The Impact of Perceived Threat of Informal Actors, Core Competencies and Coopetition on Tourism Service Quality

Abstract

Many developing countries' tourism economies rely heavily on the informal sector.
This includes the set of economic activities, often but not exclusively carried out in
small firms or by the self-employed, that evade government requirements such as
registration, tax and social security obligations, and health and safety regulations,
known as informal actors. Both informal and formal players collaborate with one
another through mutual trust and shared resources, which has the potential to improve
resource utilization and efficiency. This study aims to investigate the impact of
cooperative practices on tourism service quality, examine how informal actors
influence cooperative practices and service quality, and analyze the role of core
competencies among formal actors in shaping tourism service quality and cooperative
dynamics. With 165 participants, this quantitative study made use of SPSS and
structural equation modelling. We find that firms' core competencies influence
tourism service quality, whether through coopetition or direct relations, whereas
informal actors' threat influences tourism service quality solely through coopetition.
The factors that contribute the most in: 1) core competencies are marketing, finance,
and human resource competence; 2) perceived threat of informal actors are market
competitiveness, the existence of informal actors, impersonators of informal actors,
and price competitiveness; 3) coopetition are market commonality, resource
similarity, and willingness to cooperate; and 4) tourism service quality are assurance,
responsiveness, and empathy. This research contributes to the strategic management
literature by expanding on basic game theory, transactional cost theory, resourcebased theory, dynamic capabilities theory, and social network theory, all of which
have the potential to lead to win-win situations and mutual benefits.