Exploring Digitalization within the Tourism Supply Chain Network : Small Micro Medium Enterprise Perspective in Gauteng, South Africa
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May 31, 2023
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Abstract
Purpose: Digitalisation among SMMEs has been slow due to the constraints such as a lack of infrastructure, networks, technologies, and related skills to fast-track digital transition. These binding constraints make it harder for Small Micro and Medium Enterprises (SMMEs) in developing countries to undertake this digital transition. The purpose of this study is to explore the state of digitalisation within the Tourism Supply Chain Network (TSCN) among SMMEs in Gauteng.
Design/ Methodology/ Approach: An ethnographic qualitative methodology was adopted to have a better understanding of the complexity and idiosyncrasies of digitalisation within the TSCN among the SMMEs in Gauteng where interviews were conducted from twelve participants until saturation.
Findings: The results revealed that apart from the lack of digital skills (data analytics software and video editing technology) and limited understanding of knowledge management especially for the legal systems within the supply network among the selected SMMEs remains a challenge.
Practical Implication: Formulating integrated business ventures and approaching big projects as consortiums not as individual small micro entities is critical for more purpose-driven tourism networks, especially for emerging businesses. SMMEs hardly work with other businesses in the area to develop sustainable networks; hence, there is a need for an effective travel and tourism data Management Company connecting both international and domestic suppliers for effective and efficient service to the businesses and the customers.
Paper type: Research paper
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References
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• Rahmiati, F., Othman, N., Ismail, Y., Bakri, M., & Amin, G. (2020). The analysis of tourism value chain activities on competitive creation: tourists’ perspective. Talent Development & Excellence, 12(1), 4613-4628.
• Ritter, T., & Pedersen, C. L. (2020). Digitization capability and the digitalization of business models in business-to-business firms: Past, present, and future. Industrial Marketing Management, 86, 180-190.
• Rogerson, C. M., & Rogerson, J. M. (2022). The first round impacts of COVID-19 for rural tourism in South Africa. Studia Periegetica, 37, 63-86.
• Sifolo, P. P. S., & Sokhela, P. (2022). Digitalization Opportunities for Tourism Micro-Entrepreneurship in South Africa: An Academic Gaze. Indian Journal of Finance, 16(12), 8-25
• Sitohang, A. C., & Wiwoho, B. (2022). The Influence of Labor Competence, and Innovation Behavior on the Motivation for Achievement and Performance of Wooden Furniture Smes Employees in Pasuruan City. IJEBD (International Journal of Entrepreneurship and Business Development), 5(6), 1074-1083.
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• Solomon, E. M., & van Klyton, A. (2020). The impact of digital technology usage on economic growth in Africa. Utilities policy, 67, 101104.
• Szpilko, D. (2017). Tourism supply chain–overview of selected literature. Procedia Engineering, 182, 687-693.
• Tapper, R. & Font, X. (2004). Tourism Supply Chains: Report of a desk Research Project for the Travel Foundation. Environment Business and Development Group. 1-23
• Telukdarie, A., Philbin, S., Mwanza, B. G., & Munsamy, M. (2022). Digital platforms for SMME enablement. Procedia Computer Science, 200, 811-819.
• Uddin, M. B. (2022). The effect of strategic commitment and supply chain collaboration on operational and innovation performance. IIMB Management Review.
• Wang, Y., Xi, M., Chen, H., & Wu, X. (2022). A social network analysis of tourism cooperation in the Yangtze River Delta: A supply and demand perspective. Plos one, 17(2), e0263411.
• World Economic Forum. (2015). Collaborative Innovation Transforming Business, Driving Growth. Geneva, Switzerland
• Zhang, X., Song, H., & Huang, G. Q. (2009). Tourism supply chain management: A new research agenda. Tourism management, 30(3), 345-358.
• Baggio R. 2011. Collaboration and cooperation in a tourism destination: A network science approach. Current Issues Tourism. 14: 183–189. https://doi.org/10.1080/13683500.2010.531118 2.
