BORNEO AKADEMIKA (BA)

Volume 7 (2), December 2023 (141 - 151)

ISSN: 2462-1641
e-ISSN: 2735-2250

Journal home page:

https://borneoakademika.uitm.edu.my/

THE EFFECT OF COMMUNITY BASED TOURISM IN BATU PUTEH

KINABATANGAN BORNEO BASED ON VALUE CO-CREATION ON SUBJECTIVE
WELLBEING

NIK ROZILAINI WAN MOHAMED1* & NURFATIN NABIHAH FAISAL2

1
Faculty of Hotel and Tourism Management, Universiti Teknologi MARA Melaka Campus
2
Faculty of Architecture, Planning and Surveying, Universiti Teknologi MARA Shah Alam
rozilaini@uitm edu.my

ABSTRACT
This study examines the effect of community-based tourism in Batu Puteh, Kinabatangan,
Borneo based on a new study gap variable known as value co-creation on subjective wellbeing.
In recent years, there has been a growing interest in community-based tourism as a
sustainable development approach that empowers local communities and fosters social
responsibility. The problem statement of this study lies in the need for evaluation and
understanding of the impact of community-based tourism in Batu Puteh, Kinabatangan,
Borneo, on wellbeing, specifically in terms of value co-creation. Specifically, there is a need to
assess how community-based tourism contributes to the overall wellbeing of the local
community by examining the co-creation of values between tourists and community members.
The sample size of this study consists of 284 respondents from the community at Batu Puteh
Village. The research method used in this study is quantitative, which involves collecting and
analyzing numerical data. Analysis using SEM Amos to examine the relationship between
community-based tourism benefited the perceived costs, value co-creation, and subjective
wellbeing. The findings of this study contribute to the existing body of knowledge on
community-based tourism and its impact on wellbeing. The perceived costs were found not
significant in influencing the value co-creation process between tourists and community
members in Batu Puteh, Kinabatangan, Borneo. However, overall findings found that
community-based tourism in Batu Puteh, Kinabatangan, Borneo, has a positive impact on the
wellbeing of the local community.

Keywords: Community-Based Tourism; Value Co-Creation; Community-Based Tourism

Subjective Wellbeing; Tourism Impact

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Introduction
Community-based tourism in Batu Puteh, Kinabatangan, Borneo, is an approach to
sustainable tourism that aims to engage the local community in the decision-making process
and management of tourism activities. This strategy places importance on preserving local
cultures and biodiversity while ensuring that benefits from tourism are distributed equitably
among the residents (Muehlenbein et al., 2012). Additionally, community-based ecotourism in
this area focuses on combining nature-focused travel with conservation efforts, education
initiatives, support for rural livelihoods, and active involvement of the local population
(Sukmana, 2022). Located within the Kinabatangan District along Malaysia's East Coast
Sabah region, Batu Puteh Village is overseen by a cooperative known as Batu Puteh
Community Tourism Cooperative Limited. The village offers a diverse range of village tourism
programs, which encompass various activities related to the conservation of habitats and
nature as well as community work (Chan et al., 2021). Volunteer tourists are actively engaged
in several projects that aim to conserve nature, such as collecting seeds, restoring trails, cutting
trails, building trails, restoring forest habitats, planting trees, restoring lakes, and working in
nurseries. In Batu Puteh, Kinabatangan, on Borneo Island, community-based tourism is
implemented as a distinctive, sustainable approach that promotes a harmonious coexistence
between nature preservation efforts, cultural heritage, and the local community's wellbeing.
This strategy prioritizes attaining an optimal blend of immersive experiences within natural
environments, relevance towards environmental protection, and educational opportunities
while actively involving all members at the site. By promoting conscious visitor behaviour and
minimizing negative impacts, such as reducing carbon footprints and practising responsible
waste management, community-based tourism aims to create a low-impact and
environmentally sensitive form of tourism that benefits both the natural environment and the
local community.

