Human Resource Practices in SMEs And Their Role in Peri-Urban Tourism Growth: A Case Study of Culinary Tourism, Indonesia

Fajar Saranani

Abstract


This study examines the strategic role of small and medium enterprises (SMEs) in driving peri-urban tourism growth through the lens of human resource practices (HRP). Focusing on the culinary tourism sector in Kolaka City, Southeast Sulawesi, the research responds to substantial growth in tourist visits by analyzing how organizational capabilities shape destination performance. Using a quantitative design, data were collected from 247 SMEs through a structured questionnaire and analyzed using SEM-PLS. The results show that HRP strongly influence Employee Hospitality (EH), and that frontline service behavior serves as the primary mechanism linking HRP to Tourism Growth (TG). Mediation analysis confirms an indirect-only pattern, indicating that HR practices enhance tourism outcomes only when they successfully elevate hospitality behaviors and customer experience. The findings highlight that peri-urban tourism competitiveness depends not only on physical or promotional assets but also on the behavioral and organizational capacities of SMEs—especially structured HR systems, consistent service routines, and supportive managerial climates. Theoretically, this study extends HRM and organizational behavior perspectives into tourism research by demonstrating how micro-level HR strategies translate into macro-level tourism performance through behavioral mediation. Practically, the results offer a foundation for policy and capacity-building programs centered on service-oriented recruitment, modular hospitality training, performance feedback, and SME empowerment to strengthen sustainable peri-urban tourism development.

Keywords: workforce development, organizational behavior, frontline service behavior, employee hospitality, service-based competitiveness, destination experience, tourism sustainability strategy

© 2026 Serbian Geographical Society, Belgrade, Serbia.

This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution-NonCommercial-NoDerivs 3.0 Serbia.


Full Text:

PDF

References


Appelbaum, E., Bailey, T., Berg, P., & Kalleberg, A. L. (2000). Manufacturing advantage: Why high-performance work systems pay off. Cornell University Press.

Bakker, A. B., & Demerouti, E. (2007). The job demands–resources model: State of the art. Journal of Managerial Psychology, 22(3), 309–328. https://doi.org/10.1108/02683940710733115

Barna, M., Melnyk, I., Topornytska, M., Turchyniak, M., & Reshetylo, L. (2024). Financial and HR management of tourism enterprises. Financial and Credit Activity: Problems of Theory and Practice, 6(59), 633–647. https://doi.org/10.55643/fcaptp.6.59.2024.4648

Boediman, A., Susanto, E., Afgani, K. F., & Rahadi, A. A. (2024). Financial management behavior of micro-businesses in tourism destinations: A qualitative study. Journal of Tourism Hospitality and Travel Management, 2(1), 1–13. http://dx.doi.org/10.58229/jthtm.v2i1.300

Central Statistics Agency of Southeast Sulawesi Province. (2024). Number of domestic tourist trips by regency/city of origin (Trips), 2020. Central Statistics Agency of Southeast Sulawesi Province. https://sultra.bps.go.id/id/statistics-table/2/NjE5IzI=/jumlah-perjalanan-wisatawan-nusantara-menurut-kabupaten-kota-asal.html

Diéguez-Soto, J., Martínez-Romero, M. J., Corten, M., & Michiels, A. (2022). The impact of the CEO's financial literacy on family SMEs' growth: The moderating role of generational stage. Baltic Journal of Management, 17(1), 89–106. https://doi.org/10.1108/BJM-01-2021-0003

Dwiputri, R. M., Suyono, E., Laksana, R. D., & Febriyanto. (2023). Financial literacy, risk aversion, financial performance, and innovative behavior in Indonesian SMEs. The Journal of Behavioral Science, 18(2), 15–31.

Gössling, S., & Hall, C. M. (Eds.). (2013). Sustainable culinary systems: Local foods, innovation, and tourism & hospitality. Routledge.

