Strategic Business Sustainability: A Comprehensive Risk Management Examination of SME Participation in Maritime Events Pinisi Festival

  • Surya Dewi Makassar Tourism Polytechnic
  • Syafruddin Syafruddin Makassar Tourism Polytechnic
Keywords: Pinisi Festival, Risk Management, Sustainability, Cultural Heritage, Tourism Industry

Abstract

The Pinisi Festival in Bulukumba, Indonesia, showcases the cultural heritage of the Kajang community and offers a platform for Micro, Small, and Medium Enterprises (MSMEs) to participate and benefit from the tourism sector. This study examines the role of effective risk management in enhancing the sustainability of MSME participation in the festival. Using a qualitative descriptive approach, data were collected through in-depth interviews, observation, and document analysis. Findings reveal that MSMEs demonstrate a good understanding of risk management, identifying key risks such as damage to goods, a decrease in visitor numbers, and adverse weather conditions. To mitigate these risks, MSMEs employ strategies such as maintaining backup stock, intensifying marketing efforts, and investing in weather-resistant infrastructure. The application of effective risk management not only helps MSMEs address challenges during the festival but also enhances their competitiveness in the market. Furthermore, government support and collaboration with private entities play a crucial role in overcoming challenges and ensuring the success of the festival. This study contributes to the understanding of risk management practices in MSMEs and highlights the importance of collaboration in promoting sustainable tourism development.

References

Arslan, I. K. (2020). The importance of creating customer loyalty in achieving sustainable competitive advantage. Eurasian Journal of Business and Management, 8(1), 11-20. https://doi.org/10.15604/ejbm.2020.08.01.002

Bladen, C., Kennell, J., Abson, E., & Wilde, N. (2022). Events management: An introduction. Routledge. https://doi.org/10.4324/9780203852972

Cerveny, L. K., Miller, A., & Gende, S. (2020). Sustainable cruise tourism in marine world heritage sites. Sustainability, 12(2), 611. https://doi.org/10.3390/su12020611

Dassir, M. (2022). “Pasang”, Knowledge and Implementation of Local Wisdom in The Kajang Traditional Forest Area, South Sulawesi. Pusaka: Journal of Tourism, Hospitality, Travel and Business Event, 4(1), 40-47. https://doi.org/10.33649/pusaka.v4i1.151

Dewi, S., & Syafruddin, S. (2024). Strategic Business Sustainability: A Comprehensive Risk Management Examination of SME Participation in Maritime Events Pinisi Festival. Journal La Bisecoman, 5(4), 429-438. https://doi.org/10.37899/journallabisecoman.v5i4.1388

Dimitrovski, D., Lemmetyinen, A., Nieminen, L., & Pohjola, T. (2021). Understanding coastal and marine tourism sustainability-A multi-stakeholder analysis. Journal of Destination Marketing & Management, 19, 100554. https://doi.org/10.1016/j.jdmm.2021.100554

Fraccastoro, S., Gabrielsson, M., & Pullins, E. B. (2021). The integrated use of social media, digital, and traditional communication tools in the B2B sales process of international SMEs. International business review, 30(4), 101776. https://doi.org/10.1016/j.ibusrev.2020.101776

Giotis, G., & Papadionysiou, E. (2022). The role of managerial and technological innovations in the tourism industry: a review of the empirical literature. Sustainability, 14(9), 5182. https://doi.org/10.3390/su14095182

Gonda, T., Angler, K., & Csóka, L. (2021). The role of local products in tourism. European countryside, 13(1), 91-107. https://doi.org/10.2478/euco-2021-0006

Goulding, T. C., & Dayrat, B. (2023). The Coral Triangle and Strait of Malacca are two distinct hotspots of mangrove biodiversity. Scientific reports, 13(1), 15793.