Literature Review
Community-based tourism
The issue of community-based tourism is often overshadowed by the emphasis on
environmental issues in sustainable tourism (Cole, 2006). The report emphasizes the
significance of environmental issues and highlights the prominent role of the natural
environment in sustainable development and sustainable tourism. However, it is worth noting
that sociocultural issues in tourism have yet to receive proportional attention compared to
environmental concerns. These sociocultural aspects are occasionally mentioned or given less
emphasis and are often considered less significant or overlooked altogether. For instance, a
study of seven edited collections focusing on sustainable tourism during the 1990s reveals that
only about 17% of articles were dedicated to community-related issues (Cole, 2006).
Community-based tourism entails the active engagement of local communities in in-tourist
activities, intending to benefit the community and promote sustainable development
(Rosilawati et al., 2021). It is closely tied to community development, capacity building, local
empowerment, and fostering local businesses (Rosilawati et al., 2021). The main aim of
community-based tourism is to achieve sustainable tourism by incorporating community
participation as a fundamental component. This aligns with the principles of sustainable
tourism that strive for a balanced approach encompassing economic, social, and
environmental dimensions.

One of the main obstacles faced in developing community-based tourism is the requirement
to tackle a range of issues that arise. These issues can involve concerns regarding
infrastructure, marketing, and engagement with local communities. It is essential to implement
strategies that guarantee the long-term viability of community-based tourism, including
capacity-building initiatives, empowering local communities, and establishing collaborations

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between communities and key players in the tourism industry (Sutresna et al., 2019). It is
crucial to implement effective promotional tactics that emphasize the distinct cultural elements
and local engagement to advocate for community-based tourism. This objective can be
accomplished by organizing events and festivals that not only showcase the indigenous culture
and traditions but also generate economic prospects for the community (Rosilawati et al.,
2021). From the generated economic prospects, value co-creation theory was developed for
the resiliency of community-based tourism (Habibi & Kohli, 2021; Sukmana, 2022)

Value co-creation theory

Value co-creation refers to the collaborative process where tourists and the local community
actively participate in creating and experiencing value in tourism activities for economic
resilience (Habibi & Kohli, 2021). This concept recognizes that the tourist does not solely
determine the value of a tourism experience but is also influenced by the active involvement
and contributions of the local community. In the context of community-based tourism in Batu
Puteh, Kinabatangan, Borneo, value co-creation involves the active participation of the local
community in every stage of the tourism experience, from planning and development to service
provision and ongoing management. Through this collaborative approach, tourists can gain a
deeper understanding and appreciation of the local culture and environment, while the local
community can showcase their uniqueness. The definition of value co-creation from a
community perspective encompasses the idea that the local community plays a central role in
creating and providing value in the tourism experience (Payne et al., 2007; Vargo, 2014). This
means that the local community actively contributes their knowledge, skills, resources, and
cultural heritage to enhance the overall tourism experience for visitors. By actively participating
in co-creating tourism experiences, the local community in Batu Puteh, Kinabatangan, Borneo
can improve their own economy and living standards (Steptoe et al., 2015). This can be
achieved through various means, such as the creation of job opportunities within the tourism
industry, the development of small businesses and enterprises that cater to tourists, and the
promotion of cultural heritage and traditional crafts.

Subjective wellbeing

Subjective wellbeing refers to an individual's overall evaluation and perception of wellbeing,

happiness, life satisfaction, and fulfilment. In the context of community-based tourism in Batu
Puteh, Kinabatangan, Borneo, subjective wellbeing can be influenced by various factors
related to value co-creation and community participation (Ibrahim et al., 2019). These factors
include the level of community involvement and empowerment, the economic benefits
generated from tourism activities, the preservation and promotion of cultural heritage, and the
overall quality of the tourism experience for both locals and tourists. By actively participating
in the value co-creation process, the local community in Batu Puteh can enhance their
subjective wellbeing. Gürsoy's subjective wellbeing theory focuses on the relationship between
tourism development and the wellbeing of local communities. The sustainability of tourism
development relies on public support (Yeniasır & Gökbulut, 2018). This means that the
attitudes and perceptions of local people towards tourism play a crucial role in the success and
sustainability of tourism initiatives. Positive attitudes are often a result of the economic benefits
that tourism brings to the region and its residents. The success of tourism development,
including hunting tourism, also relies on the support and positive attitudes of the local
community (Matejević et al., 2022). In the context of tourism, social exchange theory has been
applied to understand the relationships between tourists and local communities. Tourism
development often involves interactions between tourists and residents, and these interactions
can have both positive and negative impacts on the community. Social exchange theory helps

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to explain how these interactions are shaped by the exchange of resources and the perceived
fairness of the exchange.

