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Cooperation of Small and Medium-
                     sized Tourism Enterprises (SMTEs)
                     with Tourism Stakeholders in the
                     Małopolska Region – Top
                     Management Perspective Approach

                      Krzysztof Borodako
     Department of Tourism, Cracow University of Economics
              krzysztof.borodako@uek.krakow.pl


International Conference on Tourism & Management Studies – Algarve 2011
Plan of presentation
       Literature review
       Methodology of the research
       Research sample
       Results
       Conclusions

Acknowledgement: The scientific research financed from the budget for science in 2009-2011
                     as a research project (No 2606/B/H03/2009/36).
           Project commission by the Ministry of Science and High Education.

                                     Krzysztof Borodako PhD                            2
Literature review
 The significant part of the tourism and hospitality industry are
 SMTEs (Morrison 1998; Page, Forer & Lawton, 1999)
 SMTEs usually do not possess enough resources to run
 businesses separately: information, knowledge, human
 resources, but also financial or organizational resources
 The participation in the network is particularly important in
 case of Small and Medium-Sized Tourism Enterprises
 (SMTEs)
 Relations of managers and entrepreneurs could be seen as a
 main aspect of cooperation (Crick & Spence, 2005; Kontinen
 & Ojala, 2010)



                         Krzysztof Borodako PhD                     3
Literature review
 One of the key attributes of cooperation between different
 partners is the number of relations during a particular time
 period (e.g. in the conducted research was assumed one year )
 Others attributes of cooperation between different partners
 could be formality, diversity, density and stability
 All stakeholders in the tourism destination are interdependent
 in terms of their information access, distribution, supplies,
 sales and at the same time they are interdependent in relation
 to others companies in the tourism destination (Ford, Gadde,
 Håkansson & Snehota, 2003:6)




                        Krzysztof Borodako PhD                4
Facts about Malopolska Region
Area 15,144 sq. km,
Provincial capital city: Krakow,
Krakow – 756 000 residents,
22 counties (3 municipal),
57 cities; 2,635 villages,
25 cities under 10,000,
Population 3,2 million




                          Krzysztof Borodako PhD                     5
                                                   Source: www.index-medica.pl
SMTEs in Malopolska
 SMTEs are a part of 99.94% of all companies in the Hotels
 and Restaurants sector in Malopolska (CSO, 2008)
 Micro and small companies (up to 50 employees) constituted
 99.51% of all companies of that sector (CSO, 2008)
 There were 10 705 micro companies in the Hotels and
 Restaurants sector, which was 3.75% of all micro firms in the
 region (CSO, 2008)




                        Krzysztof Borodako PhD                   6
The aim of research
 To understand the difference in number of
 relations of SMTEs with tourism
 stakeholders in the region




                Krzysztof Borodako PhD       7
Methodology
 The collected database of the companies consisted of
 1812 unique e-mail addresses of different businesses in
 tourism industry in the region.
 The inquiry form was prepared in an electronic version
 on the internet website with access granted to
 companies that were invited by a special e-mail
 invitation.
 Finally, out of 1812 emails sent to unique addresses,
 198 addresses were incorrect, so the final number of the
 delivered invitations was 1614.
 As a result of filling the inquiry forms I received 195
 completed records from SMTEs companies fulfilled by
 the owners, CEOs or directors of the companies.


                     Krzysztof Borodako PhD             8
Characteristics of the responders

Position                   Status                    Education
President         59.51%   Owner              82.56% Higher education             68.91%
                                                     Secondary vocational
Director          40.49%   Employee           17.44% education                    30.05%
No indication     19.63%                             Basic vocational education   1.04%
                           Experience in
Age                                                     Profile of education
                           tourism sector
21-30 years old   14.36%   Under 1 year       1.54% Tourism                       22.05%
31-40 years old   27.69%   1-2 years          6.67% Business                      21.54%
41-50 years old   29.74%   3-5 years          16.92% Technical                    23.08%
51-60 years old   23.59%   6-10 years         24.10% Law                          1.54%
Over 60 years old 4.62%    11-15 years        19.49% Humanities                   17.44%
                           over 15 years      30.26% Others                       14.36%
                                    Krzysztof Borodako PhD                                9
Characteristics of the researched
      companies from the Małopolska Region
Subsector                Number of employees                       Age of firm

Accommodation   40.51% Micro firms (1-9)                   59.49% under 2 years    11,34%
Catering        26.67% SMEs (10-249)                       40.51% 3-5 years        25,77%
Others          32.82%                                             6-10 years      21,65%
                                                                   11-15 years     17.53%
                                                                   over 15 years   23.71%
Member of tourism chamber or organization       Part of the region
Yes                             27.46%          Cracow (city and district)         46.15%
No                              72.54%          Other part of the Małopolska       53.85%