Greenberg, J., & Baron, R. A. (2008). Behavior in organizations (9th ed.). Pearson Prentice Hall.

Guenther, P., Guenther, M., Ringle, C. M., Zaefarian, G., & Cartwright, S. (2023). Improving PLS-SEM use for business marketing research. Industrial Marketing Management, 111, 127–142. https://doi.org/10.1016/j.indmarman.2023.03.010

Günaydın, Y. (2022). Service quality in hospitality businesses and its effect on revisit intention during the COVID-19. Journal of Tourism Theory and Research, 8(2), 37–46. https://doi.org/10.24288/jttr.1066010

Hair Jr., J. F., Hult, G. T. M., Ringle, C. M., Sarstedt, M., Danks, N. P., & Ray, S. (2021). Evaluation of reflective measurement models. In Partial least squares structural equation modeling (PLS-SEM) using R (pp. 75–90). Springer. https://doi.org/10.1007/978-3-030-80519-7_4

Hair Jr., J. F., Sarstedt, M., Hopkins, L., & Kuppelwieser, V. G. (2014). Partial least squares structural equation modeling (PLS-SEM): An emerging tool in business research. European Business Review, 26(2), 106–121. https://doi.org/10.1108/EBR-10-2013-0128

Hair, J. F., Risher, J. J., Sarstedt, M., & Ringle, C. M. (2019). When to use and how to report the results of PLS-SEM. European Business Review, 31, 2–24. https://doi.org/10.1108/EBR-11-2018-0203

Hajarrahmah, D., & Daniels-Llanos, M. (2017). Developing culinary tourism to support local tourism development and preserving food heritage in Indonesia. In C. Silver, L. Marques, H. Hanan, & I. Widiastuti (Eds.), Proceedings of the 6th International Conference of Arte-Polis (pp. 21–30). Springer, Singapore. https://doi.org/10.1007/978-981-10-5481-5_3

Hasddin, H. (2021). The influence empowerment and organizational commitment to the performance of management of marine tourism (study on marine tourism in Toronipa Beach, Southeast Sulawesi, Indonesia). International Journal of Management and Education in Human Development, 1(01), 24–30.

Henseler, J., Ringle, C. M., & Sarstedt, M. (2015). A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the Academy of Marketing Science, 43, 115–135. https://doi.org/10.1007/s11747-014-0403-8

Jiang, K., Lepak, D. P., Hu, J., & Baer, J. C. (2012). How does human resource management influence organizational outcomes? A meta-analytic investigation of mediating mechanisms. Academy of Management Journal, 55(6), 1264–1294. https://doi.org/10.5465/amj.2011.0088

Kehoe, R. R., & Wright, P. M. (2013). The impact of high-performance human resource practices on employees’ attitudes and behaviors. Journal of Management, 39(2), 366–391. https://doi.org/10.1177/0149206310365901

Levyda, L., Giyatmi, G., Ratnasari, K., & Valeriani, D. (2024). Embracing culinary tourism as a strategy for boosting regional development: Bangka Belitung case studies. Integrated Journal of Business and Economics, 8(3), 332–346. https://doi.org/10.33019/ijbe.v8i3.888

Liao, H., & Chuang, A. (2007). Transforming service employees and climate: A multi-level, multisource examination of transformational leadership in building long-term service relationships. Journal of Applied Psychology, 92(4), 1006–1019. https://doi.org/10.1037/0021-9010.92.4.1006

Madera, J. M., Dawson, M., & Neal, J. A. (2017a). Managers’ psychological diversity climate and fairness: The utility and importance of diversity management in the hospitality industry. Journal of Human Resources in Hospitality & Tourism, 16(3), 288–307. https://doi.org/10.1080/15332845.2017.1253442

Madera, J. M., Dawson, M., Guchait, P., & Belarmino, A. M. (2017b). Strategic human resources management research in hospitality and tourism: A review of current literature and suggestions for the future. International Journal of Contemporary Hospitality Management, 29(1), 48–67. https://doi.org/10.1108/IJCHM-02-2016-0051

