Due to advancements in technology and digital connectivity, travel patterns have changed. Technological developments have increased the amount of information and inspiration available to consumers, and big data analytics allows for the creation of innovative insights. When it comes to implementing cutting-edge technologies, small businesses typically lag behind larger ones. In light of the above, this study aims to examine the extent of usage and challenges SMEs face concerning e-marketing. SMEs in the tourism sector have demonstrated that they are drivers of economic growth through the development of entrepreneurial skills and job creation. In this study, data was qualitatively collected from 14 SME service providers, through a purposive sampling method. The findings revealed that SMEs struggle with the adoption of e-marketing. Moreover, the findings revealed that SMEs are also faced with the challenge of easy access to funding, this was found to affect their flexibility towards digital transformation. Lastly, this study found that SMEs are faced with the challenge of lack of expertise to implement digital transformations. This study concludes that, although in South Africa government funding provided to SMEs through grants plays a critical role, it is still not enough. The government can further their SME development initiatives through public sector and private sector partnerships. By increasing SMEs access to funding, joint SME development programs offer a substantial chance to promote entrepreneurship in South Africa.

Keywords: SMEs; e-marketing; tourism; digital transformation; Co-creation

References

Abbas, J., Rehman, S., Aldereai, O., Al-Sulaiti, K. I., & Shah, S. A. R. (2023). Tourism management in financial crisis and industry 4.0 effects: Managers traits for technology adoption in reshaping and reinventing human management systems. Human Systems Management. https://ouci.dntb.gov.ua/en/works/4rk2JWMl/

Al-Hinai, N. (2020). Introduction to biomedical signal processing and artificial intelligence. In Biomedical signal processing and artificial intelligence in healthcare. Academic Press.

Alhowaish, A. K. (2016). Is tourism development a sustainable economic growth strategy in the long run? Evidence from GCC countries. Sustainability, 8(7), 605. https://www.mdpi.com/2071-1050/8/7/605

Awa, H. O., & Ojiabo, O. U. (2016). A model of adoption determinants of ERP within TOE framework. Information Technology & People, 29(4), 901-930. https://www.emerald.com/insight/content/doi/10.1108/ITP-03-2015-0068/full/html

Bayram, G. E. (2020). Impact of information technology on tourism. In The emerald handbook of ICT in tourism and hospitality (pp. 243-257). Emerald Publishing Limited.

Breidbach, C. F., & Maglio, P. P. (2016). Technology-enabled value co-creation: An empirical analysis of actors, resources, and practices. Industrial Marketing Management, 56, 73-85. https://www.sciencedirect.com/science/article/abs/pii/S0019850116300438

Butler, G., & Rogerson, C. M. (2016). Inclusive local tourism development in South Africa: Evidence from Dullstroom. Local Economy, 31(1-2), 264-281. https://www.fosaf.org.za/documents/Butler-and-Rogerson-Dullstroom-2016.pdf

Camilleri, M. A. (2018). Travel marketing, tourism economics and the airline product: An introduction to theory and practice. Springer International Publishing.

Chigora, F., & Zvavahera, P. (2015). Be green and you are branded: Case of small to medium enterprises in Zimbabwe tourism sector. Journal of Entrepreneurship and Business Innovation, 2(2), 1-13. https://www.macrothink.org/journal/index.php/jebi/article/view/7963/0

Chuang, S. H. (2018). Facilitating the chain of market orientation to value co-creation: The mediating role of e-marketing adoption. Journal of destination marketing & management, 7, 39-49. https://isiarticles.com/bundles/Article/pre/pdf/81930.pdf

Corral-Marfil, J. A., Serrat, N. A., Ferràs, X., & Nylund, P. A. (2015). PlanetFactory: Competing under rapid technological change. Journal of Cases on Information Technology (JCIT), 17(2), 1-13. https://merit.url.edu/en/publications/planetfactory-competing-under-rapid-technological-change-4

