1 MINISTRY OF EDUCATION AND TRAINING UNIVERSITY OF ECONOMICS HO CHI MINH CITY LE THAI SON RELATIONSHIP BETWEEN EXTERNAL RESOURCES, MICE DESTINATION RESOURCES AND MICE TOURISM DEVELOPMENT – CASE STUDY IN DALAT CITY Major : Business Administrative Code : 9340101 SUMMARY OF ECONOMIC DOCTORAL THESIS Ho Chi Minh City - 2019 The work was completed at: University of Economic, Ho Chi Minh City The scientific intructors: Assoc Prof Hà Nam Khánh Giao PhD Đinh Công Khải Reviewers 1: Reviewers 2: Reviewers 3: The dissertation will be defended in front of the Dissertation Evaluation Council of University of Economic of Ho Chi Minh city at 2019 The dissertation can also be found at: - National Library of Viet Nam - General Scientific Library of Ho Chi Minh city - Library of University of Economic, Ho Chi Minh city CHAPTER RESEARCH OVERVIEW 1.1 Research necessity MICE tourism (Meeting, Incentive, Conference, Exhibition) is an area in the tourism industry, and is a highly productive and efficient service sector of the tourism industry, being seen as a driving force to promote local and national economic development (Dwyer and Forsyth, 2008) This thesis focuses on studying destination resources, the research on tourism development to create development, but does not mention the direction of destination image research Resource theory was studied by many researchers (Haugland et al., 2011; Denicolai et al., 2010; Rusko et al., 2013) Studies have shown that a destination, relying on resources, can build and develop MICE tourism However, not much research focused on which resources that affect MICE tourism development at a destination Through the review of previous studies: Most studies in the direction of destination resources research conclude that destinations need resources to develop tourism, but does not indicate what kind of resources Haugland et al., (2011) emphasized the capability, cooperation and network relationship between destinations; Denicolai et al., (2010) emphasized on the core competencies of tourism, the correlationship between stakeholders to influence Ramgulam et al., (2012) also emphasized the relationship between stakeholders involved in MICE tourism activities Some of the other studies also underlined the resources of stakeholders to support tourism development at destinations Research on MICE tourism development often pays attention to the impacts of the economy, culture, society, environment but does not the same to the resources that the destination can rely on it to develop In order to have an obvious view on the resource-based theory to develop, this thesis will synthesize previous studies, build a theoretical theory and be verified by quantitative study in Dalat Developing MICE tourism in Dalat is one of the important strategic orientations in the socio-economic development of the locality and towards sustainable tourism development Therefore, studying the relationship between external resources and the resources of MICE destination affecting the development of MICE tourism in Da Lat is very necessary 1.2 Research objectives 1.2.1 Research objectives The specific research objectives of the thesis are: - Building the model of exteral relationship between external resources of suppliers, organizers, professional organizations, MICE tourists, resources of MICE destination and MICE tourism development at Dalat MICE destination - Testing the compatibility between the theory and data of the research model at Dalat MICE destination - Proposing governance implications for participating businesses that provide resources, along with resources of MICE destinations, to create MICE tourism development in the future 1.2.2 Research questions - How are the resources of suppliers, organizers, professional organizations, MICE visitors and MICE destination resources related to each other and are they associated with MICE tourism development? - About applications when studying at Da Lat destination, how external resources of suppliers, organizers, professional organizations, MICE tourists are affecting to MICE destination and which extent does it affect the development of MICE tourism? - What are the managerial implications for tourism businesses so that they can provide the most reasonable and effective resources to both developing tourism and benefiting businesses? 1.3 Object and scope of the research The survey objects in qualitative research are leaders, administrators, business professionals representing organizations related to MICE activities in Da Lat, specialized lecturers in some University The survey objects in quantitative research are 135 domestic and foreign tourism enterprises, providing MICE tourism services, based in Ho Chi Minh City and Southeast provinces A leader, an administrator and one to two sales professionals of each unit will be interviewed by an interviewer 1.4 Research Method Mixed research method includes two phases: qualitative research and preliminary quantitative testing in the first step, quantitative research to test the model in the next step Secondary data is used to determine the selection criteria for Dalat MICE destination 1.5 New contributions of the thesis (1) Modeling a relationship between external stakeholders' resources and MICE destination resources to influence MICE tourism development at a destination Concretizing destination resources