Tourism small and medium enterprise management practices and firm performance

A better understanding of tourism small and medium enterprise (TSME) management practices could improve firm performance. Extending the resource-based view theory, this study empirically investigated the causal relationships between management practices and TSME firm performance using a structural equation model and survey data of 346 tourism entrepreneurs. Six of the nine hypotheses were confirmed. It was found that business planning, entrepreneurial motivation, and government assistance do have a direct and positive effect on TSME firm performance. Additionally, entrepreneurial motivation was positively associated with business planning, business alliance, and firm performance; however, business alliance and Internet adoption did not affect firm performance. The findings highlight the importance of management practices that have previously been overlooked in policy decision making within the tourism industry.