Managerial orientations and business performance in small and medium tourism accommodation businesses (SMTABs): A resource advantage-knowledge creation approach

Abstract

The use of the resource-advantage theory by businesses has come to be a standard tool for forging business advantage over the past 30 years. However, the benefits of managerial orientation and the knowledge creation process may be context-specific as opposed to being common worldwide. In contrast to large organizations, small- and medium-sized businesses have a higher dependency on their internal resources. This article discusses the situation of converting owner-managers’ entrepreneurial orientation and brand orientation into superior business performance (BP) using the resource advantage-knowledge creation approach. It is found that owner-managers of Malaysian small and medium tourism accommodation businesses (SMTABs) are entrepreneurial but less brand-orientated. Yet a better result would arise when entrepreneurship and brand orientation are integrated to encourage a knowledge creation process that directly influences BP. This article suggests that SMTAB owner-managers should make more effort in honing their managerial orientation. The findings of this study can only be generalized to developing nations.