Hall, C. M. (2013). Development (s) in the geographies of tourism: Knowledge (s), actions and cultures. In Geographies of Tourism (pp. 11-34). Emerald Group Publishing Limited. . https://doi.org/10.1108/S1571-5043(2013)0000019002

Herman, H. (2018). The influence of market orientation and product innovation on the competitive advantage and its implication toward Small and Medium Enterprises (UKM) performance. International Journal of Science and Engineering Invention, 4(8), 8-21. https://doi.org/10.23958/ijsei/vol04-i08/02

Herzallah, A. M., Gutiérrez-Gutiérrez, L., & Munoz Rosas, J. F. (2014). Total quality management practices, competitive strategies and financial performance: the case of the Palestinian industrial SMEs. Total Quality Management & Business Excellence, 25(5-6), 635-649. https://doi.org/10.1080/14783363.2013.824714

Intason, M., Lee, C., & Coetzee, W. (2021). Examining the interplay between a hallmark cultural event, tourism, and commercial activities: A case study of the Songkran Festival. Journal of Hospitality and Tourism Management, 49, 508-518. https://doi.org/10.1016/j.jhtm.2021.11.007

Jarvis, D., Stoeckl, N., & Liu, H. B. (2016). The impact of economic, social and environmental factors on trip satisfaction and the likelihood of visitors returning. Tourism Management, 52, 1-18. https://doi.org/10.1016/j.tourman.2015.06.003

Kharouf, H., Biscaia, R., Garcia-Perez, A., & Hickman, E. (2020). Understanding online event experience: The importance of communication, engagement and interaction. Journal of Business Research, 121, 735-746. https://doi.org/10.1016/j.jbusres.2019.12.037

Knollenberg, W., Arroyo, C. G., Barbieri, C., & Boys, K. (2021). Craft beverage tourism development: The contributions of social capital. Journal of Destination Marketing & Management, 20, 100599. https://doi.org/10.1016/j.jdmm.2021.100599

Lesmana, H., Sugiarto, S., Yosevina, C., & Widjojo, H. (2022). A Competitive Advantage Model for Indonesia’s Sustainable Tourism Destinations from Supply and Demand Side Perspectives. Sustainability, 14(24), 16398. https://doi.org/10.3390/su142416398

Liao, L., & Huang, T. (2021). The effect of different social media marketing channels and events on movie box office: An elaboration likelihood model perspective. Information & Management, 58(7), 103481. https://doi.org/10.1016/j.im.2021.103481

Liat, C. B., Mansori, S., & Huei, C. T. (2014). The associations between service quality, corporate image, customer satisfaction, and loyalty: Evidence from the Malaysian hotel industry. Journal of hospitality marketing & management, 23(3), 314-326. https://doi.org/10.1080/19368623.2013.796867

Mair, J., & Duffy, M. (2020). The Role of festival networks in regional community building. Located Research: Regional places, transitions and challenges, 89-116. https://doi.org/10.1007/978-981-32-9694-7_7

Mangubhai, S., Erdmann, M. V., Wilson, J. R., Huffard, C. L., Ballamu, F., Hidayat, N. I., ... & Wen, W. (2012). Papuan Bird’s Head Seascape: Emerging threats and challenges in the global center of marine biodiversity. Marine pollution bulletin, 64(11), 2279-2295. https://doi.org/10.1016/j.marpolbul.2012.07.024

Niyi Anifowose, O., Ghasemi, M., & Olaleye, B. R. (2022). Total quality management and small and medium-sized enterprises’(SMEs) performance: Mediating role of innovation speed. Sustainability, 14(14), 8719. https://doi.org/10.3390/su14148719

Riska, R., Ramadani, F., & Purwasih, R. (2020). Analisis Pengembangan Wisata Bahari Pantai Apparalang di Bulukumba. Riset Sains dan Teknologi Kelautan, 87-91. https://doi.org/10.62012/sensistek.v3i1.13247

Ritchie, J. B., & Crouch, G. I. (2003). The competitive destination: A sustainable tourism perspective. Cabi. http://dx.doi.org/10.1079/9780851996646.0000

Rizun, N., Revina, A., & Meister, V. G. (2021). Analyzing content of tasks in Business Process Management. Blending task execution and organization perspectives. Computers in Industry, 130, 103463. https://doi.org/10.1016/j.compind.2021.103463

