Effects of national cultures on the development of digital business models in the travel industry

Abstract

Nowadays, tourism as one of the leaders in digitalization undergoes fundamental changes caused by wide technology adoptions. The current trend of digitalization is increasingly important for tourism as for the information-based industry. Travel companies have to create new business models (BMs) to respond rapidly to the new landscape. Digital BMs replace traditional ones and become a significant part of the travel ecosystem. Business reports show that the development of digital BMs in the travel industry is uneven across countries and regions. Previous literature confirmed that technology adoption and approach to innovations are linked to national cultures. At the same time, some researchers state that globalization and adoptions of digital technologies blur borders between countries and therefore national cultures lose their influence on companies. This study aims to clarify the role of national culture in the development of digital BMs. The study addresses the research gap existing on the intersection of three research field: digitalization, BMs, and national cultures. Based on qualitative research, the study identifies present digital BMs in the travel industry and clarify the influence of national cultures on their development. Findings show that the travel industry faces the growth of the great variety of digital BMs: the study has revealed 53 digital BM configurations. Moreover, results confirm that national cultures maintain their impact on the digital travel business. Findings show that the impactful aspects of national cultures include various cultural dimensions linked to the system of values (such as Universalism vs. Particularism and Long-term vs Short-term Orientation) as well as societal institutions (e.g. payment systems, banking institutions). The study results in a systematic and comprehensive typology of digital BM configurations in the travel industry which integrates the travel industry in the general stream of BM research. Moreover, the theoretical contribution comes from the exploration of new BM configurations and new cultural dimensions. Summarizing the revealed relationships, the study offers the model of the impact of national cultures on the development of digital BMs. For practitioners, the understanding of cultural aspects which support or inhibit the development of digital BMs help in the selection of an appropriate location for a business opening. Also, consideration of the effects of national cultures could minimize fears and risks associated with BM adoption across countries.