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Enhancing SMTEs Business performance
through the Internet and eLearning Platforms
Catherine Collins, Dimitrios Buhalis, and Mike Peters
Catherine Collins and Dimitrios Buhalis
Centre for eTourism Research (CeTR)
School of Management, University of Surrey, Guildford, GU2 7XH, UK
Tel: +44 1483 686332 Fax:+44 1483 686346
Email: D.Buhalis@surrey.ac.uk, Email: c.collins@surrey.ac.uk
Mike Peters
Zentrum für Tourismus und Dienstleistungswirtschaft
Universität Innsbruck, Universitätsstrasse 15, A-6020 Innsbruck
Tel. 0043-512-5077086 Fax. 0043-512-5072845
Email: mike.peters@uibk.ac.at
Acknowledgements
The authors would like to thank the SMART-UP team for their contribution to this
paper and to the project in general and in particular Josef Withalm and Andrea
Konvicka (Siemens), Christopher Kronenberg, Klaus Weiermair (University of
Innsbruck), Colin.O'Connor and Elizabeth Kennedy (Dublin Institute of Technology),
Andreas Liebrich (University of Saint Gallens) and Francesco Bertotti (Galileo).
ABSTRACT
Online learning (eLearning) systems can help to deliver ICT training to Small and
medium-sized tourist enterprises (SMTEs). SMTEs need to maintain and understand
the importance of utilising new information technologies dynamically and to
incorporate training and education into their overall strategy via online learning. They
need to be innovative and adopt systems that will allow them to explore their
potential.
This paper investigates SMTEs in the European Hotel sector and their utilisation of
the Internet and their perception on online learning systems. The paper also aims to
demonstrate to SMTEs that training is imperative and that ICTs can enable them to
improve their inventory management, strengthen their marketing and
communications strategies and develop their internal business processes. The
paper demonstrates that a course on ICT skills can assist SMTEs to further their
development. The survey demonstrates that SMTEs are not utilising Information
technology in their business to its full potential. They primarily see the Internet as a
mechanism for promoting their hotel rather than for training, inter- intra-organisational
and eCommerce purposes. Respondents have recognised that integrating
technology with training will become a management challenge in the future, but at
present it is not considered a priority for many SMTEs. However respondents did
identify their highest preference for content to be incorporated into the online course
modules to be ICT trends and issues. Therefore it can be concluded that SMTEs are
willing to engage in online learning and that the ability of SMTEs in embracing
eLearning which can become crucial determinants of their success.
Keywords: eLearning, online learning systems, SMTEs, Internet, hospitality,
tourism
Enhancing SMTEs Business performance
through the Internet and eLearning Platforms
Introduction
Tourism is a major component of the European economy contributing about 10% of
the annual GDP and representing one in seven of all jobs. With 99% of businesses
classified as small and medium-sized tourist enterprises (SMTEs) in Europe, SMTEs
when grouped together collectively have a considerable influence on both national
and European economies and particularly within the tourism and hospitality industry
(European Commission, 2003 and Buhalis, 1998, 1999). Hence, greater
consideration should be given to SMTEs to help them be innovative, adopt systems
that will allow them to explore their potential. In order to achieve this SMTEs need to
maintain and understand the importance of utilising (new) Information and
communication technologies (ICTs) dynamically.
In particular, SMTEs need to realise that ICTs can be used for not only for
operational purposes but for tactical and strategic management too (Main, 2002).
This can help to empower SMTEs to communicate directly and more efficiently with
prospective customers and suppliers as well as to achieve economies of scale.
Economies of scope can also be acquired through increased knowledge of internal
organisational capabilities. Therefore ICT training in the hospitality industry is
considered essential if SMTEs are to increase their organisational efficiency.
Therefore it should become a priority for SMTE managers to incorporate training into
their overall strategy (Sigala et al, 2001). Online learning (eLearning) systems can
help to deliver ICT training to SMTEs, giving them the opportunity to gain the core
skills and competencies that are critical for SMTEs to remain or to become more
competitive in the eMarketplace.
