ABSTRACT
Contrary to the commonly held view that resource abundance is a prerequisite for business success, Hamel & Prahalad (1993) argue that firms characterised by relatively high levels of resource scarcity often attain higher growth rates and enjoy greater competitive advantage than firms characterised by a relatively high level of resource abundance. Indeed, these influential commentators argue that it is the resource scarcity, combined with a high level of a firm’s aspirations, which drives the firm’s creativity. This view seems to be of utmost importance and relevance to tourism small and medium-sized enterprises (SMEs)1 which face the problem of resource scarcity and which perceive resource scarcity as the major barrier to growth.
