The Influence of Network Creation on the Performance of Tourism Businesses, Case Study: Tehran Travle Agencies

Diversifying the economic activities of the society has always been a major challenge of governors in every country. Attentions are also paid to this issue in Iran and one of the important measures which is done in this regard is considering tourism in recent years. Tourism is a multidimensional industry consisting of different sectors as small and medium sized enterprises which are of great importance in this industry. But these businesses are usually faced with shortages of budget, lack of management and marketing skills and lack of knowledge that network creation helps to overcome them. Therefore, weaknesses can be replaced by strengths through creating relationship among businesses. Main benefits of network creation are increasing revenues, reducing risks and costs and sharing knowledge and experience. In the current paper, the influence of nerwork formation on the performanceof tourism businesses particularly Tehran travel agencies is studied. Data are gathered through documents and surveys and are analyzed by SPSS software and Pearson correlation ratio and T-test. Results show that the performance of businesses improves in networking mode therefore, there is a positive relationship between network creation and performance improvement.