The Challenge of Networking: Analysis of Innovation Potential in Small and Medium-Sized Tourism Enterprises

Small and medium-sized tourism enterprises (SMTEs) face the challenges of renewing business models to maintain competitiveness in the global economy. SMTE networking and product innovations are typical responses to these challenges. SMTE innovation processes and networking dynamics were analysed in the Saimaa Holiday network in the Savonlinna region of Finland. The Finnish Nationally Networked Centre of Expertise for Tourism (CET) networking model was used for the analysis. It was confirmed that innovation in SMTE networks was a synthetic process consisting of product, process and resource innovation. The network and its links to the university increased innovation potential and creativity in product innovation. Problem areas included business process development and ICT utilization.