The strategic management of ecotourism firms : a resource-based view

Ecotourism has emerged as a major growth segment within the global tourism industry. While it has attracted considerable academic attention, what has been lacking is a systematic study of the strategic management of successful ecotourism firms - that is, by definition, firms that are economically, environmentally and socially sustainable. This thesis addresses this gap in two ways. Firstly, it employs the resource-based view of the firm to identify the strategically relevant resources possessed by successful ecotourism firms. Secondly, it seeks to identify some of the issues' ecotourism firms face in the development and management of their research base. A case study method is employed in this study. This allowed a detailed understanding of the resources and capabilities possessed by ecotourism businesses, and the manner in which these resources are used to ensure their sustainability. In total, three case businesses were included in this study ‚ÄövÑvÆ Kiwi Dundee Adventure, Inala Nature Tours, and Jemby Rinjah EcoLodge. Three criteria were used for selecting businesses for inclusion in this study. Firstly, they had openly marketed themselves as being ecotourism businesses. Secondly, their business operations had to comply with Ecotourism Australia's definition of ecotourism product. Thirdly, they had to have operated continuously for over 10 years and currently be making a net profit. Compliance with these criteria was thought to be indicative of a sustainable ecotourism business. Primary data was collected through semi-structured interviews and participant observation, while secondary data was gained from business documents, promotional materials, and local and international press. Data analysis was facilitated by the use of the software package NVivo 7.0 Analysis revealed four strategically relevant resources across the cases ‚ÄövÑvÆ nature, environmental management and nature conservation, reputation, and network relationships. Nature (a unique natural environment) was found to be critical for attracting ecotourists to a destination. The 'uniqueness' of nature was in part linked to the uniqueness of the ecosystem and the plant and animal species found at the destination, and partly due to the social construction of these places as examples of rare and unique natural capital and different from the physical environment in the ecotourist's home country. Similarly, proactive environmental management and nature conservation processes were critical to success in the ecotourism sector. Participation in such programs helped to protect the natural resource base upon which the business depends, and helps demonstrate the environmental credentials of the business. Reputation was important because it helped to create awareness of ecotourism firms with potential customers, and to encourage others to undertake nature conservation. Network linkages to other businesses and associations were also found to be critical to an ecotourism firm's ability to increase the scope and scale of their operations, while at the same time avoiding many of the associated risks with business expansion. Analysis also revealed three key issues associated with the development and management of these strategically relevant resources. Firstly, ecotourism firms often did not own the resources upon which they depended for their success. This created uncertainty about access and the future viability of the firm. Secondly, linkages existed between resources, necessitating in integrated approach to resource management. Finally, a sustainable business ethic was central to resource management. Such a business ethic fostered a focus on long-term objectives, and a willingness to balance economic, environmental, and social outcomes. Detailed theoretical and practical implications of these findings are discussed, and directions for future research are suggested.