IDEAS home Printed from https://ideas.repec.org/a/spr/jknowl/v15y2024i4d10.1007_s13132-024-01852-w.html
   My bibliography  Save this article

Transforming China’s Tourism Industry: The Impact of Industrial Integration on Quality, Performance, and Productivity

Author

Listed:
  • Yi Lu

    (Nanyang Institute of Technology)

Abstract

The global tourism industry has witnessed significant growth, with China emerging as a powerhouse in this sector. However, China’s tourism faces challenges related to service quality, market organization, technology adoption, and market share loss. To address these issues, there is a growing consensus between the government and the industry to promote high-quality tourism. This paper explores the phenomenon of industrial integration, where boundaries between sectors within the tourism industry blur, leading to the emergence of new collaborative models and novel forms of tourism. While previous research has primarily focused on the economic impacts of such integration, this study delves deeper into its effects on quality development, using empirical data at the enterprise level. The findings reveal that industrial integration has a substantial positive impact on the performance and productivity of Chinese tourism companies. Companies embracing integration strategies exhibit better financial performance, as evidenced by higher returns on equity (ROE) and total factor productivity (TFP). These integrated firms demonstrate improved financial strength, profitability, and overall operational efficiency. Unexpectedly, the study uncovers the significant role of residential tourism consumption in integration rates, highlighting the complex relationship between local demand and industry dynamics. The implications of this research extend to industry leaders and policymakers, advocating for a transformative approach to integrated tourism. It emphasizes the potential of cross-sectoral collaboration, digital technology adoption, talent development, and policy support in enhancing performance and sustainability. The study’s insights empower stakeholders to contribute actively to the future of China’s tourism industry, fostering a holistic and sustainable approach to integration that benefits all stakeholders. This research contributes to a deeper theoretical understanding of integration’s dynamics, enriching the discourse on the interconnected factors driving integrated tourism models.

Suggested Citation

  • Yi Lu, 2024. "Transforming China’s Tourism Industry: The Impact of Industrial Integration on Quality, Performance, and Productivity," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(4), pages 18116-18153, December.
  • Handle: RePEc:spr:jknowl:v:15:y:2024:i:4:d:10.1007_s13132-024-01852-w
    DOI: 10.1007/s13132-024-01852-w
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s13132-024-01852-w
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.

