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Journal of Destination Marketing & Management: Giacomo Del Chiappa, Rodolfo Baggio

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Journal of Destination Marketing & Management 4 (2015) 145–150

Contents lists available at ScienceDirect

Journal of Destination Marketing & Management


journal homepage: www.elsevier.com/locate/jdmm

Research Paper

Knowledge transfer in smart tourism destinations: Analyzing


the effects of a network structure
Giacomo Del Chiappa a,n, Rodolfo Baggio b
a
Department of Economics and Business, University of Sassari and CRENoS, Via Muroni 25, 07100 Sassari, Italy
b
Master in Economics and Tourism, Dondena Center for Research on Social Dynamics, Bocconi University, Italy

ar t ic l e i nf o a b s t r a c t

Article history: In academia, as well in the industry, there is currently an increasing interest in the concept of smart
Received 4 July 2014 tourism destinations. Specifically, there is widespread recognition of the role that ICTs, the Internet of
Accepted 25 February 2015 Things and Cloud Computing play in providing instruments and platforms to facilitate the dissemination
Available online 4 April 2015
of information and knowledge among stakeholders, thus enhancing innovation and destination
Keywords: competitiveness. Despite that, not much research exists that aims at understanding the processes of
Smart tourism destinations information and knowledge transfer, sharing, and conversion in smart tourism destinations. This paper
Knowledge transfer seeks to deepen the scientific debate around this topic by applying a network analytic approach to the
Epidemic diffusion models cases of three tourism destinations. Findings reveal that effective knowledge-based destination manage-
Network analysis
ment studies should consider both the virtual and the real components of the network structure of the
Digital business ecosystems
destination. Contributions to the body of knowledge and managerial implications are discussed and
suggestions for further research are given.
& 2015 Elsevier Ltd. All rights reserved.

1. Introduction Branchi, Fernàndez-Valdivielso, & Matias, 2014) and sustainability


(Morelli et al., 2013).
In recent decades, information and communication technologies In an increasingly globalized and extremely dynamic environ-
(ICTs) have radically and unforeseeably changed our society as a ment, innovation is the key element for cities and tourism
whole, with travel and tourism being one of the sectors that has been destinations to be competitive. Organizations of any type should
most transformed, especially since the Internet of Things emerged consider location and spatial information as a common goods, thus
(Atzori, Iera, & Morabito, 2010), making available a multidimensional meaning that they should do as much as they can to make such
dataset known as 'big data'. The progress to a higher socialization of information available within the network, thus stimulating inno-
ICTs, along with the advent of the Internet of Things and Cloud vation at both the individual and collective levels (Roche, Nabian,
Computing, has made (and fashionable) the recent concept of digital Kloeckl, & Ratti, 2012). Sensing, analyzing, and integrating infor-
business ecosystems (Nachira, Dini, Nicolai, Le Louarn, & Rivera Lèon, mation and knowledge can thus be considered a core aspect of any
2007) much more relevant and has provided the venue for the smart city or smart tourism destination (Su, Li, & Fu, 2011). Despite
emergence of the new concept of the 'smart city' (Giffinger et al., this, academic research has rarely examined or discussed how this
2007). Based on this strand of research, the idea of tourism destina- process can occur and how it can be assessed, measured and
tions as digital business ecosystems (Baggio & Del Chiappa, 2014a) in predicted (Baggio & Cooper, 2010). This paper uses and mixes
search of strategies to become smarter (Buhalis & Amaranggana, epidemic diffusion models and other network analytic methods,
2014) is rapidly emerging in the literature. The digital revolution and applying them to the case of three Italian tourism destinations and
the convergence of ICTs have been igniting the development of new
considering the enabling role that ICTs can exert in this process
communication grids, thus challenging the traditional technological
(Roche et al., 2012). The aims are twofold. First, the paper attempts
scenarios, rendering smart cities and smart tourism destinations the
to at establish the extent to which technological association has
basis for urban and tourism competitiveness (Batty et al., 2012;
affected the structural configuration of the tourism system. Sec-
ond, the paper examines the nature of networks and how their
n
analysis can contribute to understanding the processes of knowl-
Corresponding author. Tel.: þ 39 0789642184.
E-mail addresses: gdelchiappa@uniss.it (G. Del Chiappa),
edge transfer among stakeholders. To this end, the paper seeks
rodolfo.baggio@unibocconi.it (R. Baggio). to extend the analysis discussed in the preliminary work by

