Cogent Business & Management (Dec 2023)

The role of resource structuring, marketing, and networking capabilities in forming DMO orchestration capability toward sustainable value creation

  • Boy Bayu Idisondjaja,
  • Sari Wahyuni,
  • Harris Turino

DOI
https://doi.org/10.1080/23311975.2023.2288381
Journal volume & issue
Vol. 10, no. 3

Abstract

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AbstractThe study investigates the formation of Destination Management Organization (DMO) orchestration capability under the influence of environmental forces to achieve sustainable value creation. The study suggests that the DMO’s orchestration capabilities, encompassing resource structuring, marketing, and networking capability, significantly influence the achievement of sustainable value creation as a strategic destination performance. Networking capability, in particular, plays a vital role as a mediator in this process. Social-cultural preservation becomes the primary concern of DMOs in their efforts to attain sustainable value creation. Notably, environmental forces significantly affect destination orchestration capabilities, except for marketing capability, which the unprecedented research context may influence. The study surveyed respondents who are top management executives of DMOs, encompassing 153 DMOs from various destinations in Indonesia. The novel findings of this study empirically establish that integrating three core capabilities—resource structuring, marketing, and networking—shapes the orchestration capabilities of Destination Management Organizations (DMOs) in response to environmental pressures. It extends and enhances our understanding of the determinants of destination management that lead to the strategic performance goal of sustainable value creation. From a managerial standpoint, the role of a destination organization’s manager is pivotal in the comprehensive development and shaping of the three pillars of orchestration capability. Mere mastery and practice of one of these pillars, or the neglect of any, amplify the risk of failing to attain the desired sustainable value creation. The research context in Indonesia, as a developing country with a noteworthy surge in the tourism sector, lends significant relevance to this study.

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