Entrepreneurial Competencies on Dynamic Capabilities towards Entrepreneur Performance in Sri Lanka’s Community Based Tourism

Abstract

This paper provides an overview of entrepreneurship in Sri Lanka’s Community Based Tourism (CBT). This investigates the impact of entrepreneurial competencies on dynamic capabilities towards homestay entrepreneur performance in community based tourism. Recent researches conducted in the Sri Lankan context revealed that the vast majority of homestay operators are not effective and homestay tourism is not a viable alternative tourism offering in Sri Lanka. However, homestay tourism has been recognised as a key industry for developing entrepreneurs and contribute significantly to the Sri Lankan economy. The principles of Resource Based View (RBV) theory as well as Dynamic Capability View (DCV) theory were used as the basis for the current research. Data were collected from 252 homestay entrepreneurs and analysed using Structural Equation Modelling (SEM). As per the findings, entrepreneurial competencies were crucial for dynamic capability and both are important for entrepreneur performance. The association between entrepreneurial competencies and homestay entrepreneur performance is significantly mediated by dynamic capability. This research will aid in the creation of productive entrepreneurs within the community based tourism sector in Sri Lanka.