Customer relationship management in small to medium tourism enterprises (SMTEs) in the Eastern Cape Province
- Authors: Vallabh, Dinesh
- Date: 2014
- Subjects: Customer relations -- Management , Small business -- South Africa -- Eastern Cape , Tourism -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Doctoral , PhD
- Identifier: vital:9322 , http://hdl.handle.net/10948/d1020797
- Description: The role of entrepreneurship in small to medium tourism enterprises is well recognised and acknowledged as a significant contributor to economic development and employment opportunities. Worldwide, small to medium tourism enterprises play a dominant role in the tourism industry. These businesses are often vulnerable to external economic forces and find it increasingly difficult to transform their strategic and operational management to face the challenges placed upon them. This study focuses on small to medium tourism enterprises in the Eastern Cape Province, which is economically the poorest province of South Africa. To ensure the growth and sustainability of small to medium tourism enterprises, owners need to make efficient and effective business decisions regarding the challenges their businesses face. The study examines the factors impacting customer relationship management in the context of small to medium tourism enterprises in the Eastern Cape. Customer relationship management, that is, building relationships with customers, has become of pivotal importance to many organisations as businesses strive to be competitive and profitable. While large organisations practice customer relationship management to enable them to better target profitable customers, improve customer services, enhance customer retention and ultimately improve business performance, small businesses often need assistance in understanding and effecting this complex relationship. The factors that could impact customer relationship management in the organisations are the focus of this study. Three major factors were identified, namely, strategic, operational, and organisational factors. The study furthermore examined the extent to which these factors are present in the tourism and hospitality sector of the Eastern Cape and investigated the relationships between these factors. Quantitative research was deemed appropriate for this study. Systematic random sampling was employed to select a sample of 332 respondent organisations from the 2012 database of the Eastern Cape Parks and Tourism Agency consisting of formally registered small to medium tourism enterprises. A total of 310 usable questionnaires were finally obtained. Both descriptive and inferential statistics were used in the study. Descriptive statistics were computed to reflect the organisations‟ and respondent managers‟ general characteristics and to summarise their measurement scores. Using inferential statistics, the study further investigated relationships between customer relationship management factors, as well as demographic factors. Data were subjected to exploratory factor analysis and both the validity (refer to section 2.10.1) and reliability (refer to section 2.10.2) of the research instrument was assessed. The relationships between customer relationship management variables were also investigated (refer to section 2.11.4). The research results support an overall significant association between customer relationship management readiness and business strategy, customer strategy, touch points and competencies, skills and technology. Relationships were also explored among customer relationship management factors and demographic characteristics. Significant results were found between perceived business performance and the gender of managers, family businesses and gross annual turnover. The most salient contributions of this research can be summarised as follows. The overview of the importance of tourism and the role of small to medium enterprises in the tourism and hospitality industry of the Eastern Cape will benefit researchers and potential owners who have an interest in this sector. The study contributes to an improved understanding of the factors that should precede customer relationship management. The study established a profile of the small to medium tourism enterprises in the Eastern Cape which can serve as a basis for future research. A measuring instrument for assessing respondents‟ views on the existence of the strategic, operational and organisational factors in their organisations was developed. This instrument showed good internal validity and reliability and can serve as a basis for the same purpose in contexts other than the tourism and hospitality sector. This research has made a contribution toward a largely under-researched area concerning customer relationship management in small to medium enterprises. Recommendations for managers and consideration of future research included the following. Managers need to have a strategic vision and a strong customer-centric focus. Through understanding customers and their needs, offerings can be tailored to maximize the overall value of customers, thereby, improving business performance. Through efficient operational processes in place, enhanced customer service levels can be attained in the organisations. Managers need to effectively manage customer information through data warehousing and technology. Top management commitment is a crucial element for ensuring improved customer services. Managers need to train staff with respect to customer services, thus enhancing CRM. Future researchers can conduct a longitudinal study and investigate the same factors which could impact customer relationship management. A verification of the usefulness of the measuring instrument in examining the determinants of customer relationship management and the level of development regarding other small businesses is suggested. It is recommended that this study be replicated abroad in an effort to verify to what extent the determinants of customer relationship management are evident in small businesses of other countries.
