Firm Size and Factors of Competitiveness in Micro Tourism Clusters: Ürgüp Case

Year 2023, , 62 - 75, 21.11.2023

Nuray Topuz Cerrah , Bilge Armatlı Köroğlu

https://doi.org/10.26650/jot.2023.9.1.1330899

Abstract

The aim of this article is to reveal the relationship between firm size and the factors affecting tourism firm competitiveness in micro tourism clusters. Firm level competitiveness is discussed in relation to industry level, and the factors affecting firm competitiveness are defined in parallel to tourism cluster competitiveness. Structural characteristics of the tourism industry and cluster scale are also discussed in theoretical discussions. The results reveal that micro and small firms have lower partnership rate, difficulty in global marketing, lower foreign tourist rate, lower membership rate in collective bodies, lower education level of entrepreneurs, put less emphasis on certification, participate less in tourism decision-making processes, and take fewer measures to protect the environment. Therefore, micro and small firms have weaker network connections and associating sustainability automatically with small scale is wrong. It is also revealed that economies of scope and diagonal clustering work negatively in relation to firm size. Thus, it seems contradictory to associate economies of scope and diagonal clustering at the same time in micro tourism clusters. Medium and large firms are more advantageous in terms of factors of competitiveness; however, micro and small firms contribute to complementarity and regional competitiveness more.

Keywords

Firm size, firm competitiveness, tourism clusters, micro tourism clusters, Ürgüp/ Cappadocia

References

• Agustin, E. S., Martini, R., & Setiyono, B. (2022). Evaluating rural tourism competitiveness: Application of PROMETHEE-GAIA method. Cogent Economics & Finance, 10(1), 1-16. google scholar
• Aires, J., Costa, C., Brandao, F. (2022). Exploring indicators and determinants to evaluate innovation in tourism firms -A systematic literatüre review. Tourism, 70(4), 656-673. google scholar
• Akbaba, A. (2012). Understanding small tourism businesses: A perspective from Turkey. Journal of Hospitality and Tourism Management, 19(1),31-47. google scholar
• Akben-Selcuk, E. (2016). Factors affecting firm competitiveness: Evidence from an emerging market. International Journal of Financial Studies, 4(9), 1-10. google scholar
• Albrecht, J. N. (2013). Networking for sustainable tourism - Towards a research agenda. Journal of Sustainable Tourism, 21(5), 639-657. google scholar
• Ambastha, A., & Momaya, K. (2004). Competitiveness of firms: Review of theory, frameworks and models. Singapore Management Review, 26(1), 45-61. google scholar
• Arnstein, S. R. (1969). A ladder of citizen participation. Journal of the American Institute of Planners, 35(4), 216-224, google scholar
• Armatlı Köroğlu, B. (2011). Bölgesel küme politikaları: Rekabet ve işbirliği. Ankara: T.C. Bayındırlık ve İskan Bakanlığı, TAU. google scholar
• Armatlı Köroğlu, B. (2013). İstanbul kuyumculuk kümesi yenilik ve tasarim kapasitesi. Ekonomik Yaklaşım, 23(84), 81-102. google scholar
• Armatlı Köroğlu, B., & Özelçi Eceral, T. (2017). Rethinking space in production networks: Network centrality and R&D activities in Ankara defense and aviation cluster. Journal of Science, 30(2), 17-33. google scholar
• Baggio, R. (2011). Collaboration and cooperation in a tourism destination: A network science approach. Current Issues in Tourism, 14(2), 183-189. google scholar
• Baggio, R., Scott, N., & Cooper, C. (2011). Design of tourism governance networks. Tourist Destination Governance: Practice, Theories and Issues, 1-15. google scholar
• Banwet, D. K., Momaya, K. S., & Shee, H. (2003). Competitiveness through technology management: An empirical study of the Indian software industry. International Journal of Services Technology and Management, 4(2), 131-155 google scholar
• Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99-120. google scholar
• Becker, G. (1964). Human capital: A theoretical and empirical analysis with special reference to education. New York: Columbia University Press. google scholar
• Brandenburger, A., & Nalebuff, B. J. (1997). Co-opetition. Newyork: Currency Doubleday. google scholar
• Bressan, A., & Pedrini, M. (2020). Exploring sustainable-oriented. Tourism Planning & Development, 17(5), 497-514. google scholar
• Buhalis, D., & Main, H. (1998). Information technology in peripheral small and medium hospitality enterprises: Strategic analysis and critical factors. International Journal of Contemporary Hospitality Management, 10(5), 198-202. google scholar
• Buhalis, D. (2000). Marketing the competitive destination of the future. Tourism Management, 21(1), 97-116. google scholar
• Burgos, A., & Mertens, F. (2017). Participatory management of community-based tourism: A network perspective. Community Development, 48(4), 546-565. google scholar
• Burnaz, E., & Ayyıldız, H. (2018). Destinasyon rekabetçiliği endeksi önerisi. Uluslararası İktisadi ve İdari İncelemeler Dergisi, 21, 237-254. google scholar
• Butler, R. W. (1980). The concept of a tourist area cycle of evolution: Implications for management of resources. The Canadian Geographer, 24(1), 5-12. google scholar
• Butler, R. W. (1999) Sustainable Tourism: A state-of-the-art review. Tourism Geographies, 1(1), 7-25. google scholar
• Camarinha-Matos, L. M., Afsarmanesh, H., & Boucher, X. (2010). The role of collaborative networks in sustainability. in L. M., Camarinha-Matos, X., Boucher, & H. Afsarmanesh, (Ed.), Collaborative networks for a sustainable world (pp. 1-16). St. Etienne (France): Springer. google scholar
• Camison, C., & Fores, B. (2015). Is tourism firm competitiveness driven by different internal or external specific factors? New empirical evidence from Spain. Tourism Management, 48, 477-499. google scholar
• Colaric-Jakse, L. M., & Ambroz, M. (2015). Actor-network theory and stakeholder collaboration: The case of Slovenia. Mediterranean Journal of Social Sciences, 6(3), 231-239. google scholar
• Capon, N., Farley, J. U., & Hoenig, S. (1990). Determinants of financial performance: A meta-analysis. Management Science, 36(10), 1143-1159. google scholar
• Chaston, I. and T, Mangles, (1987) Core capabilities as predictor of growth in small manufacturing firms. Journal of Small Business Management, 35 (1), 47-57. google scholar
• Cracolici, M. F., Nijkamp, P., & Rietveld, P (2008). Assessment of tourism competitiveness by analysing destination efficiency. Tourism Economics, 14(2), 325-342. google scholar
• Crouch, G. I., & Ritchie, J. (1999). Tourism, competitiveness and societal prosperity. Journal of Business Research, 44(3), 137-152. google scholar
• Crouch, G. I. (2011). Destination competitiveness: An analysis of determinant attributes. Journal of Travel Research, 50(1), 27-45. google scholar
• Cunha, S. K., & Cunha, J. C. (2005). Tourism cluster competitiveness and sustainability: Proposal for a systemic model to measure the impact of tourism on local development. Brazilian Administration Review, 2(2), 47-62. google scholar
• Dredge, D. (2006). Policy networks and the local organisation of tourism. Tourism Management, 27(2), 269-280. google scholar
• Dwyer, L., & Kim, C. (2003). Destination competitiveness: Determinants and indicators. Current Issues in Tourism, 6(5), 369-414. google scholar
• Durân-Român, J. L., Cârdenas-Garaa, P J., & Pulido-Fernândez, J. I. (2021). Tourist tax to improve sustainability and the experience in mass tourism destinations: The case of Andalusia (Spain). Sustainability, 13(42), 1-20. google scholar
• Enright, M. J., & Newton, J. (2004). Determinants of tourism destination competitiveness in Asia Pacific: Comprehensiveness and universality. Journal of Travel Research, 43(4), 339-350. google scholar