                                  Krzysztof Borodako PhD                               10
SMTEs cooperation in relation
       to the level of employment
                    Micro firms      SMTEs           Micro firms            SMTEs            Micro firms     SMTEs
  Cooperate with




                                                            Cooperate with:

                          Travel agency                  Tourism organizations                    Public authorities
            with:




                    p*= 0.00220                      p= 0.00493                             p= 0.00007
                    V= 0.2565434                     V= 0.2416381                           V= 0.3164247
none                    27%             17%                43%                 23%                 22%          14%
1 to 5                  45%             29%                50%                 59%                 66%          47%
over 5                  28%             53%                 6%                 18%                 12%          38%
total                   100%           100%                100%               100%                100%         100%

                      Micro firms – one to nine employees; SMTEs – ten to two hundred forty nine employees
       * In the research the statistical significance in the analyzed cases was lower than 0.05 (p≤0.05).
                                                      Krzysztof Borodako PhD                                           11
SMTEs cooperation in relation
  to the level of employment
                    Micro firms      SMTEs        Micro firms           SMTEs           Micro firms     SMTEs
  Cooperate with




                                                        Cooperate with:

                        Higher education            Training or consulting
                                                                                           Financial institutions
            with:




                          institutions                    companies
                    p*= 0.00547                   p= 0.00024                            p= 0.00045
                    V= 0.2399167                  V= 0.2977360                          V= 0.2832762
none                    52%            32%             53%                29%                 25%          6%
1 to 5                  40%            47%             43%                50%                 67%         73%
over 5                  8%             22%             5%                 21%                 8%          21%
total                  100%           100%            100%               100%                100%         100%
                     Micro firms – one to nine employees; SMTEs – ten to two hundred forty nine employees
  * In the research the statistical significance in the analyzed cases was lower than 0.05 (p≤0.05).
                                                  Krzysztof Borodako PhD                                        12
SMTEs cooperation in relation
           to the subsector
                     AC      CA     OT      AC     CA       OT     AC         CA   OT    AC      CA         OT
  Cooperate with:




                                                            Cooperate with
                                                                       Tourism              Private tourism
                    Accommodation                Catering
                                                                     organizations            attractions
            with:




                    p= 0.00012            p= 0.00000              p= 0.02475            p= 0.00092
                    V= 0.2491663          V= 0.3024805            V= 0.1751565          V= 0.2269834
none                15% 37% 10% 27% 44% 10% 37% 45% 25% 25%                                      53%        25%
1 to 5              53% 46% 37% 64% 27% 51% 53% 36% 68% 51%                                      16%        41%
over 5              32% 17% 53%             9%     29% 40% 10% 18%                 7%   25%      31%        34%
total               100% 100% 100% 100% 100% 100% 100% 100% 100% 100%                           100%        100%

                          Abbreviations used in the table: AC – Accommodation, CA – catering, OT – Others

                                                     Krzysztof Borodako PhD                                  13
SMTEs cooperation in relation
     to the age of the company
                                              Age of the researched companies
  Cooperate with:




                    < 2 3-5 6-10 11-15 > 15 < 2 3-5 6-10 11-15 > 15 < 2 3-5 6-10 11-15 > 15
                    years years years years years years years years years years years years years years years

                                                        Cooperate with
            with:




                       Catering companies           Tourism organizations          Financial institutions
                    p= 0.00797                    p= 0.01149                    p= 0.00078
                    V= 0.2353074                  V= 0.2333461                  V= 0.2646296
none                38% 15% 24% 35% 25% 62% 37% 41% 23% 23% 52% 12% 14% 15% 13%
1 to 5              62% 66% 54% 35% 36% 38% 50% 44% 58% 73% 48% 76% 71% 59% 78%
over 5              0% 19% 22% 29% 39% 0% 13% 15% 19% 5%                        0% 12% 14% 26% 9%
 total              100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%


                                                  Krzysztof Borodako PhD                              14
Some limitations of the method
 First of all, the structure of the SMTEs sample does not
 exactly reflect the reality structure of the companies in
 the Malopolska region (although high participation of
 micro enterprises could be seen as very valuable).
 Secondly, the dominant part of the sample came from
 the city and district of Cracow, so the metropolitan area
 is imperceptibly overrepresented (affected by good
 reputation of the Tourism Department of Cracow
 University of Economics in that area).
 In the research there were included only enterprises, that
 use e-mail.



