A Strategic Framework for Business Model Pivot and Value Co-Creation: Evidence from Traditional Travel Agencies in Indonesia
Article Sidebar
Main Article Content
Abstract
This study examines the strategic mechanisms that drive traditional travel agencies to pivot their business models in response to relentless digital disintermediation. By integrating Service-Dominant (S-D) Logic and Dynamic Capabilities theory, the research evaluates how internal orientations and collaborative processes enable traditional intermediaries to reclaim market relevance as Experience Architects. Using a quantitative research design, data were collected from 200 owners, directors, and senior managers of traditional travel agencies across Indonesia's primary tourism hubs. To ensure statistical rigor, the sample size was validated using G*Power 3.1, confirming its adequacy for detecting medium effect sizes within the complex structural model. The proposed structural model was assessed using Partial Least Squares Structural Equation Modeling (SEM-PLS), supplemented by an Importance-Performance Map Analysis (IPMA) to identify critical strategic priorities. The results demonstrate that while Digital Capability serves as a necessary operational foundation, it is not the primary driver of a strategic transformation. Instead, Value Co-Creation and Strategic Flexibility are found to be the dominant catalysts for a successful Business Model Pivot. Specifically, Value Co-Creation exerts a substantial influence, reinforcing the argument that a successful pivot is a relational achievement rooted in human-tech synergy rather than a purely technological one. Furthermore, the results confirm that a structured Business Model Pivot leads to a significant and sustained Competitive Advantage. This research contributes to the tourism management literature by providing a novel framework that bridges entrepreneurial intent with co-creative execution. It offers a practical roadmap for traditional travel agencies to transition from legacy ticketing brokers to specialized experience architects within a smarter tourism ecosystem.
Article Details
References
Abdullatif, M., & Masri, H. (2024). Strategic Flexibility: Mediating Entrepreneurial Orientation and SME Performance in Bahrain. 2024 ASU International Conference in Emerging Technologies for Sustainability and Intelligent Systems, ICETSIS 2024, 403–409. https://doi.org/10.1109/ICETSIS61505.2024.10459573
Barney, J. (1991). Firm Resources and Sustained Competitive Advantage. Journal of Management, 17(1), 99–120. https://doi.org/10.1177/014920639101700108
Buhalis, D., & Sinarta, Y. (2019). Real-time co-creation and nowness service: lessons from tourism and hospitality. Journal of Travel & Tourism Marketing, 36(5), 563–582. https://doi.org/10.1080/10548408.2019.1592059
Chutiphongdech, T. (2021). Airport technical efficiency and business model innovations: A case of local and regional airports in thailand. European Journal of Tourism Research, 28. https://doi.org/10.54055/ejtr.v28i.1981
del Vecchio, P., Malandugno, C., Passiante, G., & Sakka, G. (2022). Circular economy business model for smart tourism: the case of Ecobnb. EuroMed Journal of Business, 17(1), 88–104. https://doi.org/10.1108/EMJB-09-2020-0098
Foss, N. J., & Saebi, T. (2017). Fifteen Years of Research on Business Model Innovation. Journal of Management, 43(1), 200–227. https://doi.org/10.1177/0149206316675927
Hair, J., Hult, G. T. M., Ringle, C., & Sarstedt, M. (2022). A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM) (3rd ed.). Sage Publications, Inc.
Hsu, A. Y., King, B., & Wang, D. (2024). Adaptability among inbound tour operators in a disrupted business environment. R&D Management, 54(4), 791–808. https://doi.org/10.1111/radm.12595
Hsu, W.-L., Chang, Y.-J., Mou, L., Huang, J.-W., & Liu, H. (2024). The Distribution and Accessibility of Elements of Tourism in Historic and Cultural Cities. Big Data and Cognitive Computing, 8(3), 29. https://doi.org/10.3390/bdcc8030029
Lumpkin, G. T., & Dess, G. G. (1996). Clarifying the Entrepreneurial Orientation Construct and Linking It to Performance. The Academy of Management Review, 21(1), 135. https://doi.org/10.2307/258632
Marks, J., & Golovey, E. (2020). Entrepreneurial Resources as a Driver of Performance Differences in a Quick Service Restaurant Franchise System. African Journal of Hospitality, Tourism and Leisure, 9(5), 1111–1130. https://doi.org/10.46222/AJHTL.19770720-72
Miller, D. (1983). The Correlates of Entrepreneurship in Three Types of Firms. Management Science, 29(7), 770–791. https://doi.org/10.1287/mnsc.29.7.770
Neupane, B. P., Zielinski, S., & Milanes, C. B. (2025). Startup Success in Hospitality & Tourism SMEs in Emerging Economies: How Innovation and Growth Are Driven by Entrepreneurial Orientation, Networking Strategy, Leadership, and Flexibility. Sustainability (Switzerland), 17(8). https://doi.org/10.3390/su17083485
Noer, M. Y., Chan, A., Tresna, P. W., & Purbasari, R. (2025). Digital marketing and sustainable innovation in SMEs through bibliometric and systematic review. Cogent Business and Management, 12(1). https://doi.org/10.1080/23311975.2025.2548953
Prahalad, C. K., & Ramaswamy, V. (2004). Co-creation experiences: The next practice in value creation. Journal of Interactive Marketing, 18(3), 5–14. https://doi.org/10.1002/dir.20015
Prikshat, V., Okumus, F., & De Martino, M. (2025). Sustainable circular innovation ecosystem for hospitality and tourism. Tourism Review. https://doi.org/10.1108/TR-01-2025-0035
Ries, E. (2011). The Lean Startup: How Today’s Entrepreneurs Use Continuous Innovation to Create Radically Successful Businesses (1st editio). Crown Publishing Group.
Ringle, C. M., & Sarstedt, M. (2016). Gain more insight from your PLS-SEM results. Industrial Management & Data Systems, 116(9), 1865–1886. https://doi.org/10.1108/IMDS-10-2015-0449
Santarsiero, F., Carlucci, D., Lerro, A., & Schiuma, G. (2024). Navigating digital transformation and business model innovation in the tourism sector: challenges opportunities, and leadership styles. Measuring Business Excellence, 28(3/4), 426–438. https://doi.org/10.1108/MBE-09-2023-0137
Santarsiero, F., Carlucci, D., & Schiuma, G. (2024). Driving digital transformation and business model innovation in tourism through innovation labs: An empirical study. Journal of Engineering and Technology Management, 74, 101841. https://doi.org/10.1016/j.jengtecman.2024.101841
Teece, D. J. (2018). Business models and dynamic capabilities. Long Range Planning, 51(1), 40–49. https://doi.org/10.1016/j.lrp.2017.06.007
Vargo, S. L., & Lusch, R. F. (2016). Institutions and axioms: an extension and update of service-dominant logic. Journal of the Academy of Marketing Science, 44(1), 5–23. https://doi.org/10.1007/s11747-015-0456-3
Yao, J., Pang, Q., & Zhang, Y. (2025). Leveraging digital technology for integration: innovating tourism business models for multi-stakeholder value co-creation. Current Issues in Tourism. https://doi.org/10.1080/13683500.2025.2590590
ZHOU, K. Z., & WU, F. (2010). Technological Capability, Strategic Flexibility, And Product Innovation. Strategic Management Journal, 31(5), 547–561. http://www.jstor.org/stable/40587598