• Eraydın, A., & Armatlı Köroğlu, B. (2005). Innovation, networking and the new industrial districts: The characteristics of networks and local innovation capabilities in the Turkish industrial clusters. Entrepreneurship and Regional Development, 17(4), 237-266. google scholar
• Eraydın, A., & Armatlı Köroğlu, B. (2007). Increasing role of services in competitive power and innovativeness of firms and industrial clusters. European Planning Studies, 12(7), 905 - 925. google scholar
• Erkus Özturk, H. (2009). The role of cluster types and firm size in designing the level of network relations: The experience of the Antalya tourism region. Tourism Management, 30(4), 589-597. google scholar
• Erkus-Öztürk, H., & Eraydın, A. (2010). Environmental governance for sustainable tourism development: Collaborative networks and organisation building in the Antalya tourism region. Tourism Management, 31(1), 113-124. google scholar
• Erkuş-Öztürk, H. (2011). Emerging importance of institutional capacity for the growth of tourism clusters: The case of Antalya. European Planning Studies, 19(10), 1735-1753. google scholar
• Erkuş-Öztürk, H., & Terhorst, P. (2011). Two micro-models of tourism capitalism and the (re)scaling of state-business relations. Tourism Geographies, 14(3), 1-30. google scholar
• Estevâo, C. M., & Ferreira, J. J. (2009). Regional competitiveness of tourism cluster: A conceptual model proposal. Munich Personal RePEc Archive, 1-19. google scholar
• Font, X., Torres-Delgado, A., Crabolu, G., Martinez, J. P., Kantenbacher, J., & Miller, G. (2023). The impact of sustainable tourism indicators on destination competitiveness: The European tourism indicator system. Journal of Sustainable Tourism, 31(7), 1608-1630. google scholar
• Galbreath, J., & Galvin, P. (2008). Firm factors, industry structure and performance variation: New empirical evidence to a classic debate. Journal of Business Research, 61(2), 109-117. google scholar
• Gibson, L., & Lynch, P. (2007). Networks: Comparing community experiences. in E. J. Michael (Ed.), Micro-clusters and networks: The growth of tourism (pp. 107-126). Oxford: Elsevier Ltd. google scholar
• Goffi, G., & Cucculelli, M. (2014). Components of destination competitiveness. The case of small tourism destinations in Italy. International Journal of Tourism Policy, 5(4), 296-326. google scholar
• Gooroochurn, N., & Sugiyarto, G. (2005). Competitiveness indicators in the travel and tourism industry. Tourism Economics, 11(1), 25-43. google scholar
• Gonzâlez-Rodriguez, M. R., D^az-Fernândez, M. C., & Pulido-Pavon, N. (2023). Tourist destination competitiveness: An international approach through the travel and tourism competitiveness index. Tourism Management Perspectives, 47(101127), 1-13. google scholar
• Graci, S. (2013). Collaboration and partnership development for sustainable tourism. Tourism Geographies, 15(1), 25-42. google scholar
• Gray, B., & Wood, D. J. (1991). Collaborative alliances: Moving from practice to theory. The Journal of Applied Behavioral Science, 27 (1),3-22. google scholar
• Hall, C. M., Lynch, P., Michael, E. J., & Mitchell, R. (2007). The contribution of the micro-cluster approach. in E.J. Michael (Ed.), Micro-clusters and networks: The growth of tourism (pp. 141-152). Oxford: Elsevier Ltd. google scholar
• Hall, C. M. (2009). Rethinking collaboration and partnership: A public policy perspective. Journal of Sustainable Tourism, 1(3), 274-289. google scholar
• Hassan, S. (2000). Determinants of market competitiveness in an environmentally sustainable tourism industry. Journal of Travel Research, 38(3), 239-245. google scholar
• Hawawini, G., Subramanian, V., & Verdin, P. (2003). Is performance driven by industry or firm specific factors? A new look at the evidence. Strategic Management Journal, 24(1), 1-16. google scholar
• Heath, E. (2002). Towards a model to enhance Africa’s sustainable tourism competitiveness. Journal of Public Administration, 37(1), 327-353. google scholar