                      Krzysztof Borodako PhD             15
Concluding remarks
 The largest part of the researched sample usually
 cooperates with one to five partners from each
 stakeholder group.
 Surprising was the high level of cooperation with
 competitors from the same subsector – almost one third
 of the accommodation and catering firms collaborate
 with more than five competitors.




                     Krzysztof Borodako PhD               16
Thank you!
              E-mail:
krzysztof.borodako@uek.krakow.pl




         Krzysztof Borodako PhD    17

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Tourism firms cooperation in Krakow

  • 1. Cooperation of Small and Medium- sized Tourism Enterprises (SMTEs) with Tourism Stakeholders in the Małopolska Region – Top Management Perspective Approach Krzysztof Borodako Department of Tourism, Cracow University of Economics krzysztof.borodako@uek.krakow.pl International Conference on Tourism & Management Studies – Algarve 2011
  • 2. Plan of presentation Literature review Methodology of the research Research sample Results Conclusions Acknowledgement: The scientific research financed from the budget for science in 2009-2011 as a research project (No 2606/B/H03/2009/36). Project commission by the Ministry of Science and High Education. Krzysztof Borodako PhD 2
  • 3. Literature review The significant part of the tourism and hospitality industry are SMTEs (Morrison 1998; Page, Forer & Lawton, 1999) SMTEs usually do not possess enough resources to run businesses separately: information, knowledge, human resources, but also financial or organizational resources The participation in the network is particularly important in case of Small and Medium-Sized Tourism Enterprises (SMTEs) Relations of managers and entrepreneurs could be seen as a main aspect of cooperation (Crick & Spence, 2005; Kontinen & Ojala, 2010) Krzysztof Borodako PhD 3
  • 4. Literature review One of the key attributes of cooperation between different partners is the number of relations during a particular time period (e.g. in the conducted research was assumed one year ) Others attributes of cooperation between different partners could be formality, diversity, density and stability All stakeholders in the tourism destination are interdependent in terms of their information access, distribution, supplies, sales and at the same time they are interdependent in relation to others companies in the tourism destination (Ford, Gadde, Håkansson & Snehota, 2003:6) Krzysztof Borodako PhD 4
  • 5. Facts about Malopolska Region Area 15,144 sq. km, Provincial capital city: Krakow, Krakow – 756 000 residents, 22 counties (3 municipal), 57 cities; 2,635 villages, 25 cities under 10,000, Population 3,2 million Krzysztof Borodako PhD 5 Source: www.index-medica.pl
  • 6. SMTEs in Malopolska SMTEs are a part of 99.94% of all companies in the Hotels and Restaurants sector in Malopolska (CSO, 2008) Micro and small companies (up to 50 employees) constituted 99.51% of all companies of that sector (CSO, 2008) There were 10 705 micro companies in the Hotels and Restaurants sector, which was 3.75% of all micro firms in the region (CSO, 2008) Krzysztof Borodako PhD 6
  • 7. The aim of research To understand the difference in number of relations of SMTEs with tourism stakeholders in the region Krzysztof Borodako PhD 7
  • 8. Methodology The collected database of the companies consisted of 1812 unique e-mail addresses of different businesses in tourism industry in the region. The inquiry form was prepared in an electronic version on the internet website with access granted to companies that were invited by a special e-mail invitation. Finally, out of 1812 emails sent to unique addresses, 198 addresses were incorrect, so the final number of the delivered invitations was 1614. As a result of filling the inquiry forms I received 195 completed records from SMTEs companies fulfilled by the owners, CEOs or directors of the companies. Krzysztof Borodako PhD 8
  • 9. Characteristics of the responders Position Status Education President 59.51% Owner 82.56% Higher education 68.91% Secondary vocational Director 40.49% Employee 17.44% education 30.05% No indication 19.63% Basic vocational education 1.04% Experience in Age Profile of education tourism sector 21-30 years old 14.36% Under 1 year 1.54% Tourism 22.05% 31-40 years old 27.69% 1-2 years 6.67% Business 21.54% 41-50 years old 29.74% 3-5 years 16.92% Technical 23.08% 51-60 years old 23.59% 6-10 years 24.10% Law 1.54% Over 60 years old 4.62% 11-15 years 19.49% Humanities 17.44% over 15 years 30.26% Others 14.36% Krzysztof Borodako PhD 9
