Networking and competitiveness in small firm tourism businesses in island destinations: a case study of Kampung Air Batang, Tioman Island

Abstract

Small firms tend to form networks within themselves to boost their business-related problems and to provide the whole participants of the network with all the resources shared in the network. These informal networks are mainly formed around social networks with family, friends, relatives and acquaintances. This study will investigate the size and different aspects of small firms in Kampung Air Batang, Tioman Island, and is about to search for networking activities within local community which is affecting competitiveness factors of study area. A qualitative research method was used for the study and the respondents who were owner/managers of chalet accommodation firms were the main source of study`s primary data. A semi-structured in depth interview with owner/managers in Kampung Air Batang was used for data collection. Local community has been involved in tourism business since a few decades ago and has successfully established their family businesses. As all the participants involved in tourism activities of this area are family members, very close relatives or friends and within a limited area of village with ethnic linkages they have formed an informal network within themselves. Based on the trust and informal ties owner/managers are benefiting from these networking activities as they freely share business-related matters with other members of the network. Receiving financial support from family members as well as help and advice from friends and relatives are the main motivate factors that persuade them to participate in a network. The network has even influenced the competitive environment of the village. The whole tourism and hospitality community members agreed on by having these ties within themselves they have been collaborating rather than competing each other and have competed well with other villages in the island.