Platform Dependence, Demand Volatility, and Sme Resilience in a Heritage Destination: Evidence from Tourism Firms in Melaka

Abstract

Digital platforms have become critical market infrastructure in tourism destinations, yet their implications for firm resilience remain underexplored. This study examines how platform dependence shapes the financial resilience of tourism small and medium enterprises in Melaka, a mature heritage destination exposed to overtourism risks. Drawing on platform ecosystem theory and resource dependence logic, the study proposes a structural model linking platform dependence to financial resilience through pricing power erosion and demand volatility, with branding capability as a moderating resource. Survey data from 320 tourism firms were analysed using structural equation modelling. The findings show that platform dependence improves short-term occupancy performance but significantly reduces pricing power and increases demand volatility, which in turn weakens financial resilience. Branding capability mitigates these adverse effects by stabilising demand and preserving partial pricing autonomy. The study extends tourism platform research by repositioning platform dependence as a structural vulnerability rather than a purely distributional advantage and highlights the need for capability-based strategies to enhance destination-level resilience.