Analyzing Blue Ocean Strategy (BOSS) on the Innovative Performance in Eco-Friendly Tourism Services in Indonesia

Abstract

Research Purposes: The study aims to analyze the relationship between implementation of Blue Ocean Strategy Analysis (BOSS) and innovative performance on eco-friendly tourism services in Indonesia Research Design/ Methodology/ Approach: The sample group of this study is eco-friendly tourism services in Indonesia, which have innovated in various areas. The sample group includes 350 operational manager/ business manager (hotels on the shore line, managers of beaches, tourist parks, and mangrove forests) that are spread over 5 tourism areas in Indonesia that have identified to make environmentally friendly innovations. Findings: This study shows that creating Uncontested Marketspace, making the competition irrelevant, breaking the value cost trade off, and achieving differentiation and low cost have a positive relationship to innovative performance. While creating and capturing new demand do not show any positive relationship to innovative performance in eco-friendly tourism services in Indonesia. Research Limitation/ Implication: Setting a standard on friendly environmental innovation has not become a formal discussion based on the provisions of public policy and not many studies using the Blue Ocean Strategy approach are associated with the performance of green innovations. Practical Implications: Companies that focus on innovative performance will capture the domain of organizational competitive advantage in the long run. This happens because product innovation, service or customer intimacy and innovation of system-process are seen as the most important ways to provide competitive advantage and long-term organizational sustainability through its differentiation. The organization’s ability to develop their product and new services, or customer intimacy and system-process innovation are known as dynamic capability in responding to its innovative performance. Originality/ value: It is hope that Blue Ocean Strategy approach can become a more precise way in assessing the green innovative performance that is capable of producing differentiation while still accommodating in low costs with high value.