• Bama, H. K. N., Nyathela-Sunday, T., & Makuzva, W. (2022). What innovations would enable the tourism and hospitality industry in Africa to re-build? Worldwide Hospitality and Tourism Themes, 14(6), 557-564.
• Culture, Arts, Tourism, Hospitality, and Sport Sector Education and Training Authority (CATHSSETA) 2022-2023 Annual Performance Plan 2020/21 – 2024/25. Sandton, South Africa
• Cenamor, J., Parida, V., & Wincent, J. (2019). How entrepreneurial SMEs compete through digital platforms: The roles of digital platform capability, network capability, and ambidexterity. Journal of Business Research, 100, 196-206.
• Chinoda, T., & Kapingura, F. M. (2023). Digital financial inclusion and economic growth in Sub-Saharan Africa: the role of institutions and governance. African Journal of Economic and Management Studies.
• Daly, J., & Gereffi, G. (2017). Tourism global value chains and Africa. Industries without Smokestacks, 68, 1-25.
• Department of Communication and Digital Technologies (DCDT) (2021). PC4IR strategic implementation plan (PC4IR SIP) National Departments Consultation presentation. https://bit.ly/3bRzO68 [Accessed on 08 February 2023]
• Dubey, S., Singh, R., Singh, S. P., Mishra, A., & Singh, N. V. (2020). A brief study of the value chain and supply chain. Agriculture Development and Economic Transformation in Global Scenario, 177-183.
• Foster, C. (2017). Digitalisation and trade: what hope for lower-income countries? Background paper for the UNCTAD Information Economy Report.
• Happ, É., & Ivancsó-Horváth, Z. (2018). Digital tourism is the challenge of the future – A new approach to tourism. Knowledge Horizons-Economics, 10 (2) 9-16
• Hong T, Ma T, Huan T(C). 2015. Network behavior as driving forces for tourism flows. Journal of Business Research. 68: 146–156. https://doi.org/10.1016/j.jbusres.2014.04.006
• Hossain, M. S., Mostafa, M. G., & Hossain, M. A. (2021). Modeling tourists' satisfaction in the nature-based tourist destination using structural equation modeling technique. Geo Journal of Tourism and Geosites, 37(3), 814-822.
• Jermsittiparsert, K., Joemsittiprasert, W., & Phonwattana, S. (2019). Mediating role of sustainability capability in determining sustainable supply chain management in tourism industry of Thailand. International Journal of Supply Chain Management, 8(3), 47-58.
• Khoase, R., Derera, E., McArthur, B., & Ndayizigamiye, P. (2019). Perceptions of Small, Medium and Micro Enterprises’ (SMMEs) owners on services provided by the supporting institutions in South Africa. African Journal of Gender, Society & Development, 8(2), 139.
• Kotler, P., Kartajaya, H. & Setiawan, I. (2016). Marketing 4.0: Moving from Traditional to Digital. New Jersey, John Wiley and Sons.
• Luke, R., Heyns, G. J., Savage, C. J., & Fransman, L. (2016). Investigating logistics skills gaps and their impact on the supply chain: a review of the Southern African situation.
• Maisiri, W. and van Dyk, L. (2019). Industry 4.0 Readiness Assessment for South African Industries. South African Journal on Industrial Engineering, 30(3). http://sajie.journals.ac.za/pub/article/view/2231
• Mathibe, M., Mochenje, T., & Masonta, M. T. (2021). Assessing the effectiveness of 4IR strategy on South African township economy: Smart township perspective. In Mbali Conference 2021 Proceedings (pp. 103-120).
• Mkhungo, L. (2021). Small, Medium and Micro Enterprise Project Success in a State Owned Entity: A Buyer’s View. University of Johannesburg (South Africa).
