MANAGING INNOVATIVE CLUSTER DEVELOPMENT OF TOURISM ENTREPRENEURSHIP: SPECIFICS AND TRENDS

Abstract

The article discusses the contemporary issues related to the specifics of managing the innovative development of cluster entrepreneurship in the tourism sector. High dynamism of the external environment, rapidly growing consumer market demands for the quality of goods and services, intensified competition and a range of other factors urge local governments to make effective management decisions aimed at supporting further development of tourism business clusters that have to rely on compliance and well-reasoned application of methods, principles and functions of strategic management based on modern economic and mathematical modeling toolkit. The study presents the results of research on managing innovative cluster development of tourism entrepreneurship along with providing step-by-step assessment of innovation environment and exploring the sources of possible barriers to transformation processes. In addition, the intensity of transformation dynamics has been measured. The findings suggest an algorithm to run the diagnostics for the sensitivity of tourism companies within integrated clusters to innovative transformations. It is argued that the management framework, with innovative cluster development pattern of tourism entrepreneurship as its structural element, is capable to ensure integrated congruence of interests of all market actors, non-for-profit institutions and consumers, which allows to develop and implement effective policies for tourism and recreational services sector, subject to availability of appropriate management structures, powers and levers of influence. A conclusion is made that the primary function in managing the innovative cluster development of tourism entrepreneurship is the ability to balance the interests of various regional market actors and implement the strategic socioeconomic priorities of the tourism and recreation services sector in the context of sustainable development.