• Hing, V., Thangavelu, S., & Kong, R. (2023). Technology, innovation, and firm competitiveness: Firm level analysis in Cambodia. ADBI Working Paper. 1353. Tokyo: Asian Development Bank Institute. google scholar
• Hjalager, A.-M. (2010). A review of innovation research in tourism. Tourism Management, 31(1), 1-12. google scholar
• Iorio, M., & Corsale, A. (2014). Community-based tourism and networking: Viscri, Romania. Journal of Sustainable Tourism, 22(2), 234-255. google scholar
• Jamal, T. B., & Getz, D. (1995). Collaboration theory and community tourism planning. Annals of Tourism Research, 22(1), 186-204. google scholar
• Jovanovic, S., Milic, V. J., & Krstic, B. (2014). Homogeneity analysis of South-Eastern EuropeanCountries according to tourismcompetitiveness performances. Economic Research, 27(1), 207-220. google scholar
• Kachniewska, M. (2013). Towards the definition of a tourism cluster: Entrepreneurship in tourism and sport. Journal of Entrepreneurship Management and Innovation, 9(1), 33-56. google scholar
• Kaku, R. (1997), The path of Kyosei. Harvard Business Review, July-August 75(4), 55-63. google scholar
• Kale, E. (2016). Küçük ölçekli turizm girişimciliğinin özelliklerinin belirlenmesi. Uluslararası Yönetim İktisat ve İşletme Dergisi, 12(30),159-173 google scholar
• Kallmuenzer, A., & Peters, M. (2018). Entrepreneurial behaviour, firm size and financial performance: The case of rural tourism family firms. Tourism Recreation Research, 43(1), 2-14. google scholar
• Karacaoğlu, S., Yolal, M., & Birdir, K. (2016). Toplum temelli turizm projelerinde katılım ve paylaşım:Misi Köyü örneği. Çağ Üniversitesi Sosyal Bilimler Dergisi, 13(2), 103-124. google scholar
• Kayar, Ç. H., & Kozak, N. (2010). Measuring destination competitiveness: An application of the travel and tourism competitiveness index (2007). Journal of Hospitality Marketing & Management, 19(3), 203-216. google scholar
• Kim, N., & Wicks, B. E. (2010). Rethinking tourism cluster development models for global competitiveness. in 2010 ICHRIE Conference Proceedings (pp. 1-9). University of Massachusetts Amherst. google scholar
• Kitson, M., Ron, M., & Tyler, P. (2004). Regional competitiveness: An elusive yet key concept? Regional Studies, 38(9), 991-999. google scholar
• Koçak, B. (2018). Tedarik zinciri ölçek ve kapsam ekonomileri modelinin araştırılması. Doctoral Thesis. Maltepe University. google scholar
• Kozak, M., & Rimmington, M. (1999). Measuring tourist destination competitiveness: Conceptual considerations and empirical findings. International Journal of Hospitality Management, 18(3), 273-283. google scholar
• Krstic, B., Jovanovic, S., Jankovic-Milic, V., & Stanisic, T. (2016). Examination of travel and tourism competitiveness contribution to national economy competitiveness of Sub-Saharan Africa Countries. Development Southern Africa, 33(4), 470-485. google scholar
• Krugman, P. (1994). Competitiveness: A dangerous obsession. Foreign Affairs, 73(2), 28-44. google scholar
• Kumar, K., & Dissel, H. G. (1996). Sustainable collaboration: Managing conflict and cooperation in interorganizational systems. MIS Quarterly,20(3), 279-300. google scholar
• Kumar, S., Kumar, D., & Nicolau, J. L. (2024). How does culture influence a country’s travel and tourism competitiveness? A longitudinal frontier study on 39 countries. Tourism Management, 100(104822), 1-16. google scholar
• Küçükaslan, A., & Ersoy, N. F. (2007). The determinants of competitive advantage and success factors of firms within the global competition. Marmara Üniversitesi İ.İ.B.F. Dergisi, 23(7), 223-237. google scholar
• Li, Y., Lai, K., & Feng, X. (2007). The problem of ‘Guanxi’ for actualizing community tourism: A case study of relationship networking in China. Tourism Geographies, 9(2), 115-138. google scholar
• Liargovas, P., & Skandalis, K. (2007). Factors affecting firm competitiveness: The case of Greek industry. Proceedings of LSE google scholar
• Lynch, P., & Morrison, A. (2007). The role of networks. in E. J. Michael (Ed.), Micro-clusters and networks: The growth of tourism (pp. 43-62).Oxford: Elsevier Ltd. google scholar