• Molefe, P, L., Tauoatsoala, P., Sifolo, P, P. S., Manavhela, P., & Henama, U., S. 2018. African Journal of Hospitality, Tourism and Leisure, Volume 7 (2)
• Ndulu, B., Ngwenya, N. X., & Setlhalogile, M. (2022). The Digital Divide in South Africa: Insights from the COVID-19 Experience and Beyond. In The Future of the South African Political Economy Post-COVID 19 (pp. 273-295). Cham: Springer International Publishing.
• Newbold, C. Published on 20 January 2018. How to do ethnography research. Available at: https://thevisualcommunicationguy.com/2018/01/30/how-to-do-ethnography-research/. Accessed: 09 February 2023
• O’Connor, P. (2023). Small-and medium-sized tourism enterprises and smart tourism: tourism agenda 2030 perspective article. Tourism Review, (ahead-of-print).
• Pongsathornwiwat, N., Huynh, V., & Jeenanunta, C. (2017). Developing Evaluation Criteria for Partner Selection in Tourism Supply Chain Networks. International Journal of Knowledge and Systems Science (IJKSS), 8(1), 39-52. http://doi.org/10.4018/IJKSS.2017010103
• Phillimore, J., & Goodson, L. (2004). Progress in qualitative research in tourism: Epistemology, ontology and methodology. In Qualitative research in tourism (pp. 21-23). Routledge.
• Rahmiati, F., Othman, N., Ismail, Y., Bakri, M., & Amin, G. (2020). The analysis of tourism value chain activities on competitive creation: tourists’ perspective. Talent Development & Excellence, 12(1), 4613-4628.
• Ritter, T., & Pedersen, C. L. (2020). Digitization capability and the digitalization of business models in business-to-business firms: Past, present, and future. Industrial Marketing Management, 86, 180-190.
• Rogerson, C. M., & Rogerson, J. M. (2022). The first round impacts of COVID-19 for rural tourism in South Africa. Studia Periegetica, 37, 63-86.
• Sifolo, P. P. S., & Sokhela, P. (2022). Digitalization Opportunities for Tourism Micro-Entrepreneurship in South Africa: An Academic Gaze. Indian Journal of Finance, 16(12), 8-25
• Sitohang, A. C., & Wiwoho, B. (2022). The Influence of Labor Competence, and Innovation Behavior on the Motivation for Achievement and Performance of Wooden Furniture Smes Employees in Pasuruan City. IJEBD (International Journal of Entrepreneurship and Business Development), 5(6), 1074-1083.
• Small Business Institute, 2021. Digitalisation – the best hope for South Africa and its small firms. Available at: https://www.smallbusinessinstitute.co.za/wp-content/uploads/2019/02/Digitalisation-Paper-March-2021.pdf. Accessed: 07 March 2023
• Solomon, E. M., & van Klyton, A. (2020). The impact of digital technology usage on economic growth in Africa. Utilities policy, 67, 101104.
• Szpilko, D. (2017). Tourism supply chain–overview of selected literature. Procedia Engineering, 182, 687-693.
• Tapper, R. & Font, X. (2004). Tourism Supply Chains: Report of a desk Research Project for the Travel Foundation. Environment Business and Development Group. 1-23
• Telukdarie, A., Philbin, S., Mwanza, B. G., & Munsamy, M. (2022). Digital platforms for SMME enablement. Procedia Computer Science, 200, 811-819.
• Uddin, M. B. (2022). The effect of strategic commitment and supply chain collaboration on operational and innovation performance. IIMB Management Review.
• Wang, Y., Xi, M., Chen, H., & Wu, X. (2022). A social network analysis of tourism cooperation in the Yangtze River Delta: A supply and demand perspective. Plos one, 17(2), e0263411.
• World Economic Forum. (2015). Collaborative Innovation Transforming Business, Driving Growth. Geneva, Switzerland
• Zhang, X., Song, H., & Huang, G. Q. (2009). Tourism supply chain management: A new research agenda. Tourism management, 30(3), 345-358.