Entrepreneurial intensity as a business success factor in the travel industry in South Africa.

Abstract

Corporate Entrepreneurship (CE), which generally refers to the advancement of new opportunities and ideas within established organisations, has been widely researched across industries and organisations worldwide. However, the concept is not as widely researched in the travel industry within the context of South Africa. Traditional corporate organisations have tended to rather focus on continuous improvement of operational effectiveness as opposed to the enhancement of innovation and new opportunities in a rapidly changing competitive environment based on evolving customer needs. The integration of the entrepreneurial mind-set and behaviours into the formulation and execution of business strategies has been shown to ensure businesses gain and maintain positions of leadership in their markets. This study examines the existence and level of corporate entrepreneurship within the South African travel industry and whether this concept is perceived as a successful business factor for the industry. Data for this study was collected via semi-structured, face-to-face interviews with 11 senior representatives in the sector, including destination management, touring and hospitality organisations. Purposive sampling was used to identify the participants and the data was then analysed using thematic content analysis. The findings of this study revealed that key drivers of corporate entrepreneurship within the industry and companies, are the kind of leadership and behaviours demonstrated by the senior management and chief executive officers of the businesses. There are also a number of factors affecting whether the organisation favours corporate entrepreneurship, such as financial stability of the organisation, whether or not rewards and recognition are directly linked to innovation, risk appetite and time available for creativity and innovation. The study concludes that the pillars and behaviours of corporate Entrepreneurial Orientation (EO) (being innovation, risk-taking and proactivity),whilst widely demonstrated by senior leaders, does not automatically transfer to all levels within ii the organisation, especially the lower levels. The transfer of which, could help to effectively mobilise the organisation to benefit from the ability to rapidly adapt and evolve.