One study that applied social exchange theory to tourism-community relationships is the
research conducted by Andriotis (2005). The study examined the perceptions and preferences
of community groups in Crete regarding tourism development. The findings of the study
indicated that the perceived benefits and costs of tourism influenced the attitudes and
behaviours of the community groups. The study highlighted the importance of a fair and
equitable exchange of resources between tourists and the local community for positive
tourism-community relationships.

Theory of value co-creation

In the context of community service, value co-creation entails the involvement of community
members in the design, delivery, and evaluation of services (Zhang et al., 2022). Community
members are not passive recipients of services, but active participants who contribute their
knowledge, skills, and resources to address community needs and improve the wellbeing of
the community. Payne et al. (2007) propose a process-based framework for managing value
co-creation, which can be applied to community service. This framework recognizes the
importance of customer involvement, in this case, community members, and places them at
the same level of importance as the service providers in co-creating value. It provides a
structure for community involvement throughout the service delivery process, ensuring that
their perspectives, needs, and aspirations are considered (Ranjan & Read, 2014).

Furthermore, Prahalad and Ramaswamy (2004) argue that value creation is shifting from a
product- and firm-centric view to personalized consumer experiences. In the context of
community service, this means that service providers should focus on creating co-creation
experiences that involve community members in the design and delivery of services (Shen et
al., 2018). By actively involving community members, service providers can tap into their local
knowledge, cultural understanding, and social networks, leading to more effective and
sustainable community service initiatives (Prahalad & Ramaswamy, 2004).

The interaction between service providers and community members in value co-creation is not
limited to a one-way exchange. It involves dialogue, access, transparency, and understanding
of risks (Prahalad & Ramaswamy, 2004). This means that service providers need to establish
open communication channels with community members, foster trust and mutual
understanding, and actively listen to their needs and feedback (Fournier, 1998). By engaging
in this dialogue, service providers can gain valuable insights and co-create solutions that are
more responsive to the specific needs and aspirations of the community (Prahalad &
Ramaswamy, 2004).

Value co-creation is a concept that has gained significant attention in the fields of marketing,
tourism, and consumer behaviour. It refers to the process of consumers actively participating
in creating value with firms or organizations (Piccinini & Schulz, 2018; Prahalad &
Ramaswamy, 2004). Traditionally, value creation was seen as a product- and firm-centric
process, where firms would create value and consumers would passively consume it.
However, with the rise of empowered and active consumers, the focus of value creation has
shifted towards the interaction between the firm and the consumer (Prahalad & Ramaswamy,
2004). One theoretical framework that explores value co-creation is the concept of SoCoMo
marketing, which stands for Social, Contextual, and Mobile marketing (Buhalis & Foerste,
2015). It emphasizes the importance of leveraging social media, mobile technology, and
contextual information to engage consumers in the value-creation process (Buhalis & Foerste,

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2015). However, new perspectives have emerged that emphasize intangible resources, the
co-creation of value, and relationships (Vargo, 2014). This shift in the dominant logic reflects
the changing nature of value creation and the need for firms to engage consumers in the
process.

Research hypothesis

Developing research hypotheses could explore the relationship between community-based

tourism, value co-creation, and subjective wellbeing in Batu Puteh, Kinabatangan Borneo. The
research objective was to understand the level of community-based tourism and value co-
creation in Batu Puteh, Kinabatangan Borneo. The development of the hypotheses were as
follows:

H1a. Economic benefits are positively related to support for tourism development.
H1b. Economic benefits are positively related to value co-creation with tourists.
H2a. Sociocultural benefits are positively related to support for tourism development.
H2b. Sociocultural benefits are positively related to value co-creation with tourists.
H3a. Perceived costs are negatively related to support for tourism development.
H3b. Perceived costs are negatively related to value co-creation with tourists.
H4. Support for tourism development is positively related to value co-creation with tourists.
H5a. Support for tourism development is positively related to resident subjective wellbeing.
H5b. Participation in value co-creation with tourists is positively related to community
subjective wellbeing.