This paper investigates SMTEs in the European Hotel sector and their utilisation of
the Internet and their perception on online learning systems. The paper also aims to
demonstrate to SMTEs that training is imperative and that ICTs can enable them to
improve their inventory management, strengthen their marketing and
communications strategies and develop their internal business processes. The
paper demonstrates that a course on ICT skills can assist SMTEs to further their
development.
ICTs and SMTEs
The advent of the Internet in the late 1990’s has had a strong impact on the tourism
and hospitality industry (Buhalis, 2003). It is due to the fragmentation of the hotel
industry, which makes the Internet ideal for selling inventory online. The Internet as a
channel of distribution has become one of the most successful channels used by
consumers to research travel options, compare prices and make reservations for
airline tickets, hotel rooms and car rental. Therefore, the provision of online travel
services is the single most successful Business-to-Consumer (B2C) segment on the
Internet (Lauden & Traver, 2002). Research carried out by Forrester Research
(2002) and PhoCusWright (2003) has indicated that the overall percentage of hotel
rooms booked online will grow from an estimated 9% in 2002 to 20% in 2005.
Moreover the Internet is also having a profound effect on the internal and external
operating procedures within the hospitality industry (Cheng and Piccoli, 2002).
Most large hotel organisations have moderate integration of daily operations and
have implemented websites, Intranets and extranets in order to reduce costs;
improve communications internally and externally and to develop alternative
distribution channels. Cline (2001) and O’Connor & Frew (2000) also identified that
hospitality organisations develop ICTs to access new customers on a global basis
and to be able to streamline operating procedures. Integrating daily operations such
as sales, marketing and distribution as well as aggregating demand to drive down
prices on the procurement side are some of the major benefits of the Internet. With
SMTEs still under-represented in Global Distribution Systems (GDSs) and with over
85% of European Hoteliers not listed on GDSs, this has become a severe limitation
for SMTEs as GDS serve more than 50,000 travel agents worldwide (Werthner &
Klein, 1999). Albeit if SMTEs utilise the Internet as their main distribution channel,
then it can enable them to overcome their challenge of being globally represented
and they can develop their virtual site at minimal cost.
Morrision & Thomas (1999), have also implied that the application of ICTs by SMTEs
can help them to overcome the management issues that often confronts these small
businesses. Main (2002) has demonstrated that integrating technology into the
business process and operating in an eBusiness environment can offer SMTEs many
advantages in operational, tactical and strategic management. More importantly
Mutch (1998) has highlighted that SMTEs need to ensure that the technology
implemented is appropriate to the needs and management of their business, as too
often this has not been the case.
Despite all of the benefits to be achieved, the Internet and new technologies have
failed to make a major impact on the majority of the SMTEs in the hospitality industry.
SMTEs have been slow to adopt and to realise the actual benefits of applying ICT to
their business (Standing et al, 1999, Buhalis, 2003 and Morrison et al, 1999).
However, according to Anckar and Walden (2001) there is evidence that there are
small minorities of SMTEs that are taking full advantage of the electronic marketplace
and who are benefiting from the many opportunities that it provides. This in turn
sends out a warning signal to hoteliers who have yet to have an online presence and
urges them to use the Internet as a mainstream distribution channel and to integrate
web-enabling technologies into their daily business process. Otherwise SMTEs will
lose out in maximising both their performance and profitability in the long term.
Characteristics associated with SMTEs are blamed for the
inertia in SMTEs in
embracing the Internet and other web enabled technologies. These barriers have
been identified by Buhalis and Main (1998), Main (2002) Braun (2002) and Moran,
2002, as lack of IT skills and financial resources; insufficient marketing skills;
reluctance to move away from manual processes; and inadequate bargaining power
within traditional distribution channels. However, Louvieris & Lockwood (2002) and
Sigala et al (2001) have indicated that the impact of the Internet and its associated
technologies may also point SMTEs towards the innovative use of eLearning
systems, in which learning can be facilitated where it may not have been possible to
do so before. This may be due to the increased ownership of technology and Internet
access within SMTEs, therefore enabling SMTEs to participate in online learning.