research resources, of MICE concepts: MICE tourists, MICE tourism tourism stakeholders MICE development by and business management scales (2) Measuring the impact of external resources, MICE destination resources to affect MICE tourism development 1.7 Thesis structure The thesis consists of five chapters: the first one presents research overview; the second one describes theoretical basis and research model; the third one presents research design; the fourth one performs result findings; the fifth one present conclusion and implifications CHAPTER THEORETICAL BASIS AND RESEARCH MODEL 2.1 The theoretical basis of MICE tourism 2.1.1 MICE concept - MICE tourism MICE is an acronym for Meeting, Incentive, Conference, and Exhibition From different research approaches, the name chosen depends on the type of event studied (Rogers, 2003), and partially depends on geographic location According to Worlds Tourism Organization (2006), the conference industry consists of the main components: (1) Meeting and Conference; (2) exhibitions, and (3) promotions MICE tourism requires a variety of activities at different levels for many stakeholders (Mistilis and Dwyer, 2008), that means activities related to supply-demand components for transporting tourists, places for accomodation, places for sightseeing, shopping and entertainment 2.1.2 Components of MICE tourism * Meeting Meeting is a term that refers to the gathering of some people in one place to exchange or perform a specific activity with different reasons (Getz, 2008) According to Fenich (2005), the most important reason for the meeting is to solve problems and make conclusions * Incentive The Incentive is a travel trip that is fully paid by the organizer (Rogers, 2003) to encourage and reward workers (Fenich, 2005; Rogers, 2003) It can include many elements of a trip such as education, group activity, research, and discovery * Convention, Congress, Conference The conference usually involves a large meeting for general purpose, held every year Therefore, it needs a wellprepared plan with the goal of business and broad social issues Congress is often related to large national and international meetings and the Conference is an event organized by any organization to meet, exchange, give opinions to a question specific topics * Exhibition The exhibition aims to introduce new products, often integrated into the audience by attendees, and it is part of the seminar Fenich (2005) argues that an exhibition is an event where the main activity is the attendee to see the new products on display This event focuses mainly on business orientation, especially to increase new customers 2.1.3 Features of MICE tourism * Three highs: high growth potential, high added values, and highly beneficial innovations * Three larges: large output, large opportunities for employment and large industry associations * Three advantages: more advantage than other industries on the efficient utilization of human resources, technological know-how, and efficient utilization of assets (Janakiraman, 2012) 2.1.4 MICE Tourists - MICE Destination MICE tourists are employees or individuals participating in MICE activities in the country and abroad (Cook, Yale, Marqua, 2006; Swarbrooke and Horner, 2001; Chao, 2010) MICE visitors is one kind of tourists, but tourist motives are somewhat different from ordinary travelers in MICE travelers who aim to focus on seeking knowledge or value or creating habits rather than sightseeing tours MICE destination: According to Getz (2007), a destination can be called a MICE destination when there are seven essential elements: (i) Infrastructure, (ii) Housing, (iii) Transportation, (iv) Attractions, (v) Service, (vi) Retailers, (vii) Places and recreational facilities Chiu and Ananzeh (2012) argue that a MICE destination has 6A: Amenities, Accessibility, Accountability, Affordable, Attractions, and Activities Thus, MICE destination is a geographic region with its own comparative and advantage resources, unique features that make it attractive, deversity in infrastructure and services, high quality, and integrating resources from within and outside the destination to provide high-quality MICE tourism products 2.2 Theory of stakeholders involved in MICE tourism 2.2.1 Concept and theory of stakeholders According to Harrison and Freeman (1999), stakeholders are any group of individuals that may or may be affected by achieving the organization's goals Clarkson (1995) suggests that stakeholders are groups of people or individuals who have the right to complain, to own, other rights or benefit in a company or its activities in the past, at present or future In fact, the focus of this concept should be considered in relation to the events, that means in different events, stakeholders may have changes in participants and roles The role of stakeholders depends on how well the capability of the stakeholder's impacts or meets the needs of the organization (Jawahar & Mclaughlin, 2001) Michell et al, (1997, p.873) states that “Stakeholders will obviously be closely related to the accumulation of the number of stakeholders' characteristics: authority; legitimacy and urgency that managers must be aware of” This theory is described by Venn diagram, consisting of three sets, each representing one of the three characteristics All groups or individuals gain relevant