Eby, P., Peel, A. J., Hoegh, A., Madden, W., Giles, J. R., Hudson, P. J., & Plowright, R. K. (2023). Pathogen spillover driven by rapid changes in bat ecology. Nature, 613(7943), 340-344. https://www.nature.com/articles/s41586-022-05506-2

El-Gohary, H. (2012). Factors affecting E-Marketing adoption and implementation in tourism firms: An empirical investigation of Egyptian small tourism organisations. Tourism management, 33(5), 1256-1269. https://www.sciencedirect.com/science/article/abs/pii/S0261517711002147

Gaille, L. (2015). Advantages and disadvantages of convenience sampling. Vittana. https://vittana.org/15-advantages-and-disadvantages-ofconvenience-sampling.

Grandcourt, M. A. E. (2020). The role of the United Nations World Tourism Organization (UNWTO) in tourism and sustainable development in Africa. Routledge handbook of tourism in Africa. Routledge.

Hamidi, F., Shams Gharneh, N., & Khajeheian, D. (2019). A conceptual framework for value co-creation in service enterprises (case of tourism agencies). Sustainability, 12(1), 213. https://www.mdpi.com/2071-1050/12/1/213

Ind, N., & Coates, N. (2013). The meanings of co‐creation. European business review, 25(1), 86-95. https://www.emerald.com/insight/content/doi/10.1108/09555341311287754/full/html

Khan, F. R., & Krishnamurthy, J. (2016). Future proofing of tourism entrepreneurship in Oman: Challenges and prospects. Journal of Work-Applied Management, 8(1), 79-94. https://www.emerald.com/insight/content/doi/10.1108/JWAM-06-2016-0008/full/html

Komulainen, H. (2014). The role of learning in value co-creation in new technological B2B services. Journal of Business & Industrial Marketing, 29(3), 238-252. https://www.researchgate.net/publication/263341289_The_role_of_learning_in_value_co-creation_in_new_technological_B2B_services

Labanauskaitė, D., Fiore, M., & Stašys, R. (2020). Use of E-marketing tools as communication management in the tourism industry. Tourism Management Perspectives, 34, 100652. https://www.sciencedirect.com/science/article/abs/pii/S2211973620300192

Ma, Y., Rong, K., Luo, Y., Wang, Y., Mangalagiu, D., & Thornton, T. F. (2019). Value co-creation for sustainable consumption and production in the sharing economy in China. Journal of Cleaner Production, 208, 1148-1158. https://www.sciencedirect.com/science/article/abs/pii/S0959652618331512

Mametja, T. R. S., Lebambo, M. M., & Tichaawa, T. M. (2023). The adoption of digital technologies by women-owned tourism micro-enterprises. https://ujcontent.uj.ac.za/esploro/outputs/journalArticle/The-adoption-of-digital-technologies-by/9927508607691

Mapunda, M. A. (2021). Determinants of e-marketing adoption by small and medium enterprises in African countries. African Journal of Applied Research, 7(2), 71-87. https://www.ajaronline.com/index.php/AJAR/article/view/404

Mogale, P. T., & Odeku, K. O. (2019). Reflections on major challenges facing tourism sector in South Africa. African Journal of Hospitality, Tourism and Leisure, 8(3), 1-16. https://www.ajhtl.com/uploads/7/1/6/3/7163688/article_63_vol_8_3__2019.pdf

Mohammadi, F., Yazdani, H. R., Jami Pour, M., & Soltani, M. (2021). Co-creation in tourism: A systematic mapping study. Tourism Review, 76(2), 305-343. https://www.itsairanj.ir/article_132289.html?lang=en

Mtshali, M., Mtapuri, O., & Shamase, S. P. (2017). Experiences of black-owned small medium and micro enterprises in the accommodation tourism-sub sector in selected Durban townships, KwaZulu-Natal. African Journal of Hospitality, Tourism and Leisure, 6(3), 130-141. https://www.ajhtl.com/uploads/7/1/6/3/7163688/article_24_vol_6__3__2017.pdf