These online learning systems may well help SMTEs to overcome the barriers in
embracing new technologies and integrating them into their business practices.
eLearning
The digital revolution has placed great emphasis on innovation, new business
models, new ways of organising work as well as having a significant impact on the
learning industry (Schertler & Dierich, 2001, Piccoli et al 2001). According to
Business Week (1999), online learning is expected to grow more than 900% between
1999 and 2003. eLearning or online learning is defined as the creation and
distribution of organisational knowledge through the online delivery of information,
communication, education, and training (Wild, Griggs & Downing, 2002) which opens
the door to a learning revolution that could help to create unprecedented
opportunities within SMTEs. One of the key reasons for the growth in the online
learning is due to the fact it is far cheaper than sending employees away from the
workplace to a professional training course.`
Electronic Learning or eLearning as it is commonly called is defined as learning that
takes place anytime someone uses electronic means for gathering information; that’s
acquired without another live person present (Zhang & Nunamaker, 2003). However,
eLearning is not just about using web-based technologies or distance learning but it
is a way in which individuals or organisations exchange information and gain
knowledge. It can include a wide range of learning strategies and technologies from
courses available online, CD-ROMs, DVDs to videoconferencing (Sigala, 2002).
eLearning can be synchronous or live, as in the case of Internet conferences, in
which geographically separated teachers and students can gather in an online
classroom. For the purpose of this paper, eLearning is technology- enabled learning
designed to be run over the Internet. The advantages and disadvantages of
eLearning are illustrated in Table 1. It is also valuable to the hotel industry because
of the high employee turnover rates associated with the industry. Therefore, ongoing
training (via online learning systems) is critical for managers, supervisors and front of
house employees of small hotels.
SMTEs can participate in online learning environments, which are designed as
tutorial systems over the Internet. This can enhance learning, thus allowing
managers and employees the ability to apply knowledge and skills that otherwise
they would have been unable to do in an offline environment, because of the costs
involved. The time constraints and workload of managers of SMTEs frequently
prevents them from attending training sessions during their working hours. Therefore
the prospect of flexible-location, cost-effective and time-independent learning
environments may encourage them to participate more in training sessions via online
learning systems (Steppi, 1989). Enabling SMTEs to acquire new ways in which to
manage knowledge and information can assist them to achieve competitive
advantage due to their skills, competencies and knowledge SMTEs can gain through
this virtual learning process. Hence eLearning enhances intellectual capital of
SMTEs and prepares them to compete in today’s dynamically shifting market.
SMTEs that are not represented in the electronic marketplace will fail to reach new
customers and suffer competitive disadvantages (Buhalis and Main, 1998).
The tourism and hospitality industry have been identified as an industry with one of
the highest levels of skill shortages and staff turnover (HEFCE, 1998). Likewise
Boisevert (2000) has identified training as a critical success factor for the hospitality
industry, but it is considered expensive and time consuming. As 90% of the
accommodation businesses in the hospitality industry are SMTEs, they may find it
increasingly difficult to participate in any type of professional learning for numerous
reasons (Buhalis, 1999). One of the major barriers for SMTEs is the lack of financial
resources available for training purposes and their high degree of concentration on
their operational management. SMTEs also consider training to be a cost rather than
an investment, so little attention is given to any type of training (International Labour
Comment [MS1]:
Organisation, 1997). However, if SMTEs realise that training can influence the skill;
enhance the local economy and reduce high staff turnover rates; then they might
take it more seriously and be willing to invest in training (Bradley and Taylor, 1996).
This may explain why in Europe, the provision of training to SMTEs has become a
central issue of economic policy and why over the last decade the provision of
training and support to SMTEs to participate in training has increased considerably
(European Commission, 2003 and Jameson, 2000).
Table 1 Advantages and disadvantages of eLearning
ADVANTAGES DISADVANTAGES
The technology offers the opportunity
to integrate learning with work
Initial set up and running costs or
purchasing access to commercial
systems can be high
Enhances employee performance in a
dynamic, interactive and measurable
way.
