Navigating turbulent waters: The impact of business continuity management (BCM) practices on financial and nonfinancial performance of tour operator companies

Abstract

This study examines the influence of Business Continuity Management (BCM) practices on tour operator companies' financial and nonfinancial performance amid the COVID‐19 pandemic. Employing purposive and cluster sampling, a survey was conducted with 331 tour operators, and the study hypotheses were evaluated using Partial Least Squares—Structural Equation Modelling. Findings reveal that the organizational preparedness and embeddedness of continuity practices significantly influence both financial and nonfinancial performance. Additionally, management support and external requirements impact either financial or nonfinancial performance. The study reveals tour operator companies' resilience demonstrated through their continuity management skills, particularly in adapting to business challenges during the pandemic. The research contributes a fresh perspective on the interplay between BCM practices and organizational performance, emphasizing the importance of robust business continuity strategic planning for the future of tourism operator companies.