INNOVATION DEVELOPMENT IN REGIONAL TOURISM ENTERPRISES Zbigniew Zontek Univerity of Bielsko-Biala, Poland ToSEE - Tourism in South East Europe 3rd International Scientific Conference Sustainable Tourism, Economic Development and Quality of Life University of Rijeka, Faculty of Tourism and Hospitality Management Opatija INNOVATION DEVELOPMENT IN REGIONAL TOURISM ENTERPRISES The core of the innovation is putting the novelty into a practice, which comes down to the offering of a new product or service on the market. Or, in relation to a new process, organization or marketing methods, to their usage in the current activity of a business. (Oslo Manual) Innovation can be analysed from two points of view: • narrow - Innovation strictly refers to a deep change in production methods and products, based on new, unused knowledge, and/or the first trade introduction (application) of a new product, service, process or equipment • broad (sensu largo), corresponds to change in an organization's activity, and that means the assimilation of existed knowledge (diffusion of innovation) ToSEE - Tourism in South East Europe 3rd International Scientific Conference Sustainable Tourism, Economic Development and Quality of Life University of Rijeka, Faculty of Tourism and Hospitality Management Opatija INNOVATION DEVELOPMENT IN REGIONAL TOURISM ENTERPRISES There are several main types of innovation in tourism: • product innovations - result is the rise of innovative products (tourism services), • managerial and procedural innovations, improving of the processes of tourism services, new models of management in tourism companies and entities, • information innovations – used in the new promotional channels, new information system within tourism region, • institutional innovations – new forms of support of tourismm enterprises, new form of co-operation (clusters); • other forms of innovation (logistics, ecological, cultural, etc.) (A.-M. Hjalager, „A Review of Innovation Research in Tourism”, Tourism Management No. 3, 2010). ToSEE - Tourism in South East Europe 3rd International Scientific Conference Sustainable Tourism, Economic Development and Quality of Life University of Rijeka, Faculty of Tourism and Hospitality Management Opatija INNOVATION DEVELOPMENT IN REGIONAL TOURISM ENTERPRISES Sources of innovation can be divided into two main groups: Internal sources (endogenous) – the origin of sources is in an organization, innovations can be a result of the research and internal knowledge. External sources (exogenous) – sources of innovation come from the environment (e.g.: demographic factors, changes in customers perception, new standards, values, knowledge). ToSEE - Tourism in South East Europe 3rd International Scientific Conference Sustainable Tourism, Economic Development and Quality of Life University of Rijeka, Faculty of Tourism and Hospitality Management Opatija INNOVATION DEVELOPMENT IN REGIONAL TOURISM ENTERPRISES This primary research was conducted from November 2012 to February 2013. The winter period creates increased tourism activity in the region studied. The area of the research was a mountain area, situated within the administrative boundaries of the Silesia Province. In other studies the area is called: the Southern Sub-region of the Silesia Province or Bielsko Sub-region. There are concentrations of tourism enterprises and other organizations which provide tourism services, that have had an impact on the choice of the region of research. ToSEE - Tourism in South East Europe 3rd International Scientific Conference Sustainable Tourism, Economic Development and Quality of Life University of Rijeka, Faculty of Tourism and Hospitality Management Opatija INNOVATION DEVELOPMENT IN REGIONAL TOURISM ENTERPRISES The results are the author's own empirical research, conducted through a survey questionnaire. The study was conducted on a random sample of tourism enterprises and entities. The representative research was based on tele - address lists, from which units were randomly selected for the research. 191 tourism subjects were involved in the survey, which represented 29.4% of the population. In the course of this research, 121 well completed questionnaires were received, that was 63.4% of the research sample. 