An infrastructure needs to be in place for
employees to use the system
Provides information instantaneously Bandwidth limitations – high speed
internet access is required. Many SMTEs
may not have access or connection to
high speed internet access
Can increase efficiency Lack of a robust internet connection to
take advantage of the graphic rich
courses designed for eLearning
It is a less expensive method of training
as it eliminates travel expenses and the
time that it takes to travel to a training
session.
An assessment system needs to be in
place which helps to determine what
information employees are learning and
to provide feedback to inform managers
of how successful employees are in the
modules.
Enables employee to log on from the
hotel.
Electronic communication requires a
specific skill which not many people have
mastered. However this may depend on
the nature and content of the course
Horton (2000)
Eliminates the need to create and print
bulky manuals, which become obsolete
after being distributed.
Learning is impersonal and limited
interaction with tutor
Mostly modular based, employees can
dedicate shorter time periods over a
number of days or weeks and still learn
the required information
Tutor does not take sufficient feedback
from students and hence limited
diagnostics of learning
Additional material is easily accessible
online
Student requires high degree of self-
discipline
Some courses linked to professional
and academic qualifications
Allows the employee to learn at his/her
own pace in the style of learning that
works best for them.
Ability to retain more information
(Employees can retain 30% more
information from an eLearning platform
compared to 10% retained if learning in
the traditional way.
However, despite the benefits associated with eLearning, some industry experts and
eLearning providers do not see eLearning as a viable platform for training for all skills
or as a replacement for traditional training (Van Hoof & Combrink, 1998). Hence,
Cheng & Piccoli (2002) have also suggested that on the job and face to face training
are important particularly in teaching ‘soft skills’ such as management or technical
skills, where eLearning is not suitable. Moreover Braun (2002) has identified that
SMTEs are still not committed to online training and integrating new technologies to
add value and competitive advantage because they not consider it a priority at
present. .
Methodology of the Study
This paper is based on a project funded by the European Commission - SMART-UP.
which was designed to help European SMTEs in tourism and hospitality to increase
their know-how and ICT literacy through the provision of specific tourism related
modules via an Internet based learning platform and to apply ICT applications to stay
on the leading edge of learning technology. It was also aimed to encourage SMTEs
to work with up to date ICT and management practices. Other aims of the project
were to identify the skills and requirements of SMTEs to ensure that the eLearning
content modules corresponded with their needs. Based on these requirements,
Siemens and Sigma were then able to compile the technical and content user
requirement specifications in conjunction with the potential system users (SMTEs).
Test cases were also generated according to user requirements in order to
ensure/prove that the online learning system was in line with what the SMTEs
specified. The scope of the research was to target small and medium-sized hotels
(SMTEs) in Austria, Ireland, Great Britain and Switzerland. It investigated their usage
of the Internet and their perception of online learning to provide a base for future
research.
This paper brings together a number of indicators that clearly demonstrate where
SMTEs are in relation to Internet awareness and online learning systems. The paper
also provides a set of factors that need to be monitored for the future. This would
help researchers investigating ICT penetration and online learning systems
development in SMTEs in Europe and beyond. It will also help government to
understand further the importance of online learning and information technologies
adoption by SMTEs, so that they can provide further assistance to this sensitive
group.
The principal aim of the study was to:
•
Set up an inter-organisational knowledge and experience network via an
online learning system
•
Extend knowledge and qualification improvement of SMTES
•
Decrease reservations of SMTEs about ICTs
Data Collection
The respective National Hotel Associations such as the British Hospitality Association
(BHA), Austrian Hotel Association (OHA) and HCIMA, Swiss Hotel Association in
each country were employed as intermediaries to acquire access to large numbers of
SMTEs. Developing relationships with industry players, distributors and
representation companies also ensured that respondents adopted a medium to long
term strategy of the Internet. `This study comprised both primary and secondary
research. Secondary research focused on a comprehensive literature review with
data sourced from journal publications, books as well as the Internet which proved to
be a valuable secondary resource for obtaining statistical data. . This secondary
research identified the knowledge already known on SMTEs and their assimilation of
Information and Communication Technologies (ICTs) and eLearning into their
business practices. Primary research consisted of data collected via qualitative and
quantitative methods.
