Resource Development to Create Competitive Advantage Sustainable in Banjaroyo Tourism Village

Resource Development to Create Competitive Advantage Sustainable in Banjaroyo Tourism Village

Andrea Gideon; Margaretha Ardhanari; Lena Ellitan

Widya Mandala Catholic University of Surabaya

DOI: https://dx.doi.org/10.47772/IJRISS.2024.8080339

Received: 23 August 2024; Accepted: 29 August 2024; Published: 24 September 2024

ABSTRACT

The acceleration of development between regions in order to equalize welfare continues to be carried out by the government. One of the sectors that is able to increase the equality of welfare is the tourism sector. The tourism sector continues to be developed, especially those based on community empowerment, one of which is the formation of many tourist villages. Tourist villages are one of the strengths to empower the community while also being able to improve their welfare. Banjaroyo Tourism Village is one of the oldest villages in Kulonprogo Regency. However, according to data released by the Ministry of Tourism and Creative Economy, the number of visits to this tourist village is ranked third in 2023. So it is necessary to explore the potential and resources it has to create competitive advantages. The purpose of this study is to explore the potential resources owned by tourist villages in an effort to create competitive advantages compared to other tourist villages. The large number of tourist villages means that each manager or administrator of a tourist village must be able to find valuable resources, rare resources, resources that are difficult to imitate, resources that are difficult to replace and resources that can be managed in order to form sustainable competitive advantages. This competitive advantage is what can differentiate one tourist village from another. In addition, with the resources it has, Banjaroyo Tourism Village is able to form and create sustainable competitive advantages compared to other tourism villages. The creation of this competitive advantage is able to increase the number of tourist visits and also improve and equalize community welfare.

Keywords: Tourism; tourist village; resources; competitive advantage

INTRODUCTION

Tourism is one of the interesting sectors to develop because it has a chain effect, from economic impact to social impact. Even the government has set tourism development as one of its priorities. Acceleration of tourism development in the regions can reduce the gap between regions and accelerate equal access to infrastructure and the economy. The tourism industry itself is one of the top five contributors to the country’s foreign exchange and opens up high employment opportunities. Development and development of the tourism sector is heading towards rural-based tourism, where this tourism utilizes all potential and highlights the local wisdom of rural communities to be developed.

The development and development of villages as tourist destinations is a development model that provides the greatest opportunity for rural communities to participate in tourism development. Important components in tourist villages are accommodation (Dewi, Fandeli, Baiquni, 2013) and local communities (Wearing, 2001).

This is in line with what is the goalSustainable Development Goal’s (SDG’s) that Indonesia has agreed to. Sustainable development or better known as SDG’s is a global action plan agreed to by world leaders, including Indonesia, to end poverty, reduce inequality and protect the environment. One of the goals of the SDG’s program is sustainable development where development that maintains the continuous improvement of people’s economic welfare, development that also maintains the sustainability of people’s social life, development that emphasizes the quality of the environment and development that ensures justice and the implementation of governance that is able to maintain the improvement of the quality of life from generation to generation.

The indicator of a sustainable development program in a village is to look at village development index. Based on the Village Development Index (IDM), the status of village independence and progress is explained with a classification that is expected to facilitate understanding of the current situation and condition of the village, as well as how policy steps must be developed to support improving village life to be more advanced and independent.

As a village located very close to the Super Priority Tourism Area of Borobudur Temple, Banjaroyo Village can take advantage of this opportunity to develop its tourism sector. Geographically, Banjaroyo Village is located on the slopes of the Menoreh hills which are included in the Kalibawang District, Kulon Progo Regency, Special Region of Yogyakarta. It is located on a new tourist route, namely Yogyakarta – Borobudur, 8 kilometers south of Borobudur Temple and 24 kilometers from Yogyakarta City.

Banjaroyo Village has a population that is mostly plantation farmers and palm sap tappers (the basic ingredient for making Javanese sugar). One of its superior products is Durian Menoreh, whose quality has been recognized nationally with the Decree of the Minister of Agriculture No. 317/KPTS/SR 120/5/2008. Tourist attractions owned by Banjaroyo Village include the Ancol Dam in the south which is the upstream of the Mataram Canal. In addition, there is the Progo River which is usually used for outdoor activities. There is also the Kyai Krapyak Tomb and the Sentono Tomb for religious tourism for Muslims. While religious tourism for Catholics is the Maria Cave in Sendangsono.

