Human resource practices in SMEs and their role in peri-urban tourism growth: A case study of culinary tourism, Indonesia

This study examines the strategic role of small and medium enterprises (SMEs) in driving peri-urban tourism growth through the lens of human resource practices (HRP). Focusing on the culinary tourism sector in Kolaka City, Southeast Sulawesi, the research responds to substantial growth in tourist visits by analyzing how organizational capabilities shape destination performance. Using a quantitative design, data were collected from 247 SMEs through a structured questionnaire and analyzed using SEM-PLS. The results show that HRP strongly influence Employee Hospitality (EH), and that frontline service behavior serves as the primary mechanism linking HRP to Tourism Growth (TG). Mediation analysis confirms an indirect-only pattern, indicating that HR practices enhance tourism outcomes only when they successfully elevate hospitality behaviors and customer experience. The findings highlight that peri-urban tourism competitiveness depends not only on physical or pro-motional assets but also on the behavioral and organizational capacities of SMEs-especially structured HR systems, consistent service routines, and supportive managerial climates. Theoretically, this study extends HRM and organizational behavior perspectives into tourism research by demonstrating how micro-level HR strategies translate into macro-level tourism performance through behavioral mediation. Practically, the results offer a foundation for policy and capacity-building programs centered on service-oriented recruitment, modular hospitality training, performance feedback, and SME empowerment to strengthen sustainable peri-urban tourism development.