Due to the wide geographic area involved in the study, and the impracticability of
carrying out in-depth qualitative interviews a questionnaire was considered to be the
most appropriate to reach the required population sample (250) across four
European countries. After some prior testing with Austrian hoteliers an open and
closed structured questionnaire was designed. The quantitative research was
conducted through self-administered questionnaires distributed to SMTEs via e-mail
and fax. The survey included hotel SMTEs in Austria, Ireland, Great Britain,
Switzerland and Italy. Alternatively, interested hoteliers were able to download the
questionnaire from the SMART-UP information web page (
http://www.smartup.info).
The quantitative study was employed to assess the management challenges and
Internet usage amongst SMTEs as well as to gain an insight into SMTE perceptions
on eLearning. The questionnaire also provided a snapshot of how SMTEs perceived
online learning. The qualitative data collection involved a telephone survey which
was implemented to boost the response rate. A total of 55 questionnaires were
completed which resulted in a response rate of 22% being achieved, therefore
providing a valid sample size for the subsequent statistical analysis to be carried out.
Limitations
Research was undertaken to identify small and medium-sized hotel properties in
Austria, Great Britain, Ireland and Switzerland. Most of the SMTEs targeted were
either micro (1-5 bedrooms) or medium sized (50+ bedrooms). Following discussion
with several hoteliers on the phone, it was realised that some were at a very
advanced stage with eCommerce. However, the majority of the very small proprietors
were in the denial stage (i.e. they did not want to know about the Internet). A number
of larger properties were only interested/were too involved in the operational
management of their organisation and took a short-term approach. They failed to
identify the benefits that can be obtained from eCommerce or/and training. Many of
the hoteliers also reacted badly to the word – university, and they failed to recognise
the benefits that the university could bring in helping them to understand and learn
about eCommerce. Limitations also arose from the e-mail survey. It was difficult to
control the response speed. SMTEs did not respond to the questionnaire as a vast
majority indicated that many of the questions were designed for academics with little
relevance to small hotels. Therefore a low response rate was achieved via this
method, as there was little opportunity for explanation or interaction.
Analysis/Results
Management challenges within SMTEs
The respondents were asked to identify what they considered to be their major
challenges facing their organisation today. It is clear from the results (70%) that
Human Resource Management is the biggest challenge for SMTEs. Other challenges
include sales and marketing, finance and quality management as illustrated in Figure
1. Due to the characteristics attributed to the hospitality industry (i.e. high staff
turnover) this is not surprising. No indication was provided that Information
Technology was a major management challenge at present. However, results did
signify that 20% of SMTEs identified IT issues becoming one of the biggest know-
how gaps in the future. This could demonstrate that the remaining percentage are
either technologically advanced or they were still in the denial stages, and do not
envisage that Information technologies are important for future competitiveness. The
latter may be more appropriate as previous studies have confirmed that SMTE
managers are reluctant to invest, learn or adopt in ICTs as they do not consider it a
priority at present.
Figure 1 Management Challenges within SMTEs
Internet Usage by SMTEs
The survey clearly demonstrated that a high percentage (93%) of the respondents
use the Internet, primarily as a mechanism to promote their hotel, i.e. have their own
website. SMTEs have obviously realised that even with the lack of financial
resources they can take advantage of the Internet as a direct distribution channel in
reaching a global market and at a lower cost than distributing through the traditional
distribution channels.
SMTEs do not use the Internet for inter- and intra-organisational purposes. Figure 2
illustrates that SMTEs use the Internet for other purposes such as sourcing
information, online shopping and banking and industry information. This may be due
to the lack of knowledge and skill by managers of SMTEs on how to use the Internet
for intra- and inter-organisational communication (i.e. Intranet and Extranet).
