Reputation management strategies are vital for Small and Medium Enterprises (SMEs), the backbone of South Africa’s economy, contributing more than half of the country’s GDP and employing the majority of its workforce. Nowhere is their role more visible than in tourism, a sector that attracts both domestic and international visitors. Yet, despite their importance, many SMEs struggle with sustainability and competitiveness. The DaVinci Institute’s alumnus, Dr Phumelela Ezrah Dhlomo’s doctoral research explored how reputation management can help tourism SMEs in Gauteng achieve a sustainable competitive advantage.
Research Problem
While large corporations benefit from well-established reputation management strategies, smaller businesses often lack the resources and knowledge to leverage reputation as a strategic asset. Previous research has shown that a strong reputation can increase income and customer loyalty, but little is known about its role in SMEs, particularly in tourism.
Aim and Objectives
The study aimed to investigate the influence of reputation management in creating a sustainable competitive advantage for tourism SMEs in Gauteng. It did so by examining constructs such as entrepreneurship, service quality, resources and capabilities, organisational identity, stakeholder management, and value proposition. The research also assessed how these factors impact both competitive advantage and business performance.
Theoretical Framework
The study drew on several theories to frame its analysis:
- Resource-Based View (RBV) – competitive edge from unique internal resources.
- Gap Model of Service Quality – linking service delivery to customer expectations.
- Organisational Identity Dynamics – how identity shapes reputation.
- Stakeholder View Theory – managing diverse stakeholder relationships.
- Value Proposition Theory – delivering unique customer value.
- Porter’s Five Forces – industry competitiveness.
Methodology
A quantitative survey was conducted among 314 SME owners and managers in the Gauteng tourism sector. Respondents rated their firms’ practices across key reputation management constructs. Data was analysed to test hypotheses on the link between reputation and sustainable competitive advantage.
Key Findings
- Reputation management significantly influences competitive advantage and performance. SMEs with strong reputations enjoyed higher trust, customer loyalty, and resilience in competitive markets.
- Service quality and entrepreneurship emerged as critical drivers of reputation and competitiveness.
- Resources and capabilities, particularly human capital and innovation, reinforce sustainability.
- Stakeholder management proved essential, as SMEs rely heavily on community, customer, and partner trust.
- Value proposition clarity distinguished successful SMEs from weaker competitors.
Limitations
The study was limited to Gauteng and used a quantitative-only approach, which restricted deeper qualitative insights. It also relied on a single regional dataset, meaning findings may not generalise to all provinces.
Recommendations
- SMEs should invest in formal reputation management strategies to strengthen trust and market visibility.
- Policymakers and industry bodies should create support programmes that train SME owners in branding, stakeholder engagement, and service quality.
- Future research should adopt mixed methods and expand to other regions for comparative insights.
Conclusion
Reputation is more than just image; it is a strategic resource that can enable tourism SMEs to achieve long-term survival and growth. In an increasingly competitive sector, Gauteng’s SMEs must view reputation management as a deliberate business strategy, not an afterthought.
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