Transformational Leadership in the Alpine Tourism Industry: Characterizing the Leadership Dimensions Among Entrepreneurs of Small and Medium-Sized Enterprises

Introduction

The tourism industry itself “(…) is constituted by a fast-paced, dynamic, unpredictable, and unstable operating environment that requires an extraordinary leadership ability (…)” (Vargas- Sevalle et al., 2020, p. 73). Particularly in the alpine tourism industry, the small-scale structures, seasonality and a relatively high employee-turnover rate implicate tremendous challenges for entrepreneurs (Peters, 2005). Most tourism destinations in the alpine regions are dominated by small and medium-sized enterprises (SMEs) (Schwaiger & Zehrer, 2021; Weiermair, 2000). Since entrepreneurs of SMEs are usually deeply involved in daily business due to the small-scale structures, their leadership has a major influence on business performance (Peters, 2005). Particularly the notion of transformational leadership is of high relevance in the tourism industry (Farrell, 2022). Especially in SMEs, transformational leaders can create high levels of motivation and work engagement which, in turn, can result in a competitive advantage, for example in terms of service quality, service performance and customer satisfaction (Chen & Wu, 2020; Monje-Amor et al., 2020). Thus, entrepreneurs of SMEs are essential for not only driving forward their businesses but also the whole tourism industry (Haven-Tang & Jones, 2012).

The statement „Leadership is one of the most observed and least understood phenomena on earth” (Burns, 1978, p. 2) applies strikingly well to research on transformational leadership in SMEs in the alpine tourism industry. It is widely acknowledged that leadership in larger businesses differs from leadership in smaller companies, where special leadership qualities, abilities and characteristics are required due to the involvement of entrepreneurs in everyday business (Peters, 2005). Whereas transformational leadership in general has been studied so far, there are only few studies investigating this form of leadership among entrepreneurs of SMEs in alpine tourism destinations despite its immediate relevance for the industry, creating the need for further research in this area.

Moreover, in alpine destinations, a variety of private, public-private, and public stakeholders are producing the tourism product and offering this experience to consumers (Buhalis, 2000; Raich & Zehrer, 2010; Siller & Haselwanter, 2019). The few existing studies on transformational leadership in the tourism industry are mainly focused on hotels (Baytok et al., 2014; Hinkin & Tracey, 1994; Vargas-Sevalle et al., 2020). Other crucial stakeholders in alpine tourism destinations such as destination management organizations (DMOs), cable car companies and ski schools are often not considered in these studies. Next to that, a strong tendency towards quantitative approaches, for example in the studies by Amankwaa et al. (2019), Liang et al. (2017) and Rothfelder et al. (2013) can be identified, whereas qualitative studies in this field are rare, giving rise to the need for a more holistic and qualitative study in the field of transformational leadership arises.