Exploitation Learning as Driver of Performance for Small and Medium Food Tourism Enterprises (SMFTEs)

Abstract

Food tourism plays a vital role in enhancing destination appeal, preserving cultural heritage, and supporting regional economic growth. Small and medium enterprises (SMFTEs) are central to this sector but often face resource limitations that heighten the importance of strong internal capabilities. This study investigates how exploitation learning—defined as the refinement of existing routines and efficiency-focused practices—improves the performance of Small and Medium Food Tourism Enterprises (SMFTEs) in Kuala Terengganu. Grounded in the Resource-Based View and Dynamic Capability Theory, exploitation learning is positioned as a capability that strengthens service consistency and operational reliability. Using Partial Least Squares Structural Equation Modelling (PLS-SEM) with data from 150 SMFTEs, the study finds that exploitation learning significantly enhances SMFTES performance. Routine optimisation, efficient workflows, and improved service delivery contribute to higher customer satisfaction and stronger competitiveness. The study underscores the need for targeted policy support and capability-building initiatives to bolster SMFTES resilience and promote sustainable growth in Malaysia’s food tourism sector.