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Tourism firms’ financial performance is determined by a complex interplay of factors, both internal and external to the firm. Predominant internal factors are their entrepreneurial behavior and financial resources. External factors refer to the network of actors contributing to the tourism product as well as market and competitive uncertainties. Employing fuzzy-set qualitative comparative analysis (fsQCA) on quantitative data from a survey of 113 owner-managers of small and medium-sized tourism firms from Austria, this study investigates configurations of factors that lead to high firm performance. Results reveal six different configurations, which can be grouped into high or low environmental uncertainty settings and highlight the relevance of multidimensional Entrepreneurial Orientation (EO), financial endowment, and personal and professional networks. Using a sequential mixed-methods approach, 13 qualitative follow-up interviews with owner-managers from the sample help to gain deeper insights into the identified configurations and to formulate successful paths to higher tourism firm performance.
•Tourism firm performance is driven by factor configurations, with no one factor being sufficient on its own•Fuzzy-set Qualitative Comparative Analysis enables the derivation of factor configurations leading to high performance•The degree of environmental uncertainty affects the solutions to achieve higher firm performance•Multidimensional entrepreneurial orientation, financial resources and networks promise higher firm performance•Qualitative follow-up interviews help to interpret findings, label configurations and develop implications