Maosul, A., Barliana, M. S., Ana, A., Karpin, K., Suwandi, A., & Lestari, N. (2025). Gastrodiplomacy and culinary tourism: A systematic literature review on small and medium enterprise skills development in the tourism industry. Mimbar Pendidikan, 10(3), 250–266. https://doi.org/10.17509/mimbardik.v10i3.88028

Ministry of Tourism and Creative Economy, Republic of Indonesia. (2023). Developing gastronomic tourism in Ubud, Bali – Indonesia: 8th UNWTO World Forum on Gastronomy Tourism. UNWTO. https://pre-webunwto.s3.eu-west-1.amazonaws.com/s3fs-public/2023-10/Development%20of%20Gastronomy%20Tourism%20in%20Ubud%2C%20Bali-Indonesia.pdf

Papademetriou, C., Anastasiadou, S., & Papalexandris, S. (2023). The effect of sustainable human resource management practices on customer satisfaction, service quality, and institutional performance in hotel businesses. Sustainability, 15(10), Article 8251. https://doi.org/10.3390/su15108251

Pradoto, W., Setiyono, B., Wahyono, H., & Choi, M. J. (2024). Peri-urbanisation in Surakarta City and economic transformation in the fast-growing region of Sukoharjo Regency. Forum Geografi, 38(2), 203–221. https://doi.org/10.23917/forgeo.v38i2.5497

Rabiul, M. K., Mohamed, A. E., Patwary, A. K., Yean, T. F., & Osman, S. Z. (2023). Linking human resources practices to employee engagement in the hospitality industry: The mediating influences of psychological safety, availability and meaningfulness. European Journal of Management and Business Economics, 32(2), 223–240. https://doi.org/10.1108/EJMBE-12-2020-0347

Riswandi, D. I. (2024). Food tourism: The role of local special food in increasing and developing tourism in Indonesia. Jurnal Ilmiah Edunomika, 8(2), 1–7. https://doi.org/10.29040/jie.v8i2.13210

Sarstedt, M., Ringle, C. M., Smith, D., & Reams, R. (2014). Partial least squares structural equation modeling (PLS-SEM): A useful tool for family business researchers. Journal of Family Business Strategy, 5(1), 105–115. http://dx.doi.org/10.1016/j.jfbs.2014.01.002

Sathyanarayana, S., & Mohanasundaram, T. (2025). Mediation analysis in structural equation modeling (SEM): Theoretical foundations, statistical methods and practical implications. Asian Journal of Economics, Business and Accounting, 25(3), 19–37. https://doi.org/10.9734/ajeba/2025/v25i31692

Satriani, N., Utami, H. N., & Prasetya, A. (2022). Analysis of human resources readiness strategies for small and medium enterprises in tourism development to face the new normal era of the Covid-19 pandemic. JPPI (Jurnal Penelitian Pendidikan Indonesia), 8(4), 1292–1303. https://doi.org/10.29210/020221993

Schuler, M. S., Coffman, D. L., Stuart, E. A., Nguyen, T. Q., Vegetabile, B., & McCaffrey, D. F. (2025). Practical challenges in mediation analysis: A guide for applied researchers. Health Services and Outcomes Research Methodology, 25(1), 57–84. https://doi.org/10.1007/s10742-024-00327-4

Selvi, S., Pakaya, A. R., & Nahar, F. H. (2024). Management behavior: The role of financial literacy and financial knowledge of MSME actors. Jurnal Aplikasi Manajemen, 22(3), 909–919. https://doi.org/10.21776/ub.jam.2024.022.03.20

Su, L., & Swanson, S. R. (2017). The effect of destination social responsibility on tourist environmentally responsible behavior: Compared analysis of first-time and repeat tourists. Tourism Management, 60, 308–321. https://doi.org/10.1016/j.tourman.2016.12.011

