CHAPTER 7: CONCLUSION AND RECOMMENDATIONS
7.3. CONCLUSION BASED ON THE LITERATURE
In this section, a detailed discussion of phenomenon under study (i.e. the utilisation to of social media to advance tourism SMMEs including relationship management in the tourism SMMEs) is rendered drawing on mainstream literature. This is useful to demonstrate the extent of congruence and contradictions of mainstream literature with the broad narrative of findings articulated in this study.
7.3.1. Social media technologies and Tourism SMMEs
Most scholars generally concur that the use of social media technologies are important to the competitiveness of tourism SMMEs (Baruah, 2012; Aspasia & Ourania, 2014; Kiráľová & Pavlíčeka, 2014; Surugiu & Surugiu, 2015). One of the interesting dimensions is that tourism SMMEs’ stakeholders especially customers utilise social media platforms (such as Facebook) to acquire information about tourist resorts, accommodations etc. from family and friends and even strangers from different countries. The revolution of internet-based SMTs has enabled travellers to share their travel experiences and information shared on SMTs is recognised as assisting tourists
to make decisions about destinations (Zeng & Gerritsen, 2014). Surugiu and Surugiu (2015) warn tourism businesses that stakeholders do not just collect information via SMTs, but they also want to provide feedback from their previous experiences of the use of their services/products.
7.3.2. Business connectivity with customers
Yet, the adoption of social media technology is not necessarily the explorative creation of customers only as businesses also harness the same platforms for competitive advantage. In support of this view, Musungwini, Zhou, Zhou and Ruvinga (2014) posit that a business that understands the advantage of social media is well conscious that social media is critical in developing new business in the current competitive and online driven marketplace. Hence, through social media, businesses have an opportunity to be exposed to prospective customers. Emerging entrepreneurs are adopting social media to improve the management of their stakeholders such as relations with customers, relations with employees and suppliers, expedite their business operations and marketing of the business brands.
7.3.3. Identifying the customers’ product needs and preferences
This narrative resonates with Surugiu and Surugiu (2015) who affirm that tourism SMMEs are harnessing social media technologies regularly to develop their businesses and to improve their marketing mix to address the product and service needs and preferences of the consumers. Furthermore, Surugiu and Surugiu (2015) further affirm that SMTs embody valuable resources in the identification of stakeholder’s needs and accordingly providing modified, innovative up-do-date products/services.
Drawing on the broad literature discussed in this section, it can be argued that tourism SMMEs are currently utilising social media inconsistently to develop their relationship with stakeholders, thus positively improve their competitiveness. They seem to use SMTs on an ad hoc basis without any formal adoption. To the contrary, literature suggests that customers are active online sharing information, commenting and seeking information. Therefore, tourism SMMEs need not lag behind if they are to retain their customer base.
7.3.4. Tourism SMMEs’ social media mediated relationships with stakeholders
7.3.4.1. Identities of tourism SMME stakeholders
Freeman (1984:46) defines a stakeholder as “any group or individual who can affect or is affected by the achievement of the organisation’s objectives”. For tourism SMMEs, customers comprise tourists, guests, patrons (etc.) who visit the guest lodges, bed-and-breakfasts, resorts and tourist attractions for leisure. Suppliers are the companies and organisations that render resources needed by the tourism SMMEs to provide goods or services to their customers. The competitors, on the other hand, are other tourism SMMEs, large businesses in the tourism sector in the same place or even in different countries that provide the same or almost the same products/services. Hult, Mena, Ferrell and Ferrell (2011) posit that though competitors may contest for customers, they also collaborate through joint ventures or by sharing a supply chain. The regulator serves to provide policies and regulations in the tourism sector. Regulators are usually national, provincial and local governments.
7.3.4.2. Role and responsibilities of tourism SMME stakeholders
Each of the stakeholders play a fundamental role in the success of tourism SMMEs. Customers play an important role as the consumers of tourism products/services. Hence, Hult et al. (2011) affirm that an important effect of a customer orientation is its significant relationship to business performance. Suppliers are essential to the tourism SMMEs as they supply them with the necessary resources that enable them to be productive. Hult et al. (2011) assert that the business’ relationships with its suppliers can also be instrumental to the firm’s ability to improve its performance. Competitors can be useful when working together and also as a measure for SMMEs’ quality and Regulators/government are the provider of policies that may affect the sustainability of tourism sector. In view of this, the regulator/government is responsible for determining policies and plans as well as setting and imposing standards in the sector (Anuar, Ahmad, Jusoh & Hussain, 2012).
7.3.4.3. Significance of stakeholders in the tourism SMMEs
Thus, each group of stakeholders is a critical element to the success of the tourism SMMEs. Although stakeholders play an important role in the development of tourism, stakeholders are not all equally important. There are those who are actively involved
and are more important than others (Dabphet, 2013). For instance, there are primary stakeholders, which are the groups the business depends on for its survival and continued success. In the case of this study the customers and suppliers were the primary stakeholders. Secondary stakeholders affect or are affected by the business, yet they are not important for its survival (Hult, Mena, & Ferrell, 2011). The stakeholders included regulators, the community and competitors. However, there is a need for tourism SMMEs to take all the stakeholders seriously as they are important and needed to various degrees for business competitiveness. In view of this assertion, Peric, Durkin and Lamot (2014) affirm that in the tourism environment, very generic categories of stakeholders are important for the development of tourism sector.
7.3.4.4. Stakeholders and firm competitiveness
As Yilmaz and Gunel (2009) affirm, stakeholders should be considered as the main actors in achieving success and gaining competitive advantage. In view of this, it is important to recognise the key stakeholders which most affect competitiveness of tourism SMMEs and accept how each group of stakeholders utilise their interests in sustainable tourism development (Dabphet, 2013). In view of the above, there is a need for tourism SMME managers/owners to ensure their business’ competitiveness through managing business stakeholders. In support of this view, Wu (2013) postulates that competitive advantage is the fundamental concern of strategic management in which stakeholder management is entrenched. Therefore, for competitiveness to occur, stakeholder management needs to be part of the tourism SMMEs’ strategy.
7.3.4.5. Impact of SMTs on business-stakeholder relations
The proliferation of SMTs means that it has become much easier to develop weak ties, which can be tapped into provide information or assistance, or to collaborate (Schroeder, 2013). However, technological developments and the growth of social media are also making possible innovative forms of business interaction and activity involving new types of business relationships. Therefore, there is a need for tourism SMMEs managers/owners to utilise SMTs effectively to improve the profitability, growth and competitiveness. The welfare of the business is critical to improve the relationship between the business and its stakeholders. A business will also be judged
by the way it reacts to online consumer feedback, especially negative comments or complaints. The impact of SMTs on business-stakeholder relations will be positive, for instance, if customer’s comments or complaints are engaged with. This will not only improve the relationship, but the products/services the business provide as well.