http://dx.doi.org/10.1016/j.jdmm.2015.02.001
2212-571X/& 2015 Elsevier Ltd. All rights reserved.
146 G. Del Chiappa, R. Baggio / Journal of Destination Marketing & Management 4 (2015) 145–150

Baggio and Del Chiappa (2014b) (presented at ENTER2014, 21st tourism competitiveness (Otto & Ritchie, 1996; Argote & Ingram,
International Conference on Information Technology and Travel & 2000; Komninos, 2008). In such a context, ICTs, information
Tourism, January 21–24, 2014 – Dublin) in order to show and systems, and social media can be considered to be important
estimate, by simulation, how an increase in the virtual connectiv- coordination mechanisms (Bregoli & Del Chiappa, 2013) that allow
ity improves the diffusion process within a tourism destination. information and knowledge to flow more easily through the
Specifically, the study employs a spectral analysis of the networks destination, more contextual data to be transmitted, and opinions
and uses it to assess the extent to which the digital ecosystem is to be shared (Breukel & Go, 2009). Moreover, the idea that ICTs are
able to speed up the diffusion process. A simulation shows how among the factors that may influence knowledge sharing the most
important the effect of the digital component is on the whole is well established in the strategic management literature (Yang,
ecosystem behavior. 2010). This view is coherent with what Buhalis and Amaranggana
(2014, p. 557) have recently noted when stating that 'bringing
smartness into tourism destinations requires dynamically inter-
2. Theoretical background connecting stakeholders through a technological platform on
which information relating to tourism activities could be
A smart city can be defined as 'a city in which ICT is merged exchanged instantly'. The top priorities of any smart tourisms
with traditional infrastructures, coordinated and integrated using destinations can be analyzed by adopting a demand-side or a
new digital technologies' (Batty, Fosca, Bazzani, & Ouzounis, 2012); supply-side perspective. That means enhancing the tourist's travel
its main goals are 'developing a new understanding of urban experience, providing intelligent platforms to gather and distri-
problems, effective and feasible way too coordinate urban tech- bute information among local stakeholders (Nam and Pardo, 2011),
nologies; models and methods for using urban data across spatial facilitating the efficient and effective allocation of tourism
and temporal scales; developing new technologies for commu- resources, and integrating tourism suppliers to ensure that the
nication and dissemination; developing new forms of urban benefits of tourism are equitably distributed among the local
governance and organization; defining critical problems relating society (Buhalis and Amaranggana, 2014). To sum up, and based
to cities, transport, and energy; and identifying risk, uncertainty on Edvinsson's (2006) concept of learning city, it can be argued
and hazards in the smart city' (Batty, Fosca, et al., 2012). According that smart tourisms destination should purposefully be designed
to Komninos, Pallot, and Schaffers (2013) the main pillars of and managed with the objective of encouraging the nurturing of
smartness for any city are human capital, infrastructure, and knowledge (Roche & Rajabifard, 2012), thus contributing to the
information (Komninos et al., 2013). Similarly, Nam and Pardo shaping and operation of an open innovation ecosystem (Schaffers
(2011) consider technology, people, and institution to be being et al., 2011). In other words, a smart tourism destination can be
pivotal factors for smart cities. Broadly speaking, smart cities are considered to be a knowledge-based destination, where ICTs, the
cities well performing in the following six aspects: smart economy, Internet of Things, Cloud Computing and end-user internet service
smart people, smart mobility, smart environment, smart living and systems (Buhalis & Amarangana, 2013) are used to provide
smart governance (Giffinger et al., 2007; Lombardi, Giordano, instruments, platforms (Toppela, 2010) and systems (Morelli et
