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Small family-run tourism businesses show deficits in strategy and innovation.
Cooperation overcomes size disadvantages, stimulates new ideas and knowledge exchange.
Customer integration promotes innovation and requires market research and data analysis.
Openness and customer focus are success factors for innovations in tourism.
Summary of the study
The aim of this study is to investigate the relevant topics of innovation and service experience in family businesses in the tourism industry, which are mostly small and medium-sized enterprises. This conceptual study, which builds on Social Identity Theory, conducts a comprehensive literature review before developing propositions regarding innovation and service experiences for small family businesses in the tourism industry. It is found that small family tourism businesses are confronted with deficits in strategic orientation and innovation. Cooperation seems to be a means of overcoming size-related deficits in family-run businesses. Customers who are integrated into the service experience promote innovative developments and strengthen innovation in small tourism businesses. As a prerequisite, the service experience must be properly managed by collecting and evaluating relevant data on customer needs, expectations and satisfaction. An open-minded and consumer-centric, market-oriented strategy seems to be beneficial. Future research should conduct empirical studies to validate and/or modify the propositions presented in this conceptual study. This study is one of the few that has looked at the relationship between service experiences and innovation for family-run small businesses in the tourism industry.
Key findings of this study
- Small family-owned tourism businesses show deficits in strategic orientation and innovation. This is often due to a lack of knowledge in the management of organizations.
- Cooperation and networks are an effective means of overcoming size-related disadvantages. They stimulate new ideas and promote the exchange of knowledge for innovation processes.
- The integration of customers into the service experience is a relevant factor for innovative developments. This requires adequate management through the collection and evaluation of relevant customer data.
- An open-minded and consumer-oriented market strategy proves to be advantageous. It is crucial for the success of innovations, as these must fit the market.
- The special features of family businesses, such as structure and social identity, influence their innovation potential. Family cohesion can both promote and hinder innovation.