  • 10. Characteristics of the researched companies from the Małopolska Region Subsector Number of employees Age of firm Accommodation 40.51% Micro firms (1-9) 59.49% under 2 years 11,34% Catering 26.67% SMEs (10-249) 40.51% 3-5 years 25,77% Others 32.82% 6-10 years 21,65% 11-15 years 17.53% over 15 years 23.71% Member of tourism chamber or organization Part of the region Yes 27.46% Cracow (city and district) 46.15% No 72.54% Other part of the Małopolska 53.85% Krzysztof Borodako PhD 10
  • 11. SMTEs cooperation in relation to the level of employment Micro firms SMTEs Micro firms SMTEs Micro firms SMTEs Cooperate with Cooperate with: Travel agency Tourism organizations Public authorities with: p*= 0.00220 p= 0.00493 p= 0.00007 V= 0.2565434 V= 0.2416381 V= 0.3164247 none 27% 17% 43% 23% 22% 14% 1 to 5 45% 29% 50% 59% 66% 47% over 5 28% 53% 6% 18% 12% 38% total 100% 100% 100% 100% 100% 100% Micro firms – one to nine employees; SMTEs – ten to two hundred forty nine employees * In the research the statistical significance in the analyzed cases was lower than 0.05 (p≤0.05). Krzysztof Borodako PhD 11
  • 12. SMTEs cooperation in relation to the level of employment Micro firms SMTEs Micro firms SMTEs Micro firms SMTEs Cooperate with Cooperate with: Higher education Training or consulting Financial institutions with: institutions companies p*= 0.00547 p= 0.00024 p= 0.00045 V= 0.2399167 V= 0.2977360 V= 0.2832762 none 52% 32% 53% 29% 25% 6% 1 to 5 40% 47% 43% 50% 67% 73% over 5 8% 22% 5% 21% 8% 21% total 100% 100% 100% 100% 100% 100% Micro firms – one to nine employees; SMTEs – ten to two hundred forty nine employees * In the research the statistical significance in the analyzed cases was lower than 0.05 (p≤0.05). Krzysztof Borodako PhD 12
  • 13. SMTEs cooperation in relation to the subsector AC CA OT AC CA OT AC CA OT AC CA OT Cooperate with: Cooperate with Tourism Private tourism Accommodation Catering organizations attractions with: p= 0.00012 p= 0.00000 p= 0.02475 p= 0.00092 V= 0.2491663 V= 0.3024805 V= 0.1751565 V= 0.2269834 none 15% 37% 10% 27% 44% 10% 37% 45% 25% 25% 53% 25% 1 to 5 53% 46% 37% 64% 27% 51% 53% 36% 68% 51% 16% 41% over 5 32% 17% 53% 9% 29% 40% 10% 18% 7% 25% 31% 34% total 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% Abbreviations used in the table: AC – Accommodation, CA – catering, OT – Others Krzysztof Borodako PhD 13
  • 14. SMTEs cooperation in relation to the age of the company Age of the researched companies Cooperate with: < 2 3-5 6-10 11-15 > 15 < 2 3-5 6-10 11-15 > 15 < 2 3-5 6-10 11-15 > 15 years years years years years years years years years years years years years years years Cooperate with with: Catering companies Tourism organizations Financial institutions p= 0.00797 p= 0.01149 p= 0.00078 V= 0.2353074 V= 0.2333461 V= 0.2646296 none 38% 15% 24% 35% 25% 62% 37% 41% 23% 23% 52% 12% 14% 15% 13% 1 to 5 62% 66% 54% 35% 36% 38% 50% 44% 58% 73% 48% 76% 71% 59% 78% over 5 0% 19% 22% 29% 39% 0% 13% 15% 19% 5% 0% 12% 14% 26% 9% total 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% Krzysztof Borodako PhD 14
  • 15. Some limitations of the method First of all, the structure of the SMTEs sample does not exactly reflect the reality structure of the companies in the Malopolska region (although high participation of micro enterprises could be seen as very valuable). Secondly, the dominant part of the sample came from the city and district of Cracow, so the metropolitan area is imperceptibly overrepresented (affected by good reputation of the Tourism Department of Cracow University of Economics in that area). In the research there were included only enterprises, that use e-mail. Krzysztof Borodako PhD 15
  • 16. Concluding remarks The largest part of the researched sample usually cooperates with one to five partners from each stakeholder group. Surprising was the high level of cooperation with competitors from the same subsector – almost one third of the accommodation and catering firms collaborate with more than five competitors. Krzysztof Borodako PhD 16
  • 17. Thank you! E-mail: krzysztof.borodako@uek.krakow.pl Krzysztof Borodako PhD 17