prominence based on the number of features accumulated The higher the number of features, the more prominent the group or individual is Stakeholders only possess one characteristic called latent stakeholders Stakeholders take two characteristics that can called expectant stakeholders and three characteristics that are called highly salient stakeholders The thesis used Michell et al., (1997) theoretical framework as a basis for experts to consider and select stakeholders in terms of authority, legitimacy, and urgency Stakeholder who has all the three characteristics are called highly salient stakeholders and are considered as external resources that impacts the destination 2.2.2 Classification of stakeholders Reid and Arcodia (2002) have divided stakeholders into two types: key stakeholders and secondary stakeholders According to Hardy and Beeton (2001), stakeholders is classified into four general groups: residents, operators, visitors, and managers; Getz et al., (2007) have more specific classification of stakeholders including (i) Equipment supply: 15 resources and MICE destination resource affecting MICE tourism development, and proposed hypotheses: H1: Supplier resources have a positive (+) relationship to MICE destination resources Supplier resources (S) Organization resources (O) Professional organization resources (A) H1 + + H2 MICE destination + H3 resources (D) H5 + MICE tourism development (PT) + H4 MICE tourist resources (T) Figure 2.1 Theoretical model H2: Organization resources have a positive (+) relationship to MICE destination resources H3: Professional organization resources have a positive (+) relationship to MICE destination resources H4: MICE tourist resources have a positive (+) relationship to MICE destination resources H5: MICE destination resources have a positive (+) relationship to MICE tourism development 2.7 Competition model Nguyen Dinh Tho and Nguyen Thi Mai Trang (2008) argue that instead of focusing only on a theoretical model, we need to test it with the competitive model In addition, the 16 method of linear structural analysis allows to study many possible relationships between factors in the model and the same model Therefore, this study proposes three competitive models to compare with the theoretical model to choose the best model Competitive model 1: The relationship between MICE tourist resources and MICE tourism development - MICE tourists are co-creators of value, experience in an event related to interacting with other visitors, service staff, residents (Prebensen et al., 2013) On the consumption side, MICE tourists are the people who promote the development of services and goods to stimulate them for more consumption of different products and services, and as a result, the increasing value for themselves and other stakeholders (Dwyer et al., 2003) Hussain and et al., (2014) found that MICE tourists travel to Malaysia stimulated MICE tourism development From the above discussions, the author proposes a hypothesis: H6: MICE tourists resources have a positive relationship (+) to MICE tourism development Competitive model 2: The relationship between supplier resources and MICE tourism development Research by Haugland et al., (2011), Ramgulam et al., (2012) showed that the resources of suppliers and resources derived from network relationships between destination and service providers are factors affecting MICE tourism development Anitha and Chandrashekara (2018) determine Karnataka's opportunity to develop tourism is to have a variety of products 17 provided by many external suppliers and destination suppliers Therefore, the author proposed hypothesis H7: H7: Supplier resources have a positive relationship (+) to MICE tourism development Competitive model 3: The relationship between supplier resources, MICE tourist resources, and MICE tourism development - From the arguments in the competitive model and 2, the author proposes a competitive model 3, which impact both supplier resources and the resources of MICE visitors on MICE tourism development 18 CHAPTER RESEARCH DESIGN 3.1 Research process Phase one Identify stakeholders Research objectives Experts opinion Research documents Qualitative research Preliminary questionnaire Experts opinion Phase two Preliminary quantitative research N=100 Evaluating reliability EFA analysis Official questionnaire Phase Official quantitative research N=400 Reassign the EFA EFA analysis CFA analysis SEM model Discussion Figure 3.Research process Experts opinion 19 3.2 Research scale The scales used in this thesis are synthesized, inherited from previous studies Specifically, Supplier Resources Scale based on studies of Lai and Vinh (2013), Rittichainuwat and Beck (2001), Chao (2010); Organization Resources Scale was based on studies of Tingting et al., (2007), Simpson (2004), Dwyer et al., (2000), and Whitford (2009); Professional organizational resources Scale based on Angella's research (2007); MICE tourist resources scale based on studies by Saayman and Saayman (2006), Yu and Lee (2014); MICE Destination resources Scale based on studies by Whitfield et al., (2014), and MICE tourism development scale based on studies by Rósbjưrg (2010), Sangpikul and Kim (2009), Đinoví (2010), Ramgulam et al., (2012), Yoon et al., (2001), Chao (2010), Whitford (2009), Sylla et al., (2013) These scales are adjusted by