Munira Mhd Rashid, M. M. R., Mastura Jaafar, M. J., & Norziani Dahalan, N. D. (2013). Tourism and SME businesses opportunity in Lenggong Valley World Archaeological Heritage Site Malaysia. http://eprints.usm.my/34983/1/HBP17.pdf

Musavengane, R., & Leonard, L. (2022). COVID-19 impacts on tourism: Southern Africa’s experiences. Development Southern Africa, 39(1), 1-2. https://www.tandfonline.com/doi/pdf/10.1080/0376835X.2021.2018995

Mxunyelwa, S., & Vallabh, D. (2017). Skills as impediment to small and medium tourism enterprises (SMTEs), Eastern Cape, South Africa. African Journal of Hospitality, Tourism and Leisure, 6(4), 1-8.

Nasution, H. N., & Mavondo, F. T. (2008). Customer value in the hotel industry: What managers believe they deliver and what customer experience. International Journal of Hospitality Management, 27(2), 204-213. https://research.monash.edu/en/publications/customer-value-in-the-hotel-industry-what-managers-believe-they-d

Nithikulsak, A. (2022). An e-transition model towards value co-creation for innovation in SMEs: A capability-based perspective. [Doctoral dissertation, University of Kent]. https://kar.kent.ac.uk/93050/

Njiro, E., Mazwai, T., & Urban, B. (2010). A situational analysis of small businesses and enterprises in the townships of the Gauteng province of South Africa. Presented at the First International Conference, Soweto Campus, South Africa.

Novitasari, D., Aryati, I., & Damayanti, R. (2021). Analysis e-marketing, product innovation, and brand image on purchase decisions Janji Jiwa Coffee in Surakarta. Jurnal Mantik, 4(4), 2495-2498. https://iocscience.org/ejournal/index.php/mantik/article/view/1197

Nugroho, H., & Ika, A. (2016, May). E-Commerce: A tool to enchance small medium tourism enterprises. Asia Tourism Forum 2016-the 12th Biennial Conference of Hospitality and Tourism Industry in Asia. Atlantis Press.

Obeidat, A. M. (2021). E-marketing and its impact on the competitive advantage. Ilkogretim Online, 20(5). https://www.bibliomed.org/mnsfulltext/218/1300-1310_EEO2003146.pdf?1716191932

OECD (2020), “Preparing tourism businesses for the digital future”, OECD Tourism Trends and Policies, OECD Publishing. https://www.oecd-ilibrary.org/sites/f528d444-en/index.html?itemId=/content/component/f528d444-en

Oliveira, T., Martins, R., Sarker, S., Thomas, M., & Popovič, A. (2019). Understanding SaaS adoption: The moderating impact of the environment context. International Journal of Information Management, 49, 1-12. https://www.sciencedirect.com/science/article/abs/pii/S026840121830673X

Pathak, B., Ashok, M., & Leng Tan, Y. (2022). Value co-creation in the B2B context: A conceptual framework and its implications. The Service Industries Journal, 42(3-4), 178-205. https://www.tandfonline.com/doi/full/10.1080/02642069.2021.1989414

Pathak, B., Ashok, M., & Tan, Y. L. (2020). Value co-destruction: Exploring the role of actors’ opportunism in the B2B context. International Journal of Information Management, 52, 102093. https://ideas.repec.org/a/eee/ininma/v52y2020ics0268401219308047.html

Pillay, K. (2017). SA tourism plans to double growth of unique SMME tourism offering by 2018. Traveller 24.