• Maldonado-Erazo, C. P., Rama, D. R., Noboa-Vinan, P., & Âlvarez Garrfa, J. (2020). Community-based tourism in Ecuador: Community ventures of the provincial and cantonal networks. Sustainability, 12(15), 1-30. google scholar
• Marshall, A. (1920). Principles of economics. Londra: Macmillan. google scholar
• Mazanec, J. A., Wober, K., & Zins, A. H. (2007). Tourism destination competitiveness: From definition to explanation? Journal of Travel Research, 46(1), 86-95. google scholar
• Mcgahan, A. M., & Porter, M. E. (1997). How much does industry matter, really?. Strategic Management Journal, 18(Summer Special Issue), 15-30. google scholar
• Michael, E., J. (2007). Micro-clusters and networks: The growth of tourism. Oxford: Elsevier Science Ltd. google scholar
• Michael, E. J., & Hall, M. C. (2007). A path for policy. in E. J. Michael (Ed.), Micro-clusters and networks: The growth of tourism (pp. 127-140).Oxford: Elsevier Ltd. google scholar
• Murphy, P. E. (1985). Tourism: A community approach. London & New York: Routledge. google scholar
• Murphy, P. E., & Murphy, A. E. (2004). Strategic management for tourism communities bridging the gaps. Clevedon, Buffalo, Toronto: Channel View Publications. google scholar
• Nordin, S. (2003). Tourism clustering & innovation - Paths to economic growth and development. Östersund, Sweden: European Tourism Research Institute. google scholar
• Novelli, M., Schmitz, B., & Spencer, T. (2006). Networks, clusters and innovation in tourism: A UK experience. Tourism Management, 27(6),1141-1152. google scholar
• Okazaki, E. (2008). A community-based tourism model: Its conception and use. Journal of Sustainable Tourism, 16(5), 511-529. google scholar
• Othman, F., Sazali, F., & Mohamed, B. (2013). Rural and community-based tourism development in Malaysia: Prospects for homestays as a social economy enterprise. TEAM Journal of Hospitality and Tourism, 10(1), 65-76. google scholar
• Papatheodorou, A. (2004). Exploring the evolution of tourism resorts. Annals of Tourism Research, 31(1), 219-237. google scholar
• Perles Ribes, J., Rodriguez Sanchez, I., & Ramon-Rodriguez, A. B. (2017). Is a cluster a necessary condition for success? The case of Benidorm. Current Issues in Tourism, 20(15), 1575-1603. google scholar
• Polenske, K. (2004). Competition, collaboration and cooperation: An uneasy triangle in networks of firms and regions. Regional Studies, 38(9), 1029-1043. google scholar
• Poon, A. (1990). Flexible specialization and small size: The case of Caribbean tourism. World Development, 18(1), 109-123. google scholar
• Poon, A. (1994). Tourism, technology and competitive strategies. Wallingford: CABI. google scholar
• Poon, A. (2003). Competitive strategies for a new tourism. in C. Cooper (Ed.), Classic reviews in tourism (pp. 130-142). Clevedon, Buffalo, Toronto: Channel View Publications. google scholar
• Porter, M. E. (1980). Rekabet stratejisi: Sektör ve rakip analizi teknikleri. (G. Ulubilgen, translation) İstanbul: Aura Publication. google scholar
• Porter, M. E. (1990). The competitive advantage of nations. Harvard Business Review, March-April. google scholar
• Porter, M. E. (1998). Clusters and the new economics of competition. Harvard Business Review, November-December. google scholar
• Roberts, S., & Tribe, J. (2008). Sustainability indicators for small tourism enterprises - An exploratory perspective. Journal of Sustainable Tourism, 16(5), 575-594. google scholar
• Ross, J. W., Beath, C. M., & Goodhue, D. L. (1996). Develop long-term competitiveness through IT assets. Sloan Management Review, 38(1), 31-42. google scholar
• Santos, C., Almeida, A., & Teixeira, A. (2008). Searching for clusters in tourism. A quantitative methodological proposal. FEP Working Papers, 1-38. google scholar
• Schmalensee, R. (1985). Do markets differ much? American Economic Review, 75(3), 341-351. google scholar
