Entrepreneurial market performance (EMP) in tourism and hospitality is highly vulnerable. This study aims to fill a gap in the literature by examining the impact of governmental non-monetary support (GNMS) – such as consultation, information and human resource support – on EMP in small businesses in two sectors of the hospitality industry, particularly considering how marketing innovation (MI) and service/product innovation (S/PI) mediate this relationship, with entrepreneurial passion (EP) moderating the effect.
The theoretical foundation of this study was based on the dynamic capabilities theory (DCT) and interpretive structural modelling (ISM) framework. The research employed a sequential explanatory mixed-methods design, commencing with a survey of 451 owners and managers analysed using partial least squares structural equation modelling (PLS-SEM) to examine the interactions among key factors. This was subsequently followed by a focus group of five officials analysed through ISM to determine the main streams of GNMS.
The study fills a research gap by showing how government non-monetary services enhance market performance in small tourism and hospitality businesses. Also, the results from the moderating effect analysis indicated that entrepreneurial passion (EP) served as a moderator in the relationship between GNMS, marketing innovation (MI) and service/product innovation (S/PI) on entrepreneurs’ performance.
Entrepreneurs may focus on innovating their marketing strategies and improving their service/product offerings while actively pursuing governmental non-monetary support and boosting their entrepreneurial passion. Egyptian policymakers could focus on optimizing non-monetary support for entrepreneurs.
This study advances DCT theory and ISM framework by emphasizing the critical role of entrepreneurial access to government support in consultation, information and human resource domains.