    File URL: https://libkey.io/10.1007/s13132-024-01852-w?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Johannes Welling & Þorvarður Árnason & Rannveig Ólafsdóttir, 2020. "Implications of Climate Change on Nature-Based Tourism Demand: A Segmentation Analysis of Glacier Site Visitors in Southeast Iceland," Sustainability, MDPI, vol. 12(13), pages 1-19, July.
    2. Xiaoping Zhuang & Yong Yao & Jun (Justin) Li, 2019. "Sociocultural Impacts of Tourism on Residents of World Cultural Heritage Sites in China," Sustainability, MDPI, vol. 11(3), pages 1-19, February.
    3. Jayant Menon & Anna Fink, 2019. "The Fourth Industrial Revolution and Its Implications for Regional Economic Integration in ASEAN," Journal of Asian Economic Integration, , vol. 1(1), pages 32-47, April.
    4. Fai, Felicia & von Tunzelmann, Nicholas, 2001. "Industry-specific competencies and converging technological systems: evidence from patents," Structural Change and Economic Dynamics, Elsevier, vol. 12(2), pages 141-170, July.
    5. Liu, Jicheng & Lin, Xiangmin, 2019. "Empirical analysis and strategy suggestions on the value-added capacity of photovoltaic industry value chain in China," Energy, Elsevier, vol. 180(C), pages 356-366.
    6. Caviggioli, Federico, 2016. "Technology fusion: Identification and analysis of the drivers of technology convergence using patent data," Technovation, Elsevier, vol. 55, pages 22-32.
    7. Wang, Yonggui & Hong, Aoran & Li, Xia & Gao, Jia, 2020. "Marketing innovations during a global crisis: A study of China firms’ response to COVID-19," Journal of Business Research, Elsevier, vol. 116(C), pages 214-220.
    8. Nagalingam Nagendrakumar & Kalubowilage Navodya Nilupulee Alwis & Udage Arachchige Kaveesha Eshani & Seekku Baduge Ushani Kaushalya, 2022. "The Impact of Sustainability Practices on the Going Concern of the Travel and Tourism Industry: Evidence from Developed and Developing Countries," Sustainability, MDPI, vol. 14(24), pages 1-21, December.
    9. Sheryl Rose C. Reyes & Aya Miyazaki & Evonne Yiu & Osamu Saito, 2020. "Enhancing Sustainability in Traditional Agriculture: Indicators for Monitoring the Conservation of Globally Important Agricultural Heritage Systems (GIAHS) in Japan," Sustainability, MDPI, vol. 12(14), pages 1-28, July.
    10. Mark Anthony Camilleri, 2021. "Sustainable Production and Consumption of Food. Mise-en-Place Circular Economy Policies and Waste Management Practices in Tourism Cities," Sustainability, MDPI, vol. 13(17), pages 1-13, September.
    11. Zakaria Nejjari & Hanane Aamoum, 2023. "The Impact of Intellectual Capital on Profitability, Market Value, Productivity, and Return on Equity: Empirical Evidence from Moroccan ICT Firms," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 14(2), pages 1734-1748, June.
    12. Vivek Ghosal, 2015. "Business Strategy and Firm Reorganization: Role of Changing Environmental Standards, Sustainable Business Initiatives and Global Market Conditions," Business Strategy and the Environment, Wiley Blackwell, vol. 24(2), pages 123-144, February.
    13. Tonino Pencarelli, 2020. "The digital revolution in the travel and tourism industry," Information Technology & Tourism, Springer, vol. 22(3), pages 455-476, September.
    14. Ali Bavik & Chen-Feng Kuo, 2022. "A systematic review of creativity in tourism and hospitality," The Service Industries Journal, Taylor & Francis Journals, vol. 42(5-6), pages 321-359, April.
    15. Qiumin Jiang & Chung-Shing Chan & Sarah Eichelberger & Hang Ma & Birgit Pikkemaat, 2021. "Sentiment analysis of online destination image of Hong Kong held by mainland Chinese tourists," Current Issues in Tourism, Taylor & Francis Journals, vol. 24(17), pages 2501-2522, September.
    16. Gambardella, Alfonso & Torrisi, Salvatore, 1998. "Does technological convergence imply convergence in markets? Evidence from the electronics industry," Research Policy, Elsevier, vol. 27(5), pages 445-463, September.
    17. Lidija Lalicic & Irem Önder, 2018. "Residents’ Involvement in Urban Tourism Planning: Opportunities from a Smart City Perspective," Sustainability, MDPI, vol. 10(6), pages 1-16, June.