The diversity of tourist attractions owned by Banjaroyo tourist village makes this tourist village have the ability to create competitive advantages compared to other tourist villages. In addition, the geographical conditions that include the location of the village and also the natural landscape owned by Banjaroyo Village are able to make this village unique compared to other tourist villages. In an effort to create competitive advantages, Banjaroyo Tourist Village has sufficient basic capital to compete with other tourist villages

The basic capital in the form of potential resources is intended to have value or valuable resources for Banjaroyo Tourism Village. In addition, there are also resources that are rarely owned by other tourism villages. This means that only a few tourism villages have resources similar to those owned by Banjaroyo Tourism Village. There are also resources that are difficult to imitate, meaning that these resources can be owned by other tourism villages but are very difficult to imitate. Resources that are difficult to imitate are certainly an advantage and can be a characteristic of Banjaroyo Tourism Village. Furthermore, there are resources that cannot be replaced, meaning that they are the only ones owned or located in Banjaroyo Tourism Village and are not owned by other tourism villages. And finally, resources that can be managed with the aim of contributing to the development of tourism in Banjaroyo Village. These five types of resources are one of the requirements for Banjaroyo Tourism Village to have a sustainable competitive advantage that distinguishes it from other tourism villages. In the end, the goal is to attract tourists to visit and experience a different experience compared to visiting other tourism villages. The large number of tourists visiting is certainly expected to have an economic impact on the local community of Banjaroyo Village.

This study aims to examine sustainable competitive advantage by looking at valuable resources, rare resources, resources that are difficult to imitate, resources that cannot be replaced and resources that can be managed in Banjaroyo Tourism Village. The resource-based perspective is applied in this study to find an understanding of the management of the tourism village towards valuable, rare, difficult to imitate and manageable resources and the development of human resources as a determinant of sustainable competitive advantage. The exploration of resources as capital for sustainable competitive advantage to increase the empowerment of local communities so that the economy and welfare of the Banjaroyo village community increases and is evenly distributed.

LITERATURE REVIEW

Resource Based View

RBV is an analytical approach resources and capabilities internal company in Developing a company’s competitive strategy. The RBV concept itself is based on two fundamental assumptions regarding the company’s controllable resources and capabilities. First, resources and capabilities are not evenly distributed among companies. The second assumption is that some resources and capabilities that differentiate between companies can be durable (sustainable) because it would be very expensive for a company that does not have these resources and capabilities to develop or acquire them (Bachtiar, et al, 2022)

Ireland, Hoskisson and Hitt (2011) group all resources intended by Barney as tangible resources, namely financial resources, organizational resources, physical resources, technological resources. Meanwhile, intangible resources are resources that are less visible and more difficult for competitors to understand, imitate and substitute. Intangible resources are the main source of core competencies of an organization. Intangible resources are divided into 3 categories, namely Human Resources, Innovation Resources and Reputational Resources.

Dynamic Capabilities

The concept of dynamic capabilities was initially developed based on the RBV concept. The RBV concept assumes that a company can be conceptualized as a collection of resources, where these resources are distributed heterogeneously across all parts of the company and these differences can persist over time. Furthermore, in line with increasingly dynamic global conditions, RBV is not yet sufficient to explain how a company can have a third competitive advantage in facing rapidly changing and unpredictable situations, where competitive measures have shifted, requiring companies to develop their dynamic capabilities. Teece in Darusman and Wijaya (2020) re-explains that for analytical purposes, dynamic capabilities consist of the capacity to sense and shape opportunities and threats (sensing); the capacity to seize existing opportunities (seizing) and the capacity to maintain competitiveness through increasing, combining, protecting and reconfiguring business assets, both tangible and intangible.

Competitive Advantage

Competitive advantage of tourism emphasizes the capacity or ability to optimize the value of tourism attraction through quality, innovation, service in organizing tourism in a destination or country. When a business entity is able to offer more value or advantages to consumers compared to competitors, it will result in competitive advantage (Kotler et al, 2005, Porter, 2008). Competitive advantage is achieved in activities in an industry or market through the creation of economic value competitively (Barney, 2010).

Sustainable Competitive Advantage

VRIO Model

Collis and Montgomery (1999) argue that RBV does not replace previous approaches but rather combines them. RBV combines internal analysis of phenomena within a company with external analysis of the industry and competitive environment. RBV views companies as very different collections of fiscal and intangible assets and capabilities.