Farouh, & Yousef, 2011). In particular, the latter requires a al., 2013) to make knowledge and information accessible to all the
thorough consideration of stakeholder participation in decision- stakeholders in a systematic and efficient way, and to make
making, public and social services, transparency, and political available mechanisms that allow them to participate as much as
strategies and perspectives (Giffinger et al., 2007). In the last few possible in the innovation process (Racherla, Hu, & Hyun, 2008). In
years, the idea of ICTs and social media as tools that are able to line with this perspective, it has recently been argued that social
play an important role in the destination-governance processes media can 'facilitate the transformation of the stakeholders' tacit
and in the processes of stakeholder' involvement and engage- knowledge into an explicit codified knowledge, which can be
ment has been attracting huge attention from both the industry stored, shared, and consequently combined with relevant knowl-
and academia (e.g. Fuchs, 2006; Munar, 2012; Presenza, Micera, edge to ultimately enable better decision making' (Sigala &
Splendiani, & Del Chiappa, 2014; Sigala and Marinidis, 2012), thus Marinidis, 2012). In addition, Funilkul and Chutimaskul (2009)
generating the concept of 'e-governance' or 'e-democracy' argue that the Web has become the medium through which users
(Giffinger et al., 2007). According to Nam and Pardo (2011), and stakeholders interact and collaborate, exchange and share
learning and knowledge have central importance for smart cities information and knowledge, and share opinion in attempting to
and smart tourism destinations, with knowledge management converge toward a common vision (Funilkul & Chutimaskul, 2009).
also being one of the main dimensions of the destination govern- Given the still scarce research which that analyzes how the
ance (Ruhanen, Scott, Ritchie, & Tkaczynski, 2010). process of knowledge sharing can be assessed, this paper aims to
The concept of the smart tourism destination arises from that contribute to filling this gap by applying and mixing epidemic
of smart city. Actually, the concept itself may be considered still to diffusions models and other approaches to network analysis in the
be emerging, and the work of conceptualizing and defining it still cases of three Italian tourism destinations.
in progress. In applying the concept of the digital business
ecosystem (Nachira, 2002) to the tourism sector, Baggio and Del
Chiappa (2014a) defined a tourism destination as a networked 3. Methods
system of stakeholders delivering services to tourists, comple-
mented by a technological infrastructure aimed at creating a The ecosystems examined in this study are those of the Italian
digital environment which supports cooperation, knowledge shar- destinations of Elba, Gallura, and Livigno. These are three well-
ing, and open innovation. In such a context, the physical and known destinations. Elba is an island off the coast of Tuscany
virtual components are strongly structurally coupled and co- (central Italy), Gallura-Costa Smeralda is the north-western region
evolve to form a single system, implying that all modifications, of Sardinia and Livigno is a mountain district in northern Italy,
changes or perturbations originating in any one of them rapidly close to the Swiss border. The destinations are quite typical. Elba
propagate to the whole system (Baggio & Del Chiappa, 2014a). and Gallura are marine areas, while Livigno is an Alpine zone. Each
Tourism researchers concur that effective and efficient information destination, for the purpose of this study, is considered bounded
and knowledge exchange, sharing, and development among all the by its respective administrative borders. The size of the three
stakeholders involved within a destination network is crucial for destination, in terms of tourism firms operating, is similar, about
G. Del Chiappa, R. Baggio / Journal of Destination Marketing & Management 4 (2015) 145–150 147