• Schmitz, H. (1999). Global competition and local cooperation: Success and failure in the Sinos Valley, Brazil. World Development, 27(9), 1627-1650. google scholar
• Scott, N., Baggio, R., & Cooper, C. (2009). Network analysis and tourism: From theory to practice. Clevedon, UK: Channel View Publications. google scholar
• Sharma, M., Gupta, R., Sehrawat, R., Jain, K., & Dhir, A. (2023). The assessment of factors influencing big data adoption and firm performance: Evidences from emerging economy. Enterprise Information Systems, 1-29. google scholar
• Sigurdardottir, I., & Steinthorsson, R. S. (2018). Development of micro-clusters in tourism: A case of equestrian tourism in Northwest Iceland. Scandinavian Journal of Hospitality and Tourism, 18(3), 261-277. google scholar
• Stawasz, E. (2019). Factors that shape the competitiveness of small innovative companies operating in international markets with a particular focus on business advice. Journal of Entrepreneurship, Management and Innovation, 15(1), 61-82. google scholar
• Tolkach, D., King, B., & Pearlman, M. (2013). An attribute-based approach to classifying community-based tourism networks. Tourism Planning and Development, 10(3), 319-337. google scholar
• Tonny, L., & Robert, C. (2023). How social media marketing impacts the performance of star rated hotels. Journal of Business, Economics and Management Research Studies, 1(1), 25-32. google scholar
• Tosun, C. (2000). Limits to community participation in the tourism development process in developing countries. Tourism Management, 21(6), 613-633. google scholar
• Thomas, R., Shaw, G., & Page, J. S. (2011). Understanding small firms in tourism: A perspective on research trends and challenges. Tourism Management, 32(5), 963-976. google scholar
• Urano, D. G., & Nobrega, W. R. (2020). Community-based tourism and networks: An analysis of the collaborative relationships in the Tucum Network, Brazil. Podium Sport Leisure and Tourism Review, 9(3), 408-434. google scholar
• Wernerfelt, B. (1984). A resource-based view of the firm. Strategic Management Journal, 5(2), 171-180. google scholar
• Williamson, O. E. (1975) Markets and hierarchies: Analysis and antitrust implications. A study in the economics of internal organization, University of Illinois google scholar
• Wilkinson, I., & March, R. (2009). Conceptual tools for evaluating tourism partnerships. Tourism Management, 30(3), 455-462. google scholar
• Yanes, A., Zielinski, S., Diaz-Cano, M., & Kim, S. (2019). Community-based tourism in developing countries: A framework for policy evaluation. Sustainability, 11(9), 1-23. google scholar
• Yordam, S., & Düşmezkalender, E. (2019). Toplum temelli turizme kavramsal bir bakış. in Y. Atayeter (Ed.), 6th International Congress on Multidisciplinary Studies Conference Proceedings (pp. 229-237). Gaziantep. google scholar
• Yuhanis, A. A., Awang, K., & Saiton, Z. (2012). Challenges faced by micro, small, and medium lodgings in Kelantan, Malaysia. International Journal ofEconomics and Management, 6(1), 167 - 190. google scholar
• Cittaslow Organisation. (2019) Cittaslow Population Criteria. Retrieved from https://www.cittaslow.org/news/time-interested-about-us. 12.01.2019 google scholar
• European Commission. (2003). SME Definition. Retrieved from https://single-market-economy.ec.europa.eu/smes/sme-definition_en.01.05.2022 google scholar
• The International Institute for Management Development (IMD), (2022). World Competitiveness Ranking 2022. Retrieved from https://www.imd.org/centers/wcc/world-competitiveness-center/rankings/world-competitiveness-ranking/ 01.05.2023 google scholar
• Turkish Republic Culture and Tourism Ministry. (2019). Tourism Statistics. Retrieved from https://yigm.ktb.gov.tr/TR-9851/turizm-istatistikleri.html.12.03.2019 google scholar
• World Economic Forum (WEF), (2020). Global competitiveness report. Retrieved from https://www.weforum.org/reports/the-global-competitiveness-report-2020/ 01.05.2022 google scholar