Starkov and Price (2002) reported in order to be successful online, it is critical for
hotels to have online reservations. From the qualitative survey it emerged that very
few SMTEs facilitate online reservations. However, the majority of SMTEs surveyed
do have booking request forms and use e-mail to communicate and provide
confirmation of a reservation back to the customer. The low level of eCommerce
may be explained by the fact that the respondents of the survey was predominately
focused on SMTEs, who have yet to explore the Internet to its full potential and for
whom eCommerce applications still represents a further stage of adaptation .
Figure 2 Purposes for SMTEs using the Internet
0 10 20 30 40 50 60 70
%of Cases
Quality Management
Finance
Sales & Marketing
Human Resource Mgt
0 20 40 60 80 100
% of Cases
Industry Information
online Shopping
Online Banking
Information Source
Present the hotel
Although SMTEs usage of the Internet is relatively high for certain purposes, there
were also some barriers identified that prevented SMTEs using the Internet to its full
capability. These barriers are illustrated in Figure 3. Firstly complexity of trying to
navigate through websites was recognised as the main inhibitor; secondly download
time was perceived to be too slow; which may be due to inefficient hardware
systems; thirdly, the design of websites and finally too little information was available.
Figure 3 Barriers preventing SMTEs to use the Internet to full capacity
The above analysis demonstrates that the vast majority of SMTEs use the Internet as
a digital brochure and promote limited information through their web page.
Interactivity is primarily through e-mail, and the content is more static than dynamic.
Qualitative research also confirmed that the majority of SMTEs are unable to develop
a comprehensive eMarketing strategy which would have enabled them to promote
their URL, ensure search engine optimisation and drive Customer Relationship
Management (CRM) to a wider and more targeted audience. Hence, this is why
SMTEs still regard their web page as their static digital brochure.
Professional Training within SMTEs
Due to high staff turnover rates, associated with the hospitality industry, it has
become critical for managers of SMTEs to introduce training either on the job and/or
via online to retain and educate staff. A relatively high number (73%) of the
respondents specified that it was the managers who attended professional training
units regularly. Although this indicates a positive reaction to training, it can also be
exposed as a negative comment as it could also indicate that little time is then spent
in-house training, which coincidently has an effect on high staff turnover rates, thus
supporting the view of HEFCE (1998), Boisevert (2000) and Buhalis (1999). One
third of hoteliers who did not find the time to attend training sessions by professional
bodies attributed this to various reasons. Training was not considered an investment
for most SMTEs who concentrated on their operational management. Therefore, it
could be implied here that there is a high demand for online training as it does not
involve travelling away from the business and to the degree that training can be
delivered at flexible hours to match the yearly, seasonal and daily seasonality of the
hotel. Thus, the participation of SMTEs in online training may not only benefit SMTEs
widely but it would also be more cost-effective in the long-term.
The knowledge of SMTEs in comparison to their larger counterparts, i.e. hotel chains
on IT maybe somewhat premature. However all of the respondents have managed to
develop an online presence in one way or another. The application of technology by
SMTEs to create an Internet presence was very high (93%) and may be attributed to
any training sessions that SMTEs managers attended. These professional training
sessions give the managers the ability to apply the knowledge and skills gained to
develop an Internet presence, regardless of its sophistication levels. Alternatively,
SMTEs may have outsourced their web development to an ASP provider; webs
0510 15 20 25 30 35 40
% of Cases
Not enough info
Complexity
Dow nload time slow
Design of w ebsites
design company; a hotel representation company; or simply have their hotel property
represented on a Destination Management System (DMS).
Online Learning Content
The content of online learning modules perceived by the majority of respondents to
be useful for inclusion in an online learning system was predominately focused on
ICT trends, followed by marketing, strategy, law, quality management and industry
news as illustrated in Figure 4. However, none of the respondents indicated that
learning about basic technical skills as important enough to be included in an online
learning module. Therefore, it can be assumed that Hotel SMTEs may outsource any
technical development or maintenance due to inhibiting factors, such as, lack of in-
house technical skills or financial resources. However, the results also gave the
indication that hotel SMTEs are becoming more conscious of the importance of ICTs.
They are willing to learn how they can utilise ICTs to help them achieve competitive
advantage in the digital world.