one thousand companies, while their tourism intensity is also (R) from infection through acquiring some form of immunity or
similar. They receive about half a million visitors per year, showing simply become susceptible again. The infection can represent the
strong seasonality. The ecosystem networks considered have been transfer and the acceptance of an idea or a message. For information,
broadly described elsewhere (Baggio & Del Chiappa, 2014a). For all knowledge, or opinions, the most suitable models are those that
the systems we consider the whole network and the two subnet- consider S and I individuals. A first one (simple) is termed an SI
works formed by the real firms and the one made of their virtual model. It theorizes that susceptible individuals, when exposed to a
representations (websites). The main characteristics are reported piece of information accept it and become infected. They remain in
in Table 1. that state until the end of the process. A second, more elaborate
For all destinations the networks of core tourism stakeholders model is the SIS model. Here individuals, once they have accepted
(accommodation, travel agencies, restaurants, associations, consortia what has been transmitted, have a probability to forget, which can
etc) were assembled from lists provided by the local tourism boards mimic the case in which information becomes uninteresting or
together with those formed by their websites. In these networks, the obsolete, or some other event can induce a change in a previously
links between the different actors were identified following the accepted opinion. This model has a well-known threshold τC which
methods extensively described in Baggio, Scott and Cooper (2010). In depends on the (average) capacity of individuals to infect others. The
short, connections due to commercial agreements, co-ownership, infection process ends when the infectivity τ is less than τC. All these
partnerships, membership of associations or consortia were identified processes obviously also depend on the number and the distribution
by consulting publicly available sources (listings, management board of the relationships existing in the population.
compositions, catalogs of travel agencies, marketing leaflets and Another proposal for understanding the spreading of opinions
brochures, official corporate records, etc). All data were validated is to treat consensus as a peculiar form of synchronization, a
through the use of in-depth interviews with knowledgeable informants phenomenon which has been very well studied in different
(comprising directors of tourism boards, directors of associations, and contexts by means of simple and effective models. The most
tourism consultants). popular is that of Kuramoto (1984). Here, the elements of a system
It is straightforward to think that there is a qualitative difference in are thought of as collection of oscillators coupled to each other.
the links between real and virtual elements of the network and that, Each oscillator has an intrinsic frequency and a characteristic
where information diffusion is concerned, this translates into a phase that might be seen as representing the individual's opinion.
difference in transmission speed. To render this difference, a weighted Linkages between individuals are given a value which constitutes a
version of the networks was prepared in which we assign the value coupling between the oscillators. Here too it is shown that when
1 was assigned to a link between two real nodes, 2 to a link between the coupling K is greater than a critical coupling KC, which depends
a real and a virtual node and 3 to a link between two virtual nodes, in on the system configuration and characteristics, the whole system
