The Influence of Capability, Business Innovation, and Competitive Advantage on a Smart Sustainable Tourism Village and Its Impact on the Management Performance of Tourism Villages on Java Island

Abstract

Tourism has become one of the biggest industries in the world. Many people carry out tourism activities for relaxation, fulfilling curiosity, gaining new experiences, and entertainment purposes (pleasure). This study analyzes the effect of capability, business innovation, and competitive advantage on a smart sustainable tourism village and the impact this has on the management performance of independent tourism villages on Java Island. The methods used in this study include descriptive statistical tests and structural equation modeling (SEM) tests operated through the AMOS program. The sample included 360 respondents who were managers of tourist villages on the island of Java. The questionnaire was determined based on the probability sampling method and non-probability sampling, namely, simple random sampling and convenience sampling. From various aspects and criteria, the data proved that the average value generated from the research unit produced a score of 4, which means good. The results revealed three influential variables: tourism village capability having a positive and significant effect on the smart sustainable tourism village; the smart sustainable tourism village having a positive and significant effect on tourism village management performance; and business innovation having a positive and significant effect on tourism village management performance.

Development of World Economy, Marketing and Management in Modern Conditions

“…It represents a conscious effort to harmonize economic development, environmental preservation, and social inclusion in tourism activities. By prioritizing environmental conservation, respecting local cultures, and empowering communities, sustainable tourism offers a path toward a more responsible and resilient industry [186]. As travelers, industry stakeholders, and policymakers embrace the principles of sustainable tourism, they contribute to the long-term viability of destinations and the well-being of host communities.…”