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- Date Issued: 2014
Management capacity within small and medium tourism enterprises (SMTEs)
- Authors: Mxunyelwa, Siyabonga
- Date: 2019
- Subjects: Small business -- South Africa -- Eastern Cape -- Management , Tourism -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Doctoral , DPhil
- Identifier: http://hdl.handle.net/10948/41708 , vital:36574
- Description: The small to medium tourism enterprises are identified as important contributors to the growth of the local and regional economies and creates much needed entrepreneurial ventures. Universally, small to medium tourism enterprises play a significant role in the tourism sector. The small businesses are in many instances deemed to facing risk to economic environmental challenges and face uphill battles to operate their enterprises in a sustainable manner. Management of these enterprises by owners and managers seems to face challenges. This study focuses on small to medium tourism enterprises in the Eastern Cape Province, South Africa, which faces the triple threat challenges of poverty, inequality and unemployment, and is one of the economically poorest provinces of South Africa. In an endeavour to create a trajectory for progression and development of small to medium tourism enterprises, owners and managers are required to undertake management capacity programmes to deal with the problems that confront the enterprise on a daily basis. The study examines the factors impacting on management capacity with specific focus on the small to medium tourism enterprises in the Eastern Cape Province, South Africa. Management capacity is paramount as it builds managerial competency and has become significant to the small business economy, as these enterprises make every effort to avoid discontinuation. Management capacity improves business performance and small enterprises require help in order to have a broader understanding of issues that can be an impediment to address the challenges in the business environment. The factors that could impact on management capacity within the enterprises are the focus of this research. The eleven main factors were identified, namely skills development; reasons for starting a business; business challenges; strategic and management knowledge; business leadership; business resources, business environment; business communication; business organisational leadership; organisational strategy; and organisational information factors. Furthermore, the study examined the level of influence of these factors on the management capacity of small businesses in the tourism and hospitality sector in the Eastern Cape and investigated the relationships between these factors. A descriptive research design and a quantitative approach were considered suitable for this study. A systematic random sampling technique was utilised to choose a sample of 320 business respondents from the 2012 database of the Eastern Cape Parks and Tourism Agency, comprising of formally registered small tourism businesses. A total of 310 usable questionnaires was finally obtained. In this study descriptive and inferential statistics were applied. Descriptive statistics were captured to highlight the owners and managers’ general characteristics and to consolidate their measurement scores. Utilising inferential statistics, the study undertook an investigation into relationships between demographic variables and business characteristics. Furthermore, an investigation of the relationships amongst the following factors: skills development; reasons for starting a business; business challenges; strategic and management knowledge; business leadership; business resources, business environment; business communication; business organisational leadership; organisational strategy and organisational information factors was undertaken. Data were subjected to exploratory factor analysis and both the validity and reliability of the research instrument was assessed. The research findings support an overall significant correlation between management capacity and skills development; reasons for starting a business; business challenges; strategic and management knowledge; business leadership; business resources, business environment; business communication; business organisational leadership; organisational strategy and organisational information. The study also explored the relationship between demographics and business characteristics. A significant relationship was found between business characteristics and variables in the demographic profile, namely the gender of owners/managers, educational levels, qualifications, and gross annual turnover. What follows is a summation of the most significant contributions of this research. The overview of the significance of the tourism sector in the economy and the role of small businesses in the tourism and hospitality industry of the Eastern Cape will benefit researchers and potential owners/managers who have an interest in this developing sector. The study enhances the understanding of the factors that relate to management capacity. The study has established a profile of SMTE sector in the Eastern Cape, South Africa, which can play a significant role for future research. This research makes a contribution to the largely under-researched area of management capacity in small to medium tourism enterprises. Recommendations for owners/managers and consideration of future research included the following. Owners/managers need to have management skills and a strong strategic focus. Through management capacity the needs of the business will be addressed, and capacity building programmes can be tailored to maximise the benefits for owners/managers of SMTEs, thereby improving business performance and avoiding high failure rate. Managers need to be effectively trained to deal with business needs. The management of the business plays a pivotal role in the performance of the enterprise. Managers must be skilled with regards to developing strategic plans, marketing plans, and business plans, thus enhancing management capacity. Longitudinal studies can be undertaken to investigating the same factors which could impact on management capacity. It is recommended that this study be replicated across the global spectrum in order to analyse the factors that impact on management capacity of small to medium tourism businesses of other countries.
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- Date Issued: 2019