Why Tourism Firms Do Not Innovate The hampering effect of business ecosystems
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2019-07-04
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en
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The current society is rapidly evolving with advancing technologies. These developments create opportunities for new businesses to take the competitive lead, which disrupts current established markets. Established firms must be flexible, and be willing to give up on certain parts of their organization in order to stay ahead in their market. Firms must be ‘willing to cannibalize’. Firms can cannibalize on sales, investments, and capabilities.
This study explored the concept of a fourth dimension of willingness to cannibalize, namely on relationships. A quantitative explorative research was conducted by means of an online survey method. 179 hotel managers with functions as innovation manager, general manager, or owner, have participated in the survey, delivering valuable insights into the hampering effect of ecosystems in the hotel industry.
Results show that a hampering effect of ecosystems in the hotel industry does exist. However, the effect is more complex than originally thought. Hotel firms are convinced they need their loyalty to business partners in order to achieve radical product innovation. This could mean a very dangerous dynamic for the future of hotel firms. These firms are thus not just blind towards better alternative business relationships, they are blind towards what it takes to achieve radical product innovation.
In the end difficult decisions like changing infrastructure and losing investments on property will eventually become reality. In order not to be forced to innovate more radical in order to survive, hotel firms must make the hard choice earlier than later, and cannibalize on their relationships, to stay loyal to their own firm and employees, and get ahead in the market.
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Faculteit der Managementwetenschappen