Satti, Z. W., Babar, S. F., Parveen, S., Abrar, K., & Shabbir, A. (2020). Innovations for potential entrepreneurs in service quality and customer loyalty in the hospitality industry. Asia pacific journal of innovation and entrepreneurship, 14(3), 317-328. https://doi.org/10.1108/APJIE-08-2019-0063

Sirkis, G., Regalado-Pezúa, O., Carvache-Franco, O., & Carvache-Franco, W. (2022). The determining factors of attractiveness in urban tourism: A study in Mexico City, Buenos Aires, Bogota, and Lima. Sustainability, 14(11), 6900. https://doi.org/10.3390/su14116900

Son, I. S., Huang, S. S., & Padovan, D. (2021). Realising the goals of event leveraging: The tourism and hospitality SME perspective. Journal of Hospitality and Tourism Management, 49, 253-259. https://doi.org/10.1016/j.jhtm.2021.09.018

Song, H., Dwyer, L., Li, G., & Cao, Z. (2012). Tourism Economics Research: A Review and Assessment. Annals of Tourism Research, 39(3), 1653-1682. https://doi.org/10.1016/j.annals.2012.05.023

Sormin, A., & Sihombing, H. (2023). Empowering Youth for Sustainable Cultural Tourism: A Case Study Tipang Village, Baktiraja District, Humbang Hasundutan Regency, Indonesia. Jurnal Ilmu Pendidikan dan Humaniora, 12(1), 56-68. https://doi.org/10.35335/jiph.v12i1.31

Stalmirska, A. M. (2024). Local food in tourism destination development: The supply-side perspectives. Tourism Planning & Development, 21(2), 160-177. https://doi.org/10.1080/21568316.2021.1928739

Supriyanto, E. E. (2022). Blue tourism: Treating marine ecosystems and increasing the potential of maritime tourism in Indonesia. Jurnal Kepariwisataan Indonesia: Jurnal Penelitian dan Pengembangan Kepariwisataan Indonesia, 16(2), 138-148. https://doi.org/10.47608/jki.v16i22022.138-148

Tagarev, T., & Ratchev, V. (2020). A taxonomy of crisis management functions. Sustainability, 12(12), 5147. https://doi.org/10.3390/su12125147

Tang, C. F., & Lau, E. (2021). Exploring the impact of political stability and climate change on inbound tourism demand: evidence from dynamic panel data analysis. Regional science perspectives on tourism and hospitality, 403-419. https://doi.org/10.1007/978-3-030-61274-0_20

Van Winkle, C. M., Sánchez-Aguirre, D., & Liu-Lastres, B. (2023). Navigating uncertainty: exploring festival and community events’ crisis management in three North American countries. Tourism Recreation Research, 1-18. https://doi.org/10.1080/02508281.2023.2243769

Wang, L., Zhou, X., Lu, M., & Cui, Z. (2020). Impacts of haze weather on tourist arrivals and destination preference: Analysis based on Baidu Index of 73 scenic spots in Beijing, China. Journal of Cleaner Production, 273, 122887. https://doi.org/10.1016/j.jclepro.2020.122887

Williams, J., & Chinn, S. J. (2010). Meeting relationship-marketing goals through social media: A conceptual model for sport marketers. International Journal of Sport Communication, 3(4), 422-437. https://doi.org/10.1123/ijsc.3.4.422

Wondirad, A., Kebete, Y., & Li, Y. (2021). Culinary tourism as a driver of regional economic development and socio-cultural revitalization: Evidence from Amhara National Regional State, Ethiopia. Journal of Destination Marketing & Management, 19, 100482. https://doi.org/10.1016/j.jdmm.2020.100482

Zulkifli, A. A. (2023). Optimizing the Cleanliness Management of Coastal Lodgings and Homestays. Journal La Bisecoman, 4(1), 9-16. https://doi.org/10.37899/journallabisecoman.v4i1.862

Published
2024-06-23
How to Cite
Dewi, S., & Syafruddin, S. (2024). Strategic Business Sustainability: A Comprehensive Risk Management Examination of SME Participation in Maritime Events Pinisi Festival. Journal La Bisecoman, 5(4), 429-442. https://doi.org/10.37899/journallabisecoman.v5i4.1388