Information communication technology adoption and business performance of tour operators in malaysia

Abstract

The survival of tour operators depends very much on their adaptation to changes in tourists’ preferences and demands. Previous studies have shown mixed findings on the adoption ability of tour operators of different adopter categories namely innovator, early adopter, early or late majority, and laggards, to sustain their business performance with changes in information communication technology (ICT). A review of the literature has also indicated a lack of ICT adoption studies that measure adoption ability of tour operators in identifying their varying characteristics that relate to their business performance. Therefore, this research aims to explore the relationships between ICT adoption, company profiles and adoption characteristics of Malaysian tour operators, and their business performance. A quantitative technique of a structured questionnaire was used to elicit five variable parameters namely company profiles, ICT adoption, the contributing factors, adoption characteristics and business performance. A pilot test was conducted to validate the variables that were adapted into a structural scale to assist in data collection. A total of 285 tour operator companies that were identified from the registered members of the Malaysian Association of Tour and Travel Agents (MATTA) and from the Ministry of Culture and Tourism Malaysia answered the questionnaire. Findings showed little difference between new and older tour operators in terms of ICT adoption. However, in the context of ICT adoption and business performance, there were specific divergences between the two, particularly when focusing on company age and adoption characteristics. Findings also suggest that company profiles, particularly age element and adoption characteristics have a large influence on Malaysian tour operators’ ICT adoption towards business performance. Findings also found that there were hidden elements that were not covered in the existing elements of adoption characteristics, namely smartness and the generation gap. This study contributes to the enhancement of the understanding of factors contributing to ICT adoption and business performance among Malaysian tour operators.