Measuring business process innovations among tourism enterprises in the Czech Republic: A PLS-GLM approach

Abstract

The Czech Republic has experienced momentous tourism expansion in recent years. Nevertheless, there is a lack of empirical investigation about this development. Innovations are an essential factor for the sustainable development of the tourism industry in the Czech Republic. The paper expounds on the effect of technical and process innovations among the tour and travel companies in the Czech Republic. The study surveyed 96 travel and tour operators aged 18-40 working in the various small, medium, and large travel agencies to determine their perceptions towards innovation in their respective travel businesses. A two-phased statistical process that combined PLS-SEM and GLM examined the responses of the individuals. It revealed that technical innovation had a robust and positive relationship with corporate profitability. Process innovation remains a grey area for Czech travel businesses. The study builds upon the Process Innovations in Colombia's Tourist Enterprises or PICTE framework to induct critical insights for travel agencies and tour operators to provide these businesses a way forward and make them more competitive and sustainable. It has been observed that tourism businesses that were not early adopters of disruptive technologies became vulnerable to market mechanisms. Therefore, the relevance of this study is further accentuated. COVID-19 has accelerated the climate of VUCA (volatility, uncertainty, complexity, and ambiguity) among Czech tour and travel operators, many of whom winded up or downsized operations. Many of these firms were in the medium and small segments. In light of the present situation, it becomes imperative that travel service providers invest in modern technologies and ensure the same diffusion among the staff. The paper gave the strategies towards human resource mapping and digital transformations for the best interest of the tourism industry. Future studies are recommended to focus on longitudinal measures towards understanding innovation propensities among small and medium-sized businesses. Mixed method studies are encouraged to comprehend the corporate dynamics of change management.