Figure 4 Preferred Online Learning Content
The survey results also indicated that Internet links, access to download online
consultancy reports, periodical newsletters on hotel industry trends; and access to a
range of academic resources to support their understanding and enhance their
learning are desirable features for the eLearning environment. In addition, advice for
further education and information on workshops and seminars was also considered
useful by 16% as demonstrated in Figure 5.
Figure 5 Additional information sources for online courses
0
5
10
15
20
25
30
35
% of Cases
Trends (ICT)
Marketing
Quality
Management
Industry
News
Strategy
Law
16%
14%
31%
25%
14%
Advice on Seminars etc
Internet Links
Dow nloads - Reports
New sletters
Book/Journals
The advantages and disadvantages perceived by online learning systems
As discussed in the literature, online learning has specific advantages to that of
traditional learning. Mason (2001) has suggested that ‘time is the new distance’. This
can be applied to SMTEs where lack the time; rather than the long distance; is a key
inhibiting factor for them to participate in an off-line learning environment.
Approximately 74% of the respondents perceived time independence as the main
advantage of online learning. Thus, enabling SMTEs to study according to their
seasonability and other operational management commitments they may have. Other
factors included quick and easy access to course content and up to date information.
Low costs were specified as a major advantage by 14% for participating in online
learning.
SMTEs value prompt and informative feedback on their work, as they maintain it has
an influence on their online learning experience. However, lack of interpersonal
contact with other users and lack of communication, support and feedback from
module co-ordinators which lead to low motivational levels was one of the major
disadvantages perceived by SMTEs from online learning. It is also interesting to
note that a study by Alexander (2001) reported that adequate access to technical
support is essential for learners in achieving successful learning outcomes. The
survey results gave no indication that information on technological skill (i.e. using a
computer) or inadequate technical support was considered a major disadvantage for
participating in online learning activities. Other disadvantages perceived by SMTEs
were lack of industry and best practice examples. SMTEs also indicated that online
learning often does not give the managers or employees the possibility of achieving a
recognised qualification or accreditation. Moreover, if recognition was given it could
provide an incentive to employees and may also help to alleviate high staff turnover.
Discussion and Implications
The main challenge for SMTEs in their current situation was identified as dealing with
human resource management. The adoption and implementation of ICTs is not a
priority for many SMTEs at present. Due to the characteristics associated with
SMTEs and their slow adoption of ICTs this is not surprising. Another major downfall
of SMTEs as identified by Connolly et al (1998) is that SMTEs understandably do not
want to wait long-term to see their return on investment on ICTs but want to see the
benefits immediately.
It is evident from the survey however; many SMTEs may be more willing to engage in
the use of the Internet and online learning if they can overcome the barriers that are
preventing them from moving forward in this digital economy. These have been
identified as lack of financial resources and the time and unwillingness to invest in
training. SMTEs have yet to realise that by incorporating training it gives them the
ability to solve some of their human resource issues, such as high staff turnover,
which is so commonplace in the hospitality industry. It is critical for SMTEs to invest
in new skills through online learning. This also gives SMTEs the opportunity to exploit
the new technologies available and avoid the loss of potential competitive advantage.
It is important for SMTEs to realise that by learning online they will not only increase
their knowledge but their core competencies. This can help SMTEs to overcome their
management challenges and issues. It was therefore proposed that the online
learning modules for the eLearning Platform incorporated the following topics: human
resource management, eCommerce, quality management, capacity management
and product development. The modules were designed by Universities of the 4
participating countries: Austria, Great Britain, Ireland and Switzerland. As part of the
project, an eLearning platform (SITOS) is currently being implemented into 4
European countries to attract SMTEs into an eLearning environment, which should
facilitate their transition towards the digital world. The aim is to raise awareness on
the importance of the above modules and how they can play a fundamental role in
improving the day-to-day operation of SMTEs in the long-term. It was also decided
to provide benchmarking models and best practice methods to enable SMTEs to
derive problem solutions and to provide a better understanding of what they need to
achieve to improve their competitive advantage.
