Innovation for sustainability through co-creation by small and medium-sized tourism enterprises (SMEs): Socio-cultural sustainability benefits to rural destinations

Small and medium-sized tourism enterprises (SMEs) are the dominant industry players in rural destinations. This study investigates how they can contribute to socio-cultural sustainability benefits of rural destination communities by engaging in co-creation in innovation for sustainability (IFS). The rural destinations of Vega and Roros were selected as qualitative empirical cases to investigate 14 tourism SMEs' co-creation in IFS practices. The findings indicate that due to contextual elements of rurality (e.g. local embeddedness, strong personal relations, and trust), tourism SMEs co-create in IFS with various local stakeholders, and contribute to the sociocultural benefits of rural destinations' sustainability through local sourcing, education, resource synergies, inclusion, and quality of life. This study contributes to the literature on sustainable rural destination development and the role of tourism SMEs, as well as expands the understanding of IFS and the benefits of co-creation.