some way translating (even if arbitrarily) the different effort levels in synchronizes and all elements oscillate with the same phase, that
building and maintaining these connections. is: a general consensus is reached and opinions are aligned
Two works by Baggio and Del Chiappa (2014a, b) have demon- (Arenas, Díaz-Guilera, Kurths, Moreno, & Zhou, 2008; Pluchino,
strated the strong structural coupling of the real and virtual Latora, & Rapisarda, 2005).
components in the digital tourism ecosystems. This coupling, as
noted in the literature (e.g. Castellano, Fortunato, & Loreto, 2009),
3.2. Elementary spectral graph theory
has important effects on many dynamic processes and alters the
behavior of the ecosystem with respect to that of its components
Spectral graph theory is a branch of algebraic graph theory that
in ways that cannot be simply derived from the composition of the
studies graph properties such as connectivity, centrality, and
two sub-networks. This is to be expected when dealing with a
clustering through the use of the methods of matrix analysis.
complex system, and affects two issues: the structural integration
Moreover, spectral graph theory has proved quite effective for the
of the real and virtual components, and the diffusion and syn-
investigation of network dynamic processes such as epidemic
chronization of opinions. The methods used belong to the class of
diffusion or synchronization (Van Mieghem, 2010).
spectral methods. The rest of this section discusses briefly the
Let us consider an undirected network. Usually it is represented
methodological basis for this analysis.
by a geometric abstract object called a graph, which is made of
points (nodes, vertices) and lines connecting them (links, edges).
3.1. Knowledge diffusion and opinion synchronization More formally a graph is a pair G¼(V,E), where V is the set of
vertices and E is the set of links: ordered couples (Va, Vb) of
Spreading a piece of information is a process that has been studied vertices. Such a graph can also be identified by a symmetric n  n
in innumerable ways. For our cases we can use an epidemiological matrix AG, called adjacency matrix, whose elements are defined as
modelling approach (Danon et al., 2011; López-Pintado, 2008). Such (  
w if i; j A E
models consider the individuals in a group (population) as susceptible AG ði; jÞ ¼ ð1Þ
0 otherwise
(S) to an infection. They could then be infected (I) and finally recover
where w is the weight associated to the link. For an unweighted
Table 1 network, w¼ 1.
Main characteristics of the destination networks.
For a square symmetric matrix, given a non-null vector x, if it is
Destination Type Nodes Edges Density possible to find a scalar λ such that Ax ¼λx; λ is called eigenvalue for
A and x is the corresponding eigenvector (Lang, 1970). The
Elba Ecosystem 1156 2712 0.0041 eigenvalue satisfies the equation: (A λI)x¼ 0, which has nontrivial
Real 713 1636 0.0064
solutions if and only if det(A  λI)¼ 0. The latter is known as the
Virtual 443 494 0.0050
Gallura Ecosystem 3712 9718 0.0014 characteristic equation of A (and the left member characteristic
Real 2235 6077 0.0024 polynomial). There exist exactly n roots (not necessarily distinct)
Virtual 1477 2165 0.0020 for this polynomial; therefore an n  n matrix has n eigenvalues
Livigno Ecosystem 751 2740 0.0097 and n associated eigenvectors (each one having n elements). If the
Real 468 1388 0.0127
Virtual 283 566 0.0142
matrix is real (i.e. all its elements are real numbers) and symmetric
(undirected network), its n eigenvalues λ1, λ2, …, λn are the real
148 G. Del Chiappa, R. Baggio / Journal of Destination Marketing & Management 4 (2015) 145–150