Another important priority of eLearning is to assess the future quality of eLearning
needs. The provision of consistent and accurate content at the right time can support
effective training and help managers and employees of SMTEs to acquire the
appropriate knowledge and skills. They can then apply this knowledge to improve
individual and organisational performance and which according to Hinkin & Tracey
(2000) may be linked to a reduction in high employee turnover too.
The SMART-UP project has aimed to provide this by employing intelligent agents
which can be used by SMTEs for training purposes along with the online learning
modules. Information is retrieved from various sources such as online journals, online
news portals etc. These links can be incorporated in the eLearning platform in
accordance to SMTE specifications. It also aims to dynamically increase the network
of know-how sources (i.e. universities, hotel associations) due to inter-agent
communication using this intelligent systems platform. Figure 6 illustrates how the
proposed SMART-UP online learning system will operate using the intelligent agents,
know-how sources, national hotel associations and the universities for the provision
of recent, accurate, static and dynamic information.
Figure 6 Design of the SMART- UP online learning system
- Intelligent Agents
- Expert Discussions
-
Mailing
-
Service
Recent information:
- Learning Modules
- Benchmarking Cases
Static Information:
- Exams/Performance
Measurement
- Certification
Test Section
Users
SMTEs
Intermediaries
National Hotel
Associations
University Experts
Intermediaries
National Hotel
Associations
Non-achievement of a qualification or accreditation was a major disadvantage
perceived by SMTEs from online learning. However, due to the traditional approach
to accreditation for completion of classes and programs this is not considered a
viable standard of measurement in an eLearning environment. This may be due to
the fact that the online learning is self-directed and content can come from a wide
variety of sources. The eLearning modules need to be assessed in appropriate ways
and the assessment needs to reflect the learning objectives of the module. Although
the SMART-UP model incorporates a test section it does not provide an official
qualification recognised by the hotel industry. Therefore an approach could be taken
by the government, professional bodies, universities and the private sector to grant
official recognition and reward for eLearning based programs. This may then enable
employees in SMTEs to gradually develop their learning portfolio to achieve
University degrees or professional qualifications and may provide more of an
incentive for SMTEs to participate in online learning programs.
Recommendations
It is important to create conditions that are in favour of eLearning and to eliminate
barriers that prevent people from participating in an eLearning environment.
Enabling employees to participate in eLearning at work rather than outside working
hours is important as well as ensuring that the course content is applicable and
specific to the learning requirements of SMTEs. Otherwise this can be a less
satisfying eLearning experience and discourage employees from engaging in it. The
provision of incentives and funding by government to SMTEs that invest in
developing eLearning within their organisations may help to promote broader access
to eLearning.
With eLearning still an emerging field the government, universities and the private
sector should invest in research and development aimed at furthering the
understanding of best practices in online learning along with its delivery and service.
Having identified the social and cultural issues related to SMTEs, an investigation
into the ways in which technology can be introduced to SMTEs is critical so that the
value of eLearning can be enhanced in this technology-enabled environment.
eLearning is also only possible when the appropriate infrastructure and technology is
in place. This infrastructure may include high-speed telecommunications, i.e.
broadband Internet services and connectivity and the high quality software which is
required for effective eLearning. However many SMTEs may not have the
technology, the high-speed access and the skills required to make the most of
eLearning. Therefore government, universities, associations and private sector must
address this issue to ensure that continued work and investment is carried out to
enable SMTEs to have this access.
Conclusion
As Braun (2002) indicated, SMTEs suffer from a lack of a strategic sense of how to
move forward in the eMarketplace. SMTEs use the Internet mainly to promote their
property through a website. They have yet to incorporate an eBusiness strategy into
their business, use web-enabled technologies to assist them in their internal and
external business processes. Therefore, the challenge for SMTEs is to realise the full
potential of eLearning as a driver to increasing productivity, performance and profit,
by making it an integral part of their strategy and operations. The ability of SMTEs to
embrace eLearning can become crucial determinants of success and improve the
competitiveness of SMTEs and point the way to an era of unprecedented growth and
opportunity in the digital economy.
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