Moderating effect of tourism business networks on tourism backward linkage with local micro and small enterprises in Kisumu County.

Abstract

The study aimed to establish whether the effect of physical location and type of tourism enterprises, on extent of tourism backward linkage with local enterprises in Kisumu County was moderated by business networks established by tourism enterprises. Cross section survey of 106 tourism enterprises was conducted and ANOVA was used in the analysis. It was established that the effect of type of tourism enterprise on the local purchase ratio did not vary with the level of business networks developed by tourism businesses, but the effect of physical location of tourism enterprises on local purchase ratio varied with level of networks developed. Also, tourism enterprises with three and more business networks and located in outskirts of Kisumu City and rural areas outperform their counterparts with two and less business networks in creating linkages with local economy. However, tourism enterprises with two and less business networks outperform those with three and more business networks in creating local economic linkages in Kisumu Central Business District (CBD). Therefore, collaborative strategies amongst tourism enterprises in rural areas invigorated local economy more than competition amongst them, but increased competition amongst enterprises in Kisumu CBD as opposed to cooperation improves backward linkage with local economy.