The Need of Entrepreneurship Orientation for Sustainability

Tourism Destination in Tourism Awareness Groups

Glory Aguzman

, Lim Sanny

, Yuli Eni

and Agung Hari Sasongko

BINUS Entrepreneurship Center, Management Department, Bina Nusantara University, Jakarta, Indonesia

Business Management Program, Management Department, BINUS Business School Master Program,

Bina Nusantara University, Jakarta, Indonesia

Management Department, BINUS Business School Undergraduate Program, Bina Nusantara University,

Jakarta, Indonesia

Keywords: Entrepreneurship Orientation, Sustainability, Tourism Destination.

Abstract: This research investigates whether entrepreneurial Orientation is needed and cared for by tourism awareness

groups (Pokdarwis). In the era of the COVID-19 pandemic, researchers indicated that a destination must still

be sustainable. Indonesia is a country receiving foreign exchange from its tourism proceeds; therefore, a

tourist destination to maintain a tourism business must be realized. Entrepreneurial Orientation is an ability

that Pokdarwis must-have, and in this study, the researchers tried to explore how big the view of tourist

destinations depends on entrepreneurial Orientation is. The analysis used is to use SPPS, which will look at

the two-way and three-way analysis of the relationship between tourist destinations and entrepreneurial

Orientation. The sample used covers four villages, namely two villages in Bali and two villages in Yogyakarta

with a total of 283 respondents, and the result is a two-way analysis that states Significance between tourist

destinations with entrepreneurial Orientation and three-way analysis, namely tourist destinations with

entrepreneurial Orientation towards the sustainability of tourist destinations. The results of two villages are

not significant and two villages significant so two ways and three ways want to find out what happened.

1 INTRODUCTION

In the era of the Covid-19 pandemic, researchers

indicated that a destination must still be sustainable.

Indonesia is a country receiving foreign exchange

from its tourism proceeds; therefore, a tourist

destination to maintain a tourism business must be

realized. Achieving sustainable tourism requires

support from various parties involved: the tourism

industry and various interest groups from public

sector institutions to community groups (Dolnicar

and Long, 2009). Some of the goals of sustainable

tourism are economically sustainable, socio-cultural

sustainable, and sustainable resources. Sustainable

goals and resources are shared between the tourism

industry and the environment and local occupation,

government agencies (W.T.O., 1993). According to

Roxas Chadee (2013), entrepreneurial Orientation

provides a mechanism through formal institutions in

influencing performance in the tourism sector. This

study will contribute to finding out whether

entrepreneurial Orientation can directly influence the

sustainability of tourist destinations. The researcher

also indicated that the understanding of and the ability

of entrepreneurial praxis of the leaders and members

of Pokdarwis and the local community seems to have

still to be developed.

To achieve the sustainability of tourist

destinations in the Covid-19 pandemic era, tourism

awareness institutions have an entrepreneurial

orientation that is considered capable of creating the

sustainability of tourist destinations in their

respective regions but when researchers try to prove

the hypothesis the result is not significant. So the

researcher wants to make sure why it is not

significant, by using two way and three ways analisis

expected to find the answer.

2 LITERATURE REVIEW

Tourism development produces benefits that

contribute to regional development, but tourism

development touches the various stakeholders,

164

Aguzman, G., Sanny, L., Eni, Y. and Sasongko, A.

The Need of Entrepreneurship Orientation for Sustainability Tourism Destination in Tourism Awareness Groups.

DOI: 10.5220/0011242200003376

In Proceedings of the 2nd International Conference on Recent Innovations (ICRI 2021), pages 164-168

ISBN: 978-989-758-602-6

facilities, and resources that participate in it. These

elements must be managed correctly and adequately

to smooth the path to sustainable development

(Chatkaewnapanon and Kelly, 2019). Tourism

Village is a type of tourism that occurs outside the

city area and includes the natural and cultural heritage

of rural areas that issues initiatives that have social,

economic, and environmental implications (Quaranta

et al., 2016).

The concept of entrepreneurial Orientation has

emerged as an approach to entrepreneurial behavior

and has been injected into a company or organization

running (Logue et al., 2017). In this study, Pearce et

al. Said that entrepreneurial Orientation is

conceptualized as a set of different behaviors but is

related to having the qualities of innovating, being

proactive, aggressive, competitive, risk-taking, and

Autonomy. Lumpkin Dess (1996); Covin et al (2006)

in Fadda (2018) said that entrepreneurial Orientation

shows that some activities that are considered

entrepreneurial development within the company are

to influence the decision of the company’s action and

performance processes. The construction of an

entrepreneurial orientation consists of five

dimensions consisting of: innovation, proactive,

competitive aggression, risk-taking, and Autonomy,

with descriptions (Kreiser et al., 2010; Karimi et al.,

2016; Covin et al., 2006). Innovation, the company’s

efforts to find product opportunities and make process

improvements. Proactive, the company’s efforts to

recognize and seize it. Competitive, which is

aggressive: refers to the company’s efforts to

outperform its competitors. Risk-taking refers to the

willingness to venture into the unknown without

definite knowledge of possible outcomes, Autonomy:

refers to the independence needed to explore

opportunities.