Research methods

The approach used in this study is to use a qualitative approach. A qualitative approach is a research paradigm to describe events, people’s behavior or a situation in a particular place in detail and in depth in narrative form (Satori and Komariah, 2012). The paradigm used in this study is an interpretive paradigm with a research design using case studies. A case study is an exploration of a system, which is bound or a case/various cases that from time to time through in-depth data collection and involves various sources of rich information in a context (Assyakurrohim et al, 2023).

The type of data used in this study is narrative and descriptive and explanation of data from direct informants, both verbally and written document data, the behavior of subjects observed in the field (tourism village) also becomes data in collecting the results of this study. The types of data obtained are in the form of audio and video recordings, field notes, documentation and photos. While the data collection procedure is in the form of observation, interviews, documentation studies. Observations are carried out by researchers before determine the topic or theme that will be used as a case study for his research. Observation took 2 weeks by living and interacting directly with the local community in the Banjaroyo tourist village. Furthermore, two stages of interviews were conducted, where in the first stage, interviews were conducted with key informants to explore the advantages found in the Banjaroyo tourist village. The main informant is the founder and administrator of the tourist village. Continued interviews with the next informant using the informant determination technique are snowball sampling.

The interview was conducted over a period of two weeks. The second stage of the interview process was conducted over two weeks by digging up information from the main informant and also other informants as administrators of other tourist villages and also the Village Head and his staff.

During the interview process, a search was also carried out for documentation sources in the form of establishment documents, the Banjaroyo Village Medium-Term Development Plan (RPJM) documents, and photographs showing the condition of the Banjaroyo tourist village.

Data testing in this study was conducted in three stages, the first is the description stage, where the researcher describes what was seen, heard, felt and asked at the location and to the informant. The second is the reduction stage, where the researcher reduces and focuses on the problem by sorting important data and then grouping it into categories that are determined as the focus of the research. And finally, the third is the selection stage where the researcher describes the focus of the research that has been determined in more detail so as to find a theme by constructing the data obtained into a new building of knowledge or science.

RESULTS AND DISCUSSION

Banjaroyo Tourism Village Resources

The revision of the VRIN concept gave rise to the VRIO concept in the perspective of resources. Unique resources in the VRIN concept are realized that they will not automatically make an organization have high performance. These resources must be managed well (Well Organized) in order to achieve competitive advantage (VRIO). In the VRIO concept, irreplaceable resources are combined with resources that are difficult to imitate while other resources are the organization’s ability to manage well (O) VRI resources so that the organization can have high performance above the average competitor.

1) Valuable Resources

The revision of the VRIN concept gave rise to the VRIO concept in the perspective of resources. Unique resources in the VRIN concept are realized that they will not automatically make an organization have high performance. These resources must be managed well (Well Organized) in order to achieve competitive advantage (VRIO). In the VRIO concept, irreplaceable resources are combined with resources that are difficult to imitate while other resources are the organization’s ability to manage well (O) VRI resources so that the organization can have high performance above the average competitor. Research by Amin (2017) in the Sanankerto Tourism Village also explains that. legal status is a valuable resource, a rare resource, a resource that is difficult to imitate and a resource that is difficult to replace. Legal status is related to the certainty of an organization or community having a clear status that is recognized by government authorities.

Next, related to the community network which is also one of the valuable resources for the organization. The ability to communicate and collaborate between various parties that contribute to the existence and development of tourist villages is an important factor for its long-term development. Communication skills can be carried out to the government related to tourism area development plans at the district, provincial and central government levels.

Research conducted by Hirmansah (2024) related to competitive strategies with the RBV approach in the Ketambe tourist village explains that the coordination and information system is a valuable resource and can also be managed well. The coordination and information system in the Ketambe Tourist Village is a valuable resource because it can improve the performance of the organization.

2) Scarce Resources

The resources included in the rare category are plantation products (horticulture) in the form of Durian Menoreh. The results of this durian plantation are better known as Durian Menoreh which is also a fruit that is used as an icon for Banjaroyo Tourism Village. Durian fruit is one of the endemic fruits where this fruit will produce good quality if planted in its original area. Durian Menoreh is used as an icon to introduce the existence of Banjaroyo Tourism Village because this durian only grows in Banjaroyo village.

These findings are also in line with research conducted by Amin (2017) with the research object in the Sanankerto Tourism Village where bamboo is one of the valuable resources, as well as being rare resources, resources that are difficult to imitate, resources that are difficult to replace and resources that can be managed.