62.8% of the researched subjects implemented innovations in the period of 3 years before the research study. ToSEE - Tourism in South East Europe 3rd International Scientific Conference Sustainable Tourism, Economic Development and Quality of Life University of Rijeka, Faculty of Tourism and Hospitality Management Opatija INNOVATION DEVELOPMENT IN REGIONAL TOURISM ENTERPRISES The aim of the study was to identify: - sources of innovation, - effects of the implemented innovative solutions, - directions of innovation development, - Barriers to innovation . Research hypothesis: The possibility of creating innovation in tourism, and its implementation, is dependent on the internal preferences of companies and external factors. The relative strength of the impact of these factors varies. ToSEE - Tourism in South East Europe 3rd International Scientific Conference Sustainable Tourism, Economic Development and Quality of Life University of Rijeka, Faculty of Tourism and Hospitality Management Opatija Sources of innovation in researched tourism enterprises Customers' comments, suggestions Willingness to take advantage of external funds Observing other domestic tourism enterprises Cooperation with institutions supporting the raising of funds Observing foreign tourism enterprises Information available in scientific and sectorial studies Comments received from inhabitants of the region Efficient human resources management Participation in conferences, professional meetings, fairs Cooperation with business partners with a similar business profile Cooperation in the local area network (clusters) Acquisition of patents, licenses, including leasing, franchising Cooperation with local and regional public or non-governmental institutions Showing best practices by tourism entities Cooperation with the science sector Other sources of innovation % 86.8% 68.4% 55.3% 48.7% 39.5% 38.2% 35.5% 31.6% 31.6% 27.6% 22.4% 22.4% 21.1% 13.2% 11.8% 2.6% Effects of implemented innovations 0% growth of customer satisfaction increase of opportunities for development streamlining of labour standing out from the competitors increase in selling services 10% growth of human resources involvement 0.0% reducing prices for services 40% 50% 60% 70% 80% 90% 86.8% 13.2% 68.4% 31.6% 65.8% 34.2% 0.0% 64.5% 34.2% 1.3% Yes 15.8% 53.9% 30.3% 39.5% 0.0% 36.8% 35.5% 14.5% 18.4% 1.3% 9.2% No Not applicable 60.5% 63.2% 0.0% 1.3% 100% 94.7% 0.0% access to international sales network growth of the prices of services 30% 3.9% 1.3% access to new markets complex improvement of functioning. 20% 50.0% 80.3% 89.5% ToSEE - Tourism in South East Europe 3rd International Scientific Conference Sustainable Tourism, Economic Development and Quality of Life University of Rijeka, Faculty of Tourism and Hospitality Management Opatija Internal barriers to innovation 6.6% 9.1% lack of discerning benefits from introducing innovations 8.3% 13.2% 11.6% fear that other enterpriese may take advantage of my innovations fear of financial costs of innovations the technical barriers (limited access to new technologies, problem related to the location, etc.) lack of adequate human resources 48.8% failure in the implementation of earlier innovations External barriers to innovation 9.9% 5.0%1.7% 11.6% 23.1% 25.6% 23.1% lack of mechanisms for exchange of experiences lack of cooperation with other entities of tourist services market the mentality of entrepreneurs, which does not help the cooperation the mentality of the representatives of local, regional, national governments, which doesn’t help the cooperation exaggerated bureaucracy in raising funds problems in finding investors restrictions that resulted from environmental preservation (e.g. Nature 2000) ToSEE - Tourism in South East Europe 3rd International Scientific Conference Sustainable Tourism, Economic Development and Quality of Life University of Rijeka, Faculty of Tourism and Hospitality Management Opatija INNOVATION DEVELOPMENT IN REGIONAL TOURISM ENTERPRISES Conclusions: • The hypothesis established in the introduction is confirmed, subject to some limitations. • The results show that there are many sources of innovation in tourism enterprises, but respondents draw attention especially to the external sources. • The possibility of creating innovation in tourism is dependent on the internal predispositions of companies but managers do not fully recognize the meaning of human resources in innovation processes. • There are many barriers to innovation. The largest of them is the fear of financial costs of innovation and the mentality that disturb cooperation processes. Thank you for your attention! Zbigniew Zontek University of Bielsko-Biala E-mail: zzontek.ath@gmail.com