Effects of perceived threat of informal entrepreneurs in improving operational performance and customer bonding of formalised firms through service quality

Underpinned by resource-based and disruptive innovation theories, this study examines the effects of informal players' perceived threat on the formalized tour operators' operational performance and customer bonding. The study involved a sample size of 130, collected from the inbound tour operators in Zanzibar. Using partial least squares (PLS-SEM) to analyze the data, our study found that the perceived threat of informal players is positively associated with service quality, which is linked to increased operational performance. Equally, operating performance was found to have a direct positive impact on customer bonding. While perceived threat directly enhances operational performance, customer bonding is only enhanced through service quality. Finally, the study advances the literature on tourism by providing theoretical and practical implications and recommending future studies.

Automated summary

Based on resource-based and disruptive innovation theories, this study examined the influence of perceived threat from informal players on the operational performance and customer bonding of formalized tour operators. Data was collected from 130 inbound tour operators in Zanzibar and analyzed using partial least squares (PLS-SEM). The results showed a positive association between perceived threat of informal players and service quality, which leads to improved operational performance. Additionally, operational performance was found to directly impact customer bonding, while perceived threat only indirectly enhances customer bonding through service quality.