Entrepreneurial Orientation affects a company’s

strategy in achieving its performance but does not

directly improve a company’s performance results

(Sahin and Gurbuz, 2020). Entrepreneurial

Orientation refers to the strategic process to gain a

competitive advantage (Nabi et al., 2018). In previous

studies, it was also stated that the entrepreneurship

sector strengthens tourism sustainability in an area

but not capability. In this study, the hypothesis will

be tested for its Significance. Thus hypothesis seven

can be built, namely that entrepreneurial Orientation

has a positive effect on the sustainability of tourist

destinations. Tourism development not only produces

benefits that contribute to regional development but

tourism development touches the various

stakeholders, facilities, and resources that participate

in it, these elements must be managed properly and

correctly in order to smooth the path to sustainable

development To achieve the goals of sustainable

development in a developing country, a community-

based ecotourism focus that is more locally controlled

and participatory contributes to sustainable

development (Twining-Ward and Butler, 2010).

Tourism will provide sustainability to an area if

tourism contributes to ecological, socio-cultural and

economic goals (Garcia-melon et al., ).Since the

emergence of sustainability as a benchmark for

tourism development, indicator parameters have

emerged which are used as a means of measuring the

impact of tourism (Zafra, 2001). Stakeholder

participation is an indicator of environmental

variables that are used as a determining factor for the

sustainability of tourism areas (Pasape et al., 2014).

Sustainable rural development depends on

agricultural produce which is the main activity of a

village (Adiakurnia, 2018). Tourism sustainability is

placing activities at the intersection of marketing,

infrastructure, programs and policies that are

simultaneously environmentally acceptable, socially

acceptable, and economically viable, this definition

implies the development of several businesses that are

cut from one another so as to achieve social and

economic goals (Chatkaewnapanon and Kelly, 2019).

Entrepreneurial orientation affects a company’s

strategy in achieving its performance but does not

directly improve a company’s performance results

(Sahin and Gurbuz, 2020).

Based on the results of literature review, a

hypothesis can be formed:

H1: Entrepreneurial orientation can affect the

sustainability of tourist destinations.

3 METHODS

In this study, researchers have determined four tourist

destinations: Pemuteran Tourism Village, Bali,

Panglipuran Tourism Village, Bali, Pentingsari

Nglanggeran Tourism Village, Yogyakarta. The

reason the researchers determined the 4 (four) tourist

destinations is because the four tourist destinations,

respectively, two Tourism Villages in Bali and

Yogyakarta, are included in the 100 (one hundred)

major sustainable destinations in the world by the

global version of Green Destination Days (GGDD).

The Sustainable Destination Top 100 award is an

annual Green Destination program that aims to

showcase success stories and sustainable tourism

practices from tourism destinations worldwide

(Adiakurnia, 2018).

The Need of Entrepreneurship Orientation for Sustainability Tourism Destination in Tourism Awareness Groups

165

Respondents are representatives, members, and

people involved in tourism both in their activities and

in their work but are still within the scope of tourism

awareness groups. This sample was taken using the

non-probabilities sampling method, namely

purposive sampling, which is following the research

objectives. The details are Deputy Chairperson of

Pok- darwis, Pokdarwis members, homestay owners,

food and beverage UKM owners, souvenir UKM

owners, restaurant owners, travel owners, farmers, art

workers, and other workers related to tourism in their

region. Calculation with Bartlett Continuous Data. In

addition to using indicators in measuring variables,

this research questionnaire is equipped with several

questions about demographic data as characteristics

such as the name of tourist destination, occupation,

gender, length of stay, age, length of stay around the

tourist destination area. The questions used are closed

questions.

Data processing was done by testing the reliability

and validity at the beginning and continuing

respondents’ questions. The result of the

questionnaire is a descriptive analysis processed

using SPSS. The total respondents were 283 people

from four tourist villages. The results achieved are

expected results based on the respondent’s work, two

ways analysis between tourism villages with

entrepreneurial Orientation, and three ways analysis

between tourism villages with entrepreneurial

Orientation towards the sustainability of tourist

destinations.

