Mechanisms for industrial coordination of “new” tourism regions: The case of Dagestan

Abstract

The tourism industry that has developed in several constituent entities of the Russian Federation in the last three years contributed to the growing interest in its architecture. The article identifies the driving force behind change in the structure of the industry in the “new” tourism regions. The methodological basis of the study combines institutional theory (principally, the theory of transaction costs underlying the counterparties coordination mechanisms) and the concept of tourism product. The research methods of comparative analysis and in-depth interviewing were applied. The empirical data were retrieved from 29 interviews with representatives of the tourism business conducted between October, 2021 and November, 2022 in three constituent entities of the RF. The study demonstrates that the hybrid coordination mechanisms are most common in the “new” tourism regions. For instance, in Dagestan, the tourism product is created within vertical networks that unite partners at different stages of the value chain, while the selection of counterparties and the exchange of resources for this product to be produced take place within horizontal networks that enhance the efficiency of the industry. At the same time, as the tourist flow intensifies, there emerge some trends towards hierarchization (dealing with contractors as part of the firm) and a decrease in the role of horizontal networks in the functioning of the industry. Based on the results obtained, we can conclude that the process of hierarchization will be continued, while the potential associated with entrepreneurial networks is not used actively enough by both the business itself and the state.