Disruptive Innovation by Smarter Destination Platform Knowledge Diffusion: Towards a Theory of Demand and Supply Governance

This paper examines, in the broader context of knowledge diffusion, to what extent, supply and demand governance can contribute to reconciling the ‘high tech- high touch’ dilemma embedded in technology and a destination’s local heritage, respectively. The theoretical argumentations presented are justified by the findings of IBM’s ‘Advanced Platform for Smarter Destinations’ project aimed at enhancing SMEs competiveness and intelligent destination development through a coexistence strategy design. In the context of the Europe 2020 strategy for smart sustainable and inclusive growth the latter is relevant to provide a level ‘playing field for SMEs’. Smarter Destination Platforms afford, first, the potential to reconfigure the destination partners’ roles, rules and responsibilities, beyond the internal SME logic. Second, provide a vehicle for coherent multi-level knowledge diffusion in support of SMEs’- stakeholders decision making. Third, help cultivate a culture within SME networks, which bear value propositions aimed at a sustainable, green economy, social cohesion and competitive SMEs. The challenge of disruptive innovation necessitates destination to become smarter; sustain themselves by levering the role of ICTs in response to different stakeholders; develop knowledge and experience converged within a supply and demand governance model, which enables simple and integrated access that characterize Smarter Destination Platforms and the destination brands which they serve.