4 FINDING AND DISCUSSION

Before distributing the questionnaire according to the

concluded target, the researcher conducted a validity

and reliability test first using SPSS when the number

of questionnaires obtained was 70 respondents as a

pretest after testing, the results obtained were:

Furthermore, the resulting R table = 0.23, with the

results 0.987

> 0.23, it can be concluded that the data

is reliable; that is, questions can be asked to

respondents. Moreover, the resulting R table = 0.23,

the Corrected item-total Correlation results show that

the questionnaire produces valid data. Based on the

two test results above, it is concluded that the

questionnaire can be redone to achieve the target

respondents required by the researcher. Respondents

who work as members of Pokdarwis are the largest

respondents, with a total of 68 (sixty-eight)

respondents or 24% of the 283 respondents. The

second-largest number of respondents was as

homestay owners, as many as 60 (sixty) respondents

or 21% of 283 (two hundred eighty-three)

respondents. Other business units related to tourism

are 55 (fifty-five) respondents or 19% of 283 (two

hundred eighty-three) respondents. The restaurant

owner and beverage UKM totaled 39 (thirty-nine)

respondents or 14% of 283 (two hundred eighty-

three) respondents. Furthermore, for farmers whose

rice fields are usually used for game areas and their

rice fields are intended for tourism activities, the

respondents were 18 (eighteen) respondents or 6% of

283 (two hundred and eighty-three) respondents.

Professions or occupations such as the owner of

souvenir UKM, owner of the diving rental equipment

and their activities, restaurant owner, owner of a

cultural center, and travel owner are also respondents

in this research. Besides, those are professions or joint

occupations described above.

Table 1: The Result of Hypothesis.

Hypothesis

Original

Sam

t Stat P-value

Entrepreneuri

l orientation

can affect the

sustainability

of tourist

destinations

0.047 0.438 0.662 (not sig)

In this case, the insignificant research result

becomes a phenomenon so that it must be explored

again, namely by using two ways and three ways

analysis.

4.1 Two Ways Analysis of Names of

Tourist Destinations on

Entrepreneurship Orientation

Table 2: Chi-Square Tests Names of Tourist Destinations

on Entrepreneurship Orientation.

Value df

Asymptotic

Significance

(2-sided)

Pearson Chi-

Square

215.110

99 .000

Likelihood

Ratio

234.096 99 .000

Based on the table above, it can be explained that in

this context, the chi-square output is given a chisquare

value of 215,110, with a P-value of 0,000 (shown in

the Asymp. Sig. (2-sided) column in the SPSS

output). This P-value compared to the significance

level used in this study was 0.05 or 5%. Based on this,

it can be argued that there is a relationship between

the name of the tourist destination and the

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Entrepreneurship Orientation at the 5% significance

level (P-value

<α = 5%) so that it can be interpreted

that each tourist destination agrees with the

Entrepreneurship Orientation in leading tourism

awareness organizations.

Three Ways Analysis, In this discussion, the

researcher discusses the relationship of

entrepreneurial Orientation to the sustainability of

tourist destinations based on the views of four tourist

destinations and gender.

Based on the data above, entrepreneurial

Orientation towards the sustainability of tourist

destinations has a significant relationship with the

male or female gender. Male gender can be seen from

the Pearson correlation value (0.001 ¡0.05), where the

value of the degrees of freedom of a sample for the

male sex is 512, and the female gender is 312. In total,

there is a significant relationship between

entrepreneurial Orientation and sustainability of

tourist destinations.

These results prove that entrepreneurial

Orientation towards the sustainability of tourist

destinations is related to the chi-square test results. So

it can be proven that the most significant influence for

entrepreneurial Orientation on the sustainability of

tourist destinations is on the gender of men or women.

Table 3: Chi-Square Test Name of Travel Destinations to

the Relationship between Entrepreneurship Orientation and

Tourism Destination Sustainability.

5 CONCLUSION

Entrepreneurial Orientation is a capability that must

be possessed by institutions engaged in tourism

awareness in each of their respective tourist

destinations. Innovation, Risk-taking, Aggressive,

Proactive, Autonomy are abilities that can make

organizations survive and remain sustainable in these

dynamic conditions, especially during the Covid-19

era. Of the four villages where the people involved

have various jobs, and in the two-way analysis, tourist

destinations state a significant relationship with

tourist destinations. Still, there is an insignificant

relationship during the three-way analysis, namely

the relationship between entrepreneurial Orientation

and destination sustainability. Village tourism that is

still not significant is Pentingsari village and

Panglipuran village.

The insignificant results in the two villages could

be why the hypothesis results are not significant. So

that the process towards sustainability, the two

villages must concentrate more on developing

entrepreneurship both for members of the tourism

awareness group or the community, namely with

more intense entrepreneurship training.

Entrepreneurial orientation does not affect the

sustainability of tourist destinations in an area. This

shows that regions with a high entrepreneurial

orientation do not always support the sustainability of

tourist destinations. In research, entrepreneurial

orientation affects the strategy of a company in

achieving its performance but does not directly

improve a company’s performance results.

Entrepreneurial orientation is an ability that is

implemented by leadership by an institution and

cannot stand alone to produce a goal.

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