roots of the characteristic polynomial. The ordered set of the Table 3


eigenvalues for A is called the spectrum of A: sp(A) ¼λ1, λ2, …, λn The inverse spectral radius for the simulations performed.
with λ1 Zλ2 Z, …,Z λn. The largest eigenvalue λn (also principal or
Simulation Destination Weighted ecosystem Ecosystem
dominant) is termed the spectral radius.
The eigenvalues and eigenvectors of a graph are closely related to its Baseline (Table 2) Elba 0.0292 0.0430
structural characteristics: they summarize its topology (Restrepo, Ott, & Gallura 0.0167 0.0433
Hunt, 2006). More precisely, eigenvalues contain global information Livigno 0.0194 0.0354
Base þ 5% links Elba 0.0291 0.0429
about the network, while eigenvectors contain local (nodal) informa- Gallura 0.0167 0.0432
tion. This is the case, for example, of a number of nodal metrics such as Livigno 0.0193 0.0352
eigenvector centrality (Bonacich, 1987) and the Katz centrality index Base þ 15% links Elba 0.0288 0.0427
(Katz, 1953) or PageRank (Brin & Page, 1998), all of which can be Gallura 0.0167 0.0430
Livigno 0.0192 0.0347
calculated from the principal (largest) eigenvector of the adjacency
Base þ 30% links Elba 0.0285 0.0424
matrix. The spectral analysis of the adjacency matrix of a network can Gallura 0.0166 0.0424
be a useful, and in many cases computationally more efficient, method Livigno 0.0189 0.0338
to derive its main parameters. Among the many interesting outcomes
of the wide body of studies in spectral graph theory, this study uses
one important result. The spectral radius, the largest (principal) component is augmented. Three simulation runs were performed,
eigenvalue of the adjacency matrix λN, plays a crucial role in controlling in each a certain proportion of links between the virtual elements
the dynamical processes described above: diffusion and synchroniza- and between the virtual and the real ones were (randomly) added.
tion. In fact, it is found that the critical threshold for a SIS epidemic In the simulations, both the simple (unweighted) and the
diffusion τ for an undirected graph is τ¼1/λN (Chakrabarti, Wang, weighted ecosystems were considered, to which 5%, 15% and 30%
Wang, Leskovec, & Faloutsos, 2008). As far as synchronization is of the links existing were added respectively. Due to the stochastic
concerned, a similar result holds for the critical coupling that turns nature of the simulations, all the results reported here are
out to be KC p1/λN (Restrepo, Ott, & Hunt, 2005). averages over 10 realizations. Table 3 reports the results.
No matter how the spreading of opinion and the establishment These results show the impact of the virtual component on the
of a consensus is modeled, the largest eigenvalue of the adjacency whole ecosystem. As a reference, for a 30% increase in connectiv-
matrix shows the properties of these processes on a complex ity, the average improvement is of 2% for the weighted network
network: the higher its value the lower their critical thresholds. In and 3% for the unweighted case. This may mean an increase in the
other words, the higher its value, the easier to inform and convince efficiency of the diffusion process of up to 40% (number of infected
the actors in a complex social network. nodes or speed of diffusion), depending on the actual topology of
the network (e.g. Chakrabarti et al., 2008). Also, the results suggest
that a more extensive and intense employment of virtual objects
can have beneficial effects from a structural point of view, besides
4. Results and discussion the other considerations on the favorable effects digital technol-
ogies have on the functioning and the competitiveness of a
The inverse spectral radius (1/λN) calculated for all the networks tourism destination (Law, Buhalis, & Cobanoglu, In press;
examined is shown in Table 2. This value gives a reliable indication of Standing, Tang-Taye, & Boyer, 2014).
the goodness and the efficiency of the diffusion process.
The values for the whole ecosystems are lower than those of
their components and the minimum is attained by the (more 5. Conclusions
realistic) model given by the weighted networks. This confirms the
idea, already put forward, that the combination of real and virtual The scientific debate on smart cities and smart tourism desti-
elements in a single well-integrated system provides a more nations has been growing over the last decade. Nevertheless, the
efficient basis for the spreading of ideas or the reaching of a work of conceptualizing and defining what a smart tourism
common agreement on some issue. destination is, and how it works, can be considered to be still in
The virtual component of a tourism destination, as noted above progress. This is particularly evident when the process of informa-
(Buhalis & Amaranggana, 2014), is a crucial element for an efficient tion and knowledge transfer is considered. This paper aims to at
functioning of a smart destination. If we accept this idea, then, it is contribute to deepening the scientific debate around this topic.
important to verify the contribution of this component and check In particular, this study confirms that a strong structural
whether its strengthening can improve the efficiency of the whole cohesion between the real and the virtual components of a
ecosystem. The findings of this study, combined with those destination can and does exist, thus suggesting that knowledge-
discussed in previous research (Baggio & Del Chiappa, 2014a, b), based destination management studies should consider both
strongly underline the crucial and central role the technological components of the system. The fact that the real and the virtual
manifestations of tourism firms within a tourism destination play aspects need to be considered together when analyzing a business
in shaping the characteristics of the tourism system. ecosystem is not new. However, only recently has the concept of
Given the complexity of the systems, it is impossible simply to digital business ecosystem been formally examined in a tourism
add-up new contributions; it is necessary therefore to proceed context, and more specifically in that of the tourism destination. In
with a simulation in which the connectivity of the virtual this paper, a digital business ecosystem is considered to be an
intrinsic part of the more recent concept of smart tourism
Table 2
destination. In such complex systems, the diffusion of information
The inverse spectral radius for all the networks examined.
and knowledge is undoubtedly an important basis for innovation
Destination Weighted ecosystem Ecosystem Real Virtual and consensus development. This study, with the aid of well-
established graph theoretical methods, has shown how a smart
Elba 0.0292 0.0430 0.0434 0.0899 ecosystem is more efficient in this regard.
Gallura 0.0167 0.0433 0.0437 0.0503
Livigno 0.0194 0.0354 0.0428 0.0776
An addition to the theoretical interest, these results are
important for anyone interested in the life and the development
G. Del Chiappa, R. Baggio / Journal of Destination Marketing & Management 4 (2015) 145–150 149

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