expert method to meet the research conditions 3.3 Preliminary assess the scale 3.3.1 Testing prelimination scale by analysing Cronbach’s Alpha reliability Reliability analysis results show that all of the variables are reliable with Cronbach's Alpha coefficients greater than 0.7; the total correlation of all variables are satisfactory (>0.4) 3.3.2 Testing scale results by exploring factory analysis The results of EFA analysis of external resources, MICE destination resources, and MICE tourism development using the Principal Axis Factoring method with Promax rotation have both factor loading and total variance extracted, the variables are grouped initially, without variable movement 3.4 Methods of data analysis in official research 20 CHAPTER RESEARCH RESULTS AND DISCUSSION 4.1 Official research The quantitative study was officially conducted in the provinces and cities of the Southeast Viet Nam There are 285/400 questionnaires used for analysis and verification 4.2 Results of retesting of the exploratory factor analysis Conduct EFA analysis for external resource factors, resulting in coefficients KMO = 0.853 and Sig = 000; total variance extracted 59,150% The results show that the observed variables are grouped into the initial factors as expected 4.3 Confirmatory factor analysis (CFA) 4.3.1 CFA results from external resources scale At the second CFA analysis, the results showed that the model had 51 degrees of freedom, Chi-square = 172,775 (p = 0,000); CMIN / df = 1,529 is smaller than Other indicators show that the model is suitable for market data, namely: GFI, CFI, TLI are 0.937; 0.960; and 0.952 and RSMEA = 0.043 less than 0.06 This measurement model is consistent with market data, achieving unidirectionality, discriminating values and convergence values 4.3.2 CFA results from unidirectional scales Conducting CFA analysis, the model has 52 degrees of freedom, Chi-square = 111.951 (P = 0,000), CMIN / df = 2,153 is smaller than The GFI, CFI and TLI indicators are 0,935; 0.957; 0.945 (> 0.9), and RSMEA = 0.064; It can be seen that the model responds to market data, achieving uni-directional, discriminatory, convergent values achieving unidirectionality, discriminating values and convergence values 21 4.3.3 CFA results of the saturate model Figure 4.1 CFA results of the saturate model (Source: Results from data collection) The CFA result of the saturate model (Figure 4.1) has Chisquare = 435.957 with P = 0,000; GFI = 0.891; TLI = 0,919; CFI = 0,929; RMSEA = 0.053 less than 0.06 The above indicators confirm that the model fits well with market data As convergence values, standardized regression weights are statistically significant; for discriminal values, the correlation coefficient between concepts is less than and statistically significant CFA results are summarized in Table 4.2 22 Table 4.1 Results of distinction values of saturate Model Correlation r SE CR P value D < > S 0,623 0,045 8,431 0,0000 D < > O 0,571 0,047 9,141 0,0000 S < > O 0,542 0,048 9,533 0,0000 O < > T 0,538 0,048 9,587 0,0000 D < > T 0,553 0,048 9,385 0,0000 S < > T 0,530 0,048 9,695 0,0000 D < > PT 0,402 0,052 11,425 0,0000 S < > PT 0,361 0,053 11,986 0,0000 O < > PT 0,459 0,051 10,652 0,0000 T < > PT 0,449 0,051 10,787 0,0000 (Source: Results from data collection) Table 4.12 the test results all of the scale of the model Co de Numb er of varia bles S O MICE traveler resource Scale Reliability ρvc λ 4 α 0,838 0,717 ρc 0,851 0,724 0,593 0,397 0,763 0,629 T 0,771 0,776 0,604 0,777 MICE destination D 0,828 0,837 0,426 0,649 MICE tourism development PT 0,880 0,88 0,595 0,771 Supplier resource Organizer resource (Source: Results from data collection) 4.4 Testing of research models 4.4.1 Testing of the official theory model The model has 245 degrees of freedom, Chi-square = 459.198 (p = 0.000), Chi-square / df = 1,874 is smaller than 2; GFI = 0.886; TLI = 0,912; CFI = 0.922, and RMSEA = 0.055 less than 0.06 This indicates that the model fits the market data Val ues Fit 23 (Source: Results from data collection) Figure 4.2 SEM results of the theoretical model (Standardized) Table 4.3 Standardized regression coefficients of the theoretical model Correlation Estimate S.E C.R P-value S → D 0,364 0,053 11,984 0,0000 O → D 0,268 0,055 13,334 0,0000 T → D 0,234 0,055 13,827 0,0000 D → PT 0,442 0,051 10,917 0,0000 (Source: Results from data collection) 4.4.2 Testing of the competitive model To assess the test result objectively, the thesis stated the bases for proposing to test competitive models to select the best competitive model to compare with the proposed theoretical model As a result, in the three competing models, 24 model competitive has more optimal indicators than the other two Table 4.4 Compare the differences between models Model Chisquare Df P LT CT1 CT2 CT3 459,198 443,380 455,043 442,509 245 244 244 243 0,00 0,00 0,00 0,00 Chisquare /df 1,874 1,817 1,865 1,821 GFI CFI TLI RMSEA 0,886 0,889 0,886 0,889 0,922 0,927 0,923 0,927 0,912 0,918 0,913 0,917 0,055 0,054 0,055 0,054 (Source: Results from data collection) The competition model selected takes degree of freedom, but the values of GFI, CLI, TLI in the competitive model are higher and more significant than the theoretical model Thus, competitive model is more appropriate and comprehensive than others to explain market data At this point, the official