Prahalad, C. K., & Ramaswamy, V. (2004). Co-creation experiences: The next practice in value creation. Journal of Interactive Marketing, 18(3), 5-14. https://www.sciencedirect.com/science/article/abs/pii/S1094996804701073

Ramli, A. M., Asby, P. N. K., Noor, H. M., & Afrizal, T. (2022). Challenges encountered by smes in tourism industry: A review from 2017 to 2021. Journal of Asian Behavioural Studies, 7(21), 1-13. https://jabs.e-iph.co.uk/index.php/jABs/article/view/405

Rogerson, C. M. (2020). Apartheid hotels: The rise and fall of the ‘non-white’ hotel in South Africa. New Directions in South African Tourism Geographies, 33-54. https://ouci.dntb.gov.ua/en/works/73O6bR27/

Salavatian, S., Hesampour, M., & Soltani, T. (2020). Analyzing network of media organization, audiences, and ICTs based on actor network theory: The case of IRIB. Contemporary Applications of Actor Network Theory, 231-255. https://ouci.dntb.gov.ua/en/works/4bx5QvN9/

Salehi, M., Mirzaei, H., Aghaei, M., & Abyari, M. (2012). Dissimilarity of e-marketing VS traditional marketing. International Journal of Academic Research in Business and Social Sciences, 2(1), 510. https://www.axware.nl/sites/default/files/fulltext/548.pdf

Singh, R., & Raghuvanshi, N. (2012). Women entrepreneurship issues, challenges and empowerment through self-help groups: An overview of Himachal Pradesh. International Journal of Democratic and Development Studies, 1(1), 45-58. https://www.proquest.com/docview/1418665025?sourcetype=Scholarly%20Journals

Sixaba, Z., & Rogerson, C. M. (2023). ‘Transformation’ and tourism small firm development in South Africa: Evidence from Eastern Cape Province. Studia Periegetica, 41(1), 83-108. http://bazekon.icm.edu.pl/bazekon/element/bwmeta1.element.ekon-element-000171663290

Song, L., Peko, G., & Sundaram, D. (2017). Competing in a rapidly changing world: Elements and models of an adaptive Chinese organization. In Future Network Systems and Security: Third International Conference, FNSS 2017, Gainesville, FL, USA, August 31-September 2, 2017, Proceedings (pp. 139-153). Springer International Publishing.

Srinivasan, R., Lilien, G. L., & Rangaswamy, A. (2002). Technological opportunism and radical technology adoption: An application to e-business. Journal of Marketing, 66(3), 47-60. https://pure.psu.edu/en/publications/technological-opportunism-and-radical-technology-adoption-an-appl

Sunarti, N., Kurniawan, P. S., Sujana, E., & Yasa, I. N. P. (2020). Fraud Risk Management: An Anti-Fraud Model for Tourist Accommodation in Bali. Asia Pacific Fraud Journal, 5(1), 137-146. https://apfjournal.or.id/index.php/apf/article/view/144

Trainor, K. J., Rapp, A., Beitelspacher, L. S., & Schillewaert, N. (2011). Integrating information technology and marketing: An examination of the drivers and outcomes of e-Marketing capability. Industrial Marketing Management, 40(1), 162-174. https://www.emerald.com/insight/content/doi/10.1108/02634501111117593/full/html

Tseane-Gumbi, L. A. & Ani, K. J. (2019). Tourism and transformation of the South Africa’s former homelands: Lessons and implications for Africa. African Renaissance, 93-108. https://www.proquest.com/docview/2328301007?sourcetype=Scholarly%20Journals

Tseane-Gumbi L. A. & Ani, K. J. (2018). The political economy of mining tourism: A strategic nation building opportunity for the Northwest Province, South Africa, African Renaissance, 15(3), 125-138. https://www.researchgate.net/publication/329933073_The_political_economy_of_mining_tourism_A_strategic_nation-building_opportunity_for_South_Africa's_North_West_province

Tsiotsou, R. H., & Vlachopoulou, M. (2011). Understanding the effects of market orientation and e‐marketing on service performance. Marketing Intelligence & Planning, 29(2), 141-155.

Van Nuenen, T., & Scarles, C. (2021). Advancements in technology and digital media in tourism. Tourist Studies, 21(1), 119-132. https://journals.sagepub.com/doi/full/10.1177/1468797621990410