    18. Kim, Namil & Lee, Hyeokseong & Kim, Wonjoon & Lee, Hyunjong & Suh, Jong Hwan, 2015. "Dynamic patterns of industry convergence: Evidence from a large amount of unstructured data," Research Policy, Elsevier, vol. 44(9), pages 1734-1748.
    19. Dalia Streimikiene & Biruta Svagzdiene & Edmundas Jasinskas & Arturas Simanavicius, 2021. "Sustainable tourism development and competitiveness: The systematic literature review," Sustainable Development, John Wiley & Sons, Ltd., vol. 29(1), pages 259-271, January.
    20. Yi Lu, 2022. "The Measurement of High-Quality Development Level of Tourism: Based on the Perspective of Industrial Integration," Sustainability, MDPI, vol. 14(6), pages 1-18, March.
    21. Batara Surya & Hernita Hernita & Agus Salim & Seri Suriani & Iwan Perwira & Yulia Yulia & Muhlis Ruslan & Kafrawi Yunus, 2022. "Travel-Business Stagnation and SME Business Turbulence in the Tourism Sector in the Era of the COVID-19 Pandemic," Sustainability, MDPI, vol. 14(4), pages 1-37, February.
    22. Nepal, Rabindra & al Irsyad, M. Indra & Nepal, Sanjay Kumar, 2018. "Tourist arrivals, energy consumption and pollutant emissions in a developing economy–implications for sustainable tourism," Working Papers 2018-10, University of Tasmania, Tasmanian School of Business and Economics.
    23. Bing Xia & Suocheng Dong & Duoxun Ba & Yu Li & Fujia Li & Haimeng Liu & Zehong Li & Minyan Zhao, 2018. "Research on the Spatial Differentiation and Driving Factors of Tourism Enterprises’ Efficiency: Chinese Scenic Spots, Travel Agencies, and Hotels," Sustainability, MDPI, vol. 10(4), pages 1-22, March.
    24. Rui Qu & Zaewoong Rhee & Seung-Jong Bae & Sang-Hyun Lee, 2022. "Analysis of Industrial Diversification Level of Economic Development in Rural Areas Using Herfindahl Index and Two-Step Clustering," Sustainability, MDPI, vol. 14(11), pages 1-19, May.
    25. Ming-Huei Chen & Hong-Yan Wang & Ming-Chao Wang, 2018. "Knowledge sharing, social capital, and financial performance: the perspectives of innovation strategy in technological clusters," Knowledge Management Research & Practice, Taylor & Francis Journals, vol. 16(1), pages 89-104, January.
    26. Leo Vashkor Dewri, 2022. "A Critical Assessment of Interrelationship Among Corporate Governance, Financial Performance, Refined Economic Value Added to Measure Firm Value and Return on Stock," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 13(4), pages 2718-2759, December.
    27. Hira, Andy & Busumtwi-Sam, James, 2021. "Improving mining community benefits through better monitoring and evaluation," Resources Policy, Elsevier, vol. 73(C).
    28. Zsuzsanna Bacsi & Lóránt Dénes Dávid & Zsolt Hollósy, 2022. "Industry Differences in Productivity—In Agriculture and Tourism by Lake Balaton, Hungary," Sustainability, MDPI, vol. 14(19), pages 1-19, September.
    29. Marco Valeri & Rodolfo Baggio, 2022. "Increasing the efficiency of knowledge transfer in an Italian tourism system: a network approach," Current Issues in Tourism, Taylor & Francis Journals, vol. 25(13), pages 2127-2142, July.
    30. Sigala, Marianna, 2020. "Tourism and COVID-19: Impacts and implications for advancing and resetting industry and research," Journal of Business Research, Elsevier, vol. 117(C), pages 312-321.
    31. Yu Zhuang & Shuili Yang & Asif Razzaq & Zeeshan Khan, 2022. "Environmental impact of infrastructure-led Chinese outward FDI, tourism development and technology innovation: a regional country analysis," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 66(2), pages 367-399, November.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kim, Juram & Kim, Seungho & Lee, Changyong, 2019. "Anticipating technological convergence: Link prediction using Wikipedia hyperlinks," Technovation, Elsevier, vol. 79(C), pages 25-34.
    2. Sick, Nathalie & Bröring, Stefanie, 2022. "Exploring the research landscape of convergence from a TIM perspective: A review and research agenda," Technological Forecasting and Social Change, Elsevier, vol. 175(C).