Sumastuti, E., Amelia, D. R., & Indriasari, I. (2024). Are business savings a mediator for culinary tourism development? Economics Development Analysis Journal, 13(2), 247–258. https://doi.org/10.15294/edaj.v13i2.78980

Taber, K. S. (2018). The use of Cronbach’s alpha when developing and reporting research instruments in science education. Research in Science Education, 48, 1273–1296. https://doi.org/10.1007/s11165-016-9602-2

UNWTO & Basque Culinary Center. (2019). Guidelines for the development of gastronomy tourism. UNWTO. https://www.untourism.int/global/publication/guidelines-development-gastronomy-tourism

UNWTO. (2023). UNWTO completes gastronomy tourism project for Ubud, Indonesia. https://www.untourism.int/news/unwto-completes-gastronomy-tourism-project-for-ubud-indonesia

Utama, Z. M., & Marwan, J. (2022). Professional human resources to create consumer satisfaction and the impact on purchasing intention. International Journal of Human Capital Management, 6(2), 1–19. https://doi.org/10.21009/IJHCM.06.02.1

Vinh, N. V. (2024). Training and developing human resources for hotels in the context of the hotel and restaurant tourism service ecosystem. International Journal of Management and Organizational Research, 3(2), 18–26.

Wahyuningrat, W., & Harsanto, B. T. (2025). Managing human resource in the rural tourism sector: Evidence from Indonesia. Cogent Business & Management, 12(1), Article 2493312. https://doi.org/10.1080/23311975.2025.2493312

Walker, D. A. (2017). JMASM 48: The Pearson product-moment correlation coefficient and adjustment indices: The Fisher approximate unbiased estimator and the Olkin-Pratt adjustment (SPSS). Journal of Modern Applied Statistical Methods, 16(2), 540–546. https://doi.org/10.56801/v16.i.955

Wardhana, Z. F., Sudiari, M., & Sengkey, F. (2024). The strategic role of human resource management in the tourism industry. Jurnal Manajemen Pelayanan Hotel, 8(2), 394–410. https://doi.org/10.37484/jmph.080224

Wolf, E. (2024). State of the Industry: Food & Beverage Tourism 2024 (SOTI report). World Food Travel Association. https://www.worldfoodtravel.org/annual-industry-report

World Tourism Organization. (2023). UNWTO World Tourism Barometer – November 2023. UNWTO. https://www.unwto.org/un-tourism-news-international-tourism-to-end-2023-close-to-90-of-pre-pandemic

World Travel & Tourism Council. (2024a). Travel & tourism set to break all records in 2024. WTTC. https://wttc.org/news/travel-tourism-set-to-break-all-records-in-2024

World Travel & Tourism Council. (2024b). Travel & tourism economic impact 2024: Global trends. WTTC. https://researchhub.wttc.org/product/economic-impact-report-global-trends

Yeboah, R., & Ashie, D. (2024). Promotion of local food as tourism product in the Cape Coast Metropolis: An explorative research. Heliyon, 10(24), Article e40950. https://doi.org/10.1016/j.heliyon.2024.e40950

Yoo, J., & Arnold, T. (2016). Frontline employee customer-oriented attitude in the presence of job demands and resources: Influence upon deep and surface acting. Journal of Service Research, 19(1), 102–117. https://doi.org/10.1177/1094670515589956

Zhao, X., Lynch, J. G., & Chen, Q. (2010). Reconsidering Baron and Kenny: Myths and truths about mediation analysis. Journal of Consumer Research, 37(2), 197–206. https://doi.org/10.1086/651257

Zhu, D., Doan, T., Kanjanakan, P., & Kim, P. B. (2022). The impact of emotional intelligence on hospitality employees’ work outcomes: A systematic and meta-analytical review. Journal of Hospitality Marketing & Management, 31(3), 1–22. https://doi.org/10.1080/19368623.2021.1978914


Refbacks

  • There are currently no refbacks.