model selected is the model in Figure 4.3 Supplier resources (S) + Organization resources (O) MICE tourist resources (T) H2 + H3 H1 + MICE destination H4 + resources (D) MICE tourism development (PT) H5 + Figure 4.3 Official theoretical model after testing 4.4.3 Boostrap testing This study uses the bootstrap method with a repetition of N = 1.000 The estimation results show that the bias appears but 25 is very small and stable, indicating that the estimates in the research model are reliable 4.5 Testing research hypotheses Estimates of the official theory model and bootstrap in SEM analysis show that the relationships hypothesized in the theoretical model are statistically significant The hypotheses H1, H2, H3, H4, H5 are accepted * The effectiveness of the impact: From the analysis in Table 4.5, we saw that the direct impact is 0.563 and indirect is 0.18923, the impacting of the variables in the model were 75.223% to the MICE tourism development Table 4.5 Effectiveness directly, indirectly and synthesizes between all concepts in the research model MICE tourism MICE Impact development destination mode indirectly directly resources directly indirectly Synthesizes directly Organization indirectly resources Synthesizes Supplier resources 0,373 0,373 0,259 0,259 0,083925 0,083925 0,058275 0,058275 MICE tourist resources directly indirectly 0,209 0,343 0,047025 Synthesizes 0,209 0,047025 MICE destination resources directly indirectly Synthesizes 0,220 0,18923 Synthesizes 0,563 0,75223 26 CHAPTER CONCLUSIONS AND MANAGERIAL IMPLIFICATIONS 5.1 Conclusion The thesis has achieved three objectives: (1) Building a model of the relationship between external resources of suppliers, organizers, MICE tourists; MICE destination resources, and MICE tourism Development at MICE Dalat destination; (2) Testing the compatibility between theoretical models and market data when studying at MICE Dalat destination; and (3) Proposing governance implications for stakeholders providing resources, combined with MICE destination resources to create MICE tourism development * Contributing to the measurement model: Scale of external resources, MICE destination resources and the development of MICE tourism are reliable, convergent and good value, suitable for use in the MICE tourism industry in Dalat The study also builds and tests the scale of resources of MICE tourists to contribute to MICE tourism development * Contributing to the theoretical model: (i) contributing to concretizing MICE destination, MICE destination resources concepts towards resource research, that is the result of aggregating the internal resources of the destination and the contribution of external resources from suppliers, organizers and MICE tourists, represented by positive relationships in the official model and proven evidence; (ii) Concretizing the concept of MICE tourism development In other words, the thesis has built a scale and measured the development of MICE 27 tourism in the direction of business management according to the proposed and tested models 5.2 Managerial implifications 5.2.1 Relating to the supplier resources From the relationship between supplier resources and MICE destinations and MICE tourism development, there is a need to have appropriate policies and strategies to attract this resource 5.2.2 Relating to the organizer resources Policies need to be taken to facilitate the event at the destination, flexible coordination between the organizer and the local government in all aspects, to facilitate the organization 5.2.3 Relating to the MICE Tourist resources Destinations need to build an attracting image and must ensure the service quality provided to travelers as their needs or higher than their overall desirability 5.2.4 Relating to the destination It is necessary to continuously improve the quality of tourist facilities such as food and hotels, convention center; strongly develop high-quality product packages 5.2.5 Relating to MICE tourism development For MICE tourism to better grow, suppliers, organizers, and MICE destinations need to increase the level of response in adequate and timely manner: both tangible and intangible resources, both relationship resources and knowledge in order to meet the needs of MICE travelers MICE destinations and stakeholders get benefits, which will contribute to MICE tourism development 28 5.3 Limitation of the research and further research 5.3.1 Limitation of the research Research faces to the following specific limitations: First, the study was conducted in the context of both Vietnam and foreign countries that did not have a representative model for the development of MICE tourism Therefore, the proposed model may lack of some other important factors Second, the study only verified the MICE activities provided from the South East provinces to Dalat destination The reality shows that with different destinations, the resources will be different of scale and quantification Therefore, it is necessary to expand the scope of research in other provinces and cities throughout the country, especially in large cities Third, the author's research approach is mainly from the supply side For a better understanding of MICE tourism, research from the demand direction, or from both directions of supplydemand is essential Fourth, the result of the CFA saturated model has 2/5 variance extracted