    3. Dejing Kong & Jianzhong Yang & Lingfeng Li, 2020. "Early identification of technological convergence in numerical control machine tool: a deep learning approach," Scientometrics, Springer;Akadémiai Kiadó, vol. 125(3), pages 1983-2009, December.
    4. Zhou, Yuan & Dong, Fang & Kong, Dejing & Liu, Yufei, 2019. "Unfolding the convergence process of scientific knowledge for the early identification of emerging technologies," Technological Forecasting and Social Change, Elsevier, vol. 144(C), pages 205-220.
    5. Jungpyo Lee & So Young Sohn, 2021. "Recommendation system for technology convergence opportunities based on self-supervised representation learning," Scientometrics, Springer;Akadémiai Kiadó, vol. 126(1), pages 1-25, January.
    6. Sick, Nathalie & Preschitschek, Nina & Leker, Jens & Bröring, Stefanie, 2019. "A new framework to assess industry convergence in high technology environments," Technovation, Elsevier, vol. 84, pages 48-58.
    7. Ying Tang & Xuming Lou & Zifeng Chen & Chengjin Zhang, 2020. "A Study on Dynamic Patterns of Technology Convergence with IPC Co-Occurrence-Based Analysis: The Case of 3D Printing," Sustainability, MDPI, vol. 12(7), pages 1-26, March.
    8. Pan, Maomao & Bai, Min & Ren, Xiaoxiao, 2022. "Does internet convergence improve manufacturing enterprises’ competitive advantage? Empirical research based on the mediation effect model," Technology in Society, Elsevier, vol. 69(C).
    9. Wang, Zhinan & Porter, Alan L. & Wang, Xuefeng & Carley, Stephen, 2019. "An approach to identify emergent topics of technological convergence: A case study for 3D printing," Technological Forecasting and Social Change, Elsevier, vol. 146(C), pages 723-732.
    10. Ali Zackery & Joseph Amankwah-Amoah & Zahra Heidari Darani & Shiva Ghasemi, 2022. "COVID-19 Research in Business and Management: A Review and Future Research Agenda," Sustainability, MDPI, vol. 14(16), pages 1-32, August.
    11. Seongkyoon Jeong & Jong-Chan Kim & Jae Young Choi, 2015. "Technology convergence: What developmental stage are we in?," Scientometrics, Springer;Akadémiai Kiadó, vol. 104(3), pages 841-871, September.
    12. Sanghoon Lee & Wonjoon Kim, 2017. "The knowledge network dynamics in a mobile ecosystem: a patent citation analysis," Scientometrics, Springer;Akadémiai Kiadó, vol. 111(2), pages 717-742, May.
    13. Navneel Shalendra Prasad & Nikeel Nishkar Kumar, 2022. "Resident Perceptions of Environment and Economic Impacts of Tourism in Fiji," Sustainability, MDPI, vol. 14(9), pages 1-20, April.
    14. Park, Mingyu & Geum, Youngjung, 2022. "Two-stage technology opportunity discovery for firm-level decision making: GCN-based link-prediction approach," Technological Forecasting and Social Change, Elsevier, vol. 183(C).
    15. Sasaki, Hajime & Sakata, Ichiro, 2021. "Identifying potential technological spin-offs using hierarchical information in international patent classification," Technovation, Elsevier, vol. 100(C).
    16. Kim, Namil & Lee, Hyeokseong & Kim, Wonjoon & Lee, Hyunjong & Suh, Jong Hwan, 2015. "Dynamic patterns of industry convergence: Evidence from a large amount of unstructured data," Research Policy, Elsevier, vol. 44(9), pages 1734-1748.
    17. Sebastian Eidam & Anja Redenz & David Sonius & Nicole vom Stein, 2017. "Ubiquitous Healthcare — Do the Health and Information Technology Sectors Converge?," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 14(06), pages 1-23, December.
    18. Basole, Rahul C. & Park, Hyunwoo & Barnett, Brandon C., 2015. "Coopetition and convergence in the ICT ecosystem," Telecommunications Policy, Elsevier, vol. 39(7), pages 537-552.
    19. Paolo Calvosa, 2021. "Entry, Exit and Innovation over the Industry Life Cycle in Converging Sectors: An Analysis of the Smartphone Industry," International Journal of Business and Management, Canadian Center of Science and Education, vol. 15(12), pages 151-151, July.
    20. Yingtong Chen & Fei Wu & Dayong Zhang & Qiang Ji, 2024. "Tourism in pandemic: the role of digital travel vouchers in China," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-15, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:jknowl:v:15:y:2024:i:4:d:10.1007_s13132-024-01852-w. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.