3) Resources that are difficult to imitate

This study identifies resources that are difficult to imitate in Banjaroyo Tourism Village. The resources in question are social capital (social capital) and geographical conditions. Resources in the form of social capital refer to the nature, characteristics and local wisdom possessed by the Banjaroyo Tourism Village community. The nature, character and local wisdom referred to are the existence of very high mutual cooperation which is often aimed at every activity related to tourism or community activities in their daily lives. The results of research conducted by Bachtiar, et al (2022) related to the VUCA Era Tourism Development Strategy with the VRIO Approach explain that the hospitality of local residents is one of the resources in the categoryserviceswhich is the strength of Kuningan Regency in West Java.

In addition, geographical conditions are a competitive advantage that cannot be imitated. This is in line with the results of research conducted by Amin (2017) where geographical location is a valuable, rare, inimitable, irreplaceable and manageable resource. The results of research conducted by Bachtiar et al (2022) also found that geographical conditions are one of the strengths possessed by Kuningan Regency. The geographical conditions in question are that Kuningan Regency has a strategic location. This is in line with the findings in this study where geographical conditions are one of the resources that are difficult to imitate because each region certainly has different geographical conditions.

4) Resources that are difficult to replace

This study identified several resources that are irreplaceable resources in Banjaroyo Tourism Village. These resources are Altruism. This altruism is indeed something that is difficult to replace. This trait grows and is attached to individuals who do have more concern for the good of others. In Banjaroyo Tourism Village, this altruism trait is found in the management of the tourist village, they have concern for others in this case the Banjaroyo village community by trying all means to improve the welfare of their community.

The Banjaroyo Tourism Village Management does all its activities not for the purpose of gaining financial gain for the benefit of themselves or a group of people, but the management of this tourism village works and carries out all its activities because of their concern for improving the welfare of the Banjaroyo village community. In addition, they also want to participate in efforts to empower the Banjaroyo village community so that they are independent and can meet their living needs from the efforts carried out in Banjaroyo village, namely through tourism activities that have been attempted by the Banjaroyo Tourism Village Management. The concern of the Banjaroyo Tourism Village Management is without expecting any reward or financial gain, they do everything based on their love and desire to improve the welfare of the Banjaroyo village community.

5) Manageable Resources

This study identifies resources that can be managed in Banjaroyo Tourism Village are tourist attractions. These resources can be managed with the aim of producing increased welfare for managers in particular and the Banjaroyo village community in general.

Tourist attractions in Banjaroyo Tourism Village can be distinguished based on their nature, namely natural tourist attractions and artificial tourist attractions. Natural tourist attractions in Banjaroyo Tourism Village such as the Menoreh hills in the north and the Progo River. Both of these tourist attractions already exist naturally, if managed properly, equipped with other supporting facilities such as roads to the tourist location, bathroom facilities and places to urinate and defecate, dining facilities, entertainment and parking areas, and always maintaining cleanliness, then the existence of this tourist attraction will bring benefits to the manager and the community around the tourist attraction.

Meanwhile, artificial tourism is a tourist attraction that is intentionally created or built with the aim of being a place of recreation or other purposes such as irrigation or pilgrimage. The artificial tourist attractions in Banjaroyo Tourism Village are quite diverse, ranging from religious tourism from three religions, namely Gua Maria Sendang Sono for Catholics, Promasan Church for Christians and Kyai Krpayak Tomb for Muslims. In addition to being a place of pilgrimage for religious people, these three places have also shifted as places of religious tourism in Banjaroyo Tourism Village. Furthermore, in Banjaroyo Tourism Village, many reservoirs have also been built, which were initially intended for irrigation in plantation areas, but along the way, these reservoirs have become tourist attractions for the people of Banjaroyo village. Tonegoro Reservoir, Krpayak Reservoir and Ancol Dam is a reservoir building with the purpose of irrigation which is used as a tourist attraction for the community. In addition, the existence of Kampung Durian Pranan is one of the artificial tourist attractions that was deliberately created as a means to introduce Durian Menoreh which is the hallmark of Banajroyo Tourism Village. Kampung Durian Pranan is one of the showcases where visitors can enjoy Durian Menoreh fruit and other varieties of durian in one location.

Sustainable Competitive Advantage of Banjaroyo Tourism Village

All resources owned by Banjaroyo Tourism Village can be a competitive advantage compared to other tourism villages. However, the management of these resources must continue to be improved to maintain the competitive advantage it has. To be able to manage these resources, tourism villages need human resources that are also competitive. The existence of human resources owned by Banjaroyo Village must be able to manage valuable resources, which are rare, which are difficult to imitate, which cannot be replaced and which can be managed to create sustainable competitive advantages. The human resources owned by Banjaroyo Village have several challenges, namely related to the mindset, mentality and also the knowledge and skills of the village community. These three challenges are a common problem for all stakeholders in Banjaroyo Tourism Village, starting from the village government, tourism village administrators, the private sector and universities.

