawback, upon examining the social, cultural, and economic advantages, this phenomenon emerges as a market control strategy that enhances the region.

Abstract

This research explores the paradigm of coopetition and the different theories that contribute to its evolution. The variation of cooperation and competition in a relationship depends on the resource flows identified in the literature. However, this research focusses on coopetition behaviours in the business world. Coopetition, simultaneous collaboration, and competition between firms, has emerged as a pivotal factor influencing organisational success in today's dynamic business environment. Based on game theory, the different types of competitive relationships between adversaries will also be presented in this chapter, where the interdependencies between the players and their choices to co-operate or compete are explored. Another perspective presented is how companies use game theory to achieve gains in both zero-sum and non-zero-sum games by changing the players, the perceptions of risk, the associated returns, and the rules and scope of the game. This chapter also will show the prisoner's dilemma applied to business practices. Finally, we present the ‘tit-for-tat’ theory of strategy. The conclusion underscores the need for organisations to navigate a delicate balance between collaboration and competition to thrive in a complex and interconnected tourism global marketplace.

Part Four Co-promote the Tourism Sector: Including the Visitors in the Coopetition Process to Co-produce the Destination

Abstract

This study explores the impact of the residents' voice and social media brand engagement on coopetition in tourism destinations with the mediating role of knowledge sharing. The study's statistical population includes tourists who visited Iran. The sample was 243 tourists who visited Iranian tourist different villages in the spring of 2023. This empirical study adopted a descriptive correlational method and used PLS3 for data analysis. The effects of residents' voices, knowledge sharing, and engagement with social media improve cooperation between tourism destinations, help create platforms for creativity and innovation in this industry, and ensure the promotion of sustainability and attractiveness of tourism. Therefore, the mutual analysis of the effects of different factors in rural tourism in Iran is valuable in providing a new method to improve the tourism experience in this field.

Abstract

Rural tourism has become increasingly popular given its opportunities to get to know local traditions and lifestyles, to immerse in appealing cultural and natural landscapes and to enjoy a calm and relaxing atmosphere, contrasting stressful city life. Additionally, visitors seek personalised, unique and memorable experiences and immersion in rural places, which could be fostered by co-creative and authentic multisensory experiences. The co-creation of value resulting from tourists' interaction with rural destinations' multiple local agents and resources calls for articulation and even coopetition amongst these agents who may benefit from joining efforts to compete not against each other but together within a wider competitive context to, thus, achieve a stronger, unique market position. This chapter presents a qualitative, exploratory case study, illustrating the overall rural tourist experience lived and co-created in a Portuguese schist village. Semi-structured interviews were applied to visitors, supply and development agents and to the local community in order to understand their perspective regarding the nature, quality and potential of the village experience. Experience co-creation seemed to have a positive impact on visitors' satisfaction. The coopetition approach was also identified in the discourse of supply and development agents who recognised the importance of cooperation, also within the Schist Village Network yielding a more cohesive and attractive tourism product in the village. Aligning locally embedded co-creation experiences and coopetition amongst local actors seems to be a strategic approach for fostering appealing, competitive and sustainable rural tourism experiences.

Abstract

Coopetition, that is simultaneous collaboration and competition between organisations, is a significant phenomenon in inter-organisational relations, particularly in the tourism sector. This chapter explores the role of social embeddedness in coopetition dynamics within the tourism sector. Drawing on qualitative research conducted among members of tourism (culinary) routes in various regions of Poland, the study investigates how social relationships affect coopetition among entrepreneurs. The findings indicate that social embeddedness fosters cooperation by facilitating trust and shared norms among route members, leading them to perceive themselves less as competitors and more as collaborators or even only as collaborators. At the same time, social embeddedness makes it possible to clear the market of competitors who do not comply with certain adopted rules or standards, as well as mitigating competition for employees. Thus, the research findings highlight the complex interplay between social embeddedness and coopetition dynamics in a tourism context. Overall, this research contributes to understanding the perceptions underlying coopetition in the tourism sector and sheds light on the importance of social relationships in shaping inter-organisational behaviour within the tourist industry.

Abstract

This study examines network coopetition strategies to promote the spatial distribution of tourists and their importance for Destination Management Organisations (DMOs). Geotagged photos from the municipality of Porto, Portugal (n = 152,312) uploaded to the Flickr social network between 2010 and 2022 were utilised, and thematic maps were produced using geographic information systems (GISs). Residents and visitors were identified and separated, employing a heuristic approach with a five-day threshold between the first and last photo of each user. The findings indicate an uneven distribution of tourists within the destination, with a notable concentration of accommodation, attractions and visitors in the historic centre. The establishment of a coopetition network could contribute to the dispersion of activity.

Abstract

This concluding chapter examines the footprint of coopetition within the tourism domain, drawing upon existing literature to present a comprehensive overview of its evolution to date. To achieve this, the authors conducted a literature review of 94 articles published on coopetition in tourism and hospitality, sourced from esteemed databases such as Scopus and Web of Science. Each article was meticulously categorised based on its thematic focus, geographical scope and the sample of respondents employed to elucidate the dynamics of coopetition. The findings underscore the concerted efforts of researchers to delineate the contours of coopetition within the tourism and hospitality sectors. Through diverse lenses and methodologies, these studies collectively contribute to the burgeoning discourse surrounding coopetition, illuminating its multifaceted implications and applications in different contexts. This chapter presents a systematic analysis that serves as a testament to the growing momentum behind the coopetition paradigm in tourism. It shows how researchers on coopetition are paving the road towards the coopetition paradigm in tourism and hospitality.

Cover of Value Proposition to Tourism Coopetition
DOI
10.1108/9781837978274
Publication date
2024-12-04
Book series
Building the Future of Tourism
Editors
Series copyright holder
Emerald Publishing Limited
ISBN
978-1-83797-828-1
eISBN
978-1-83797-827-4