Various challenges related to human resources faced by Banjaroyo Tourism Village, make all parties strive to carry out development and development programs. The government has an obligation to carry out human resource development through the provision of schools and course institutions to facilitate the community to complete their education. In addition, human resource development can be carried out by the government by encouraging the community to go to school and complete twelve years of education or at least graduate from high school. Furthermore, part of the tourism village management to carry out human resource development through various training activities in the form of workshops or comparative studies and even community development is carried out through events that are arts and culture. Community involvement and the community’s ability to continue learning are the keys to the sustainability of the Banjaroyo tourism village.

Image : Resources that Form sustainable competitive advantage in the Banjaroyo Village

CONCLUSIONS AND IMPLICATIONS

Legality and community networks are valuable resources in Banjaroyo Tourism Village. Legality is needed as a form of government recognition of the existence of Banjaroyo Tourism Village. In addition, legality can also show existence as well as branding to officially introduce Banjaroyo’s status as a tourism village. The existence of legal capabilities can also be one of the requirements for accessing funding sources from the government. Meanwhile, community networks include the ability to build communication with all parties related to the existence and sustainability of Banjaroyo Tourism Village. Not only that, the ability to build collaboration between Banjaroyo Tourism Village administrators and various government and private agencies in their efforts to maintain and develop Banjaroyo Tourism Village.

Plantation products (horticulture) in the form of Menoreh Durian fruit are a rare resource in Banjaroyo Tourism Village. Menoreh Durian is perceived as a resource that is not owned by all tourism villages because of the endemic nature of durian fruit. In addition to being a superior product, Menoreh Durian is also used as an icon for Banjaroyo Tourism Village, so that research and development of this endemic plantation product continues to be carried out. Until early 2024, 10 varieties of Durian Menoreh have been discovered

Social Capital and Geographical Conditions are resources that are difficult to imitate in Banjaroyo Tourism Village. The social capital in question is the nature, characteristics and local wisdom possessed by the Banjaroyo village community. The Banjaroyo community is a community that has a high level of friendliness and mutual cooperation. This friendly nature is one of the reasons for the activitieslive inThis was held because at that time, the friendly nature of the Banjaroyo village community was what they could “sell” to attract tourists through the program.live in.Furthermore, geographical conditions are one of the resources that are difficult to imitate in Banjaroyo Tourism Village. Geographical conditions are resources that will not be found exactly the same in other tourism villages. The contour of the Menoreh hills is located in the northern part of Banjaroyo village which is also a tourist area as well as agriculture and plantations. In addition, the Progo River that crosses Banjaroyo village as a source of irrigation apart from the existing artificial reservoirs is also used to create sports and recreational activities. There are also lowlands, where most of the people live and do their work activities. So the geographical conditions of Banjaroyo village are resources that are difficult to imitate exactly.

Altruism is an irreplaceable resource. Altruism is a trait that is willing to do anything for others even if it means making sacrifices. This trait is possessed by a group of people who are currently involved as administrators of Banjaroyo Tourism Village. This trait makes the existence of this tourism village still running until now. The initial goal of establishing Banjaroyo Tourism Village was for the welfare of the community, besides that as a form of self-actualization and also love for their homeland.

Tourist attractions are resources that can be managed in Banjaroyo Tourism Village. The existence of tourist attractions in Banjaroyo village is diverse and can be grouped based on their nature, namely natural and artificial. Natural tourist attractions are the Progo River and Menoreh Hills. While artificial tourist attractions are the Sendang Sono Maria Cave as a place of pilgrimage for Catholics, the Promasan Church as a place of religious tourism for Christians, the Kyai Krpayak Tomb as a place of pilgrimage for Muslims. In addition, there are also Tonegoro Reservoir, Krapyak Reservoir and Ancol Dam whose initial function was as irrigation for agricultural and plantation products but are also used as tourist attractions.

The results of this study can be used as one of the bases for decision making by local governments and governments at the village level related to the empowerment of resources owned by each tourist village. Resources valuable, rare, difficult to imitate, irreplaceable and can be processed to create sustainable competitive advantage between one tourist village and another. In addition, these results can be used by the Banjaroyo tourist village administrators in optimizing their resources to be used as differentiators and create competitive advantages.

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