Method

For the analysis, the researcher employed structural equation modelling (SEM) using the
SPSS Amos software to analyze the data and test the hypotheses statistically. SPSS Amos
was selected for our data analysis due to its suitability for causal-predictive analysis and its
requirements for sample sizes and residual distributions. This study employed a face-to-face
survey to examine the relationships in the model. Due to the slow response rate, the collection
period for the study was extended by three months, making it a total of nine months. Three
assistant researchers, who were degree students from UiTM Melaka resident in Melaka and
student resident in Sabah at the end of year 2022, were involved in the data collection process.
The researchers' assistant utilized the local community and snowball techniques to gather data
from dispersed networks. Due to limitations in data collection and the inability to determine the
sampling precisely, a non-probability sampling method was employed. This approach does not
allow for sampling errors or bias in the research. The questionnaire used in the study was
divided into five sections and consisted of 30 questions. The respondents were asked to rate
their agreement on a 7-point Likert scale, ranging from "strongly disagree" to "strongly agree".
The survey was conducted for a duration of four weeks and resulted in a total of 284 completed
questionnaires. The sample in this study consisted of slightly more males (63%) than females
belonging to the tribes from Lower Kinabatangan, Sabah. The respondents in the local
community had work related to tourism activities. Many participants fell within the age ranges
of 41-50 (47%) and 31-40 (27%).

Table 1: Descriptive Result (N=284)

Category Feature Frequency Percentage

Gender Male 179 63%
Female 105 36%
Age 20-30 30 11%
31-40 79 27%

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 Table 1 (Continued): Descriptive Result (N=284)

Category Feature Frequency Percentage

Age 41-50 135 47%
>50 39 13.7%
Education Junior high school and below 155 54%
Senior high school 99 34%
Undergraduate 23 8%
Others 7 2%
Status Married 126 44%
Single 98 34%
Separated 5 2%
Divorced 20 7%
Others 35 12.3%
Descriptive Source

Validating The Measurement Model: Confirmatory Factor Analysis (CFA)

Missing data occurred when some respondents chose not to answer certain questions in the
questionnaires, resulting in 80 missing cases in this study. To address this, the highest
probability answer given by the overall respondents was selected to fill in the missing data.
Outliers were initially identified based on a mild outlier criterion of a score exceeding 1.5 times
the interquartile range (IQR). The validity of each factor construct, which consisted of a total of
30 items, was then assessed. The coefficient alpha values were collected, and items with a
minimum value of 0.70 were identified and presented in Table 2. In the initial stage, the data
underwent a convergent validity test, which evaluates the correlation between each construct
and the similarity of items within the study framework. Additional components examined during
the convergent validity test included the factor loading of the indicators, composite reliability
(CR), and average variance extracted (AVE) (Hwang et al., 2010). Items with factor loadings
below 0.6 were removed during the confirmatory factor analysis (CFA) until the fitness indexes
were achieved. The removal of items should be at most 20% of the overall items in the
constructs, and a total of six items were removed.

Table 2: Properties of Construct

Constructs Sub- Constructs Items Loadings AVE CR

Economic benefits 0.83 0.87
EcO03 Tourism improves a better standard of living. 0.753
EcO04 Tourism provides more employment opportunities. 0.766
EcO05 Tourism is likely to provide improved business. 0.800
EcO07 Tourism is likely to provide increased investment. 0.738
Perceived of costs living 0.62 0.68
Cos02 Tourism results in crowding. 0.612
Cos03 Tourism results in environmental impact. 0.603
Cos04 Tourism results in more noise. 0.678
Cos06 Tourism results in environmental pollution. 0.602
Cos07 Tourism results in food cost increase. 0.578
Resident subjective well being 0.85 0.89
RsW02 Supporting tourists enriched my life. 0.921
RsW05 I am really glad that I support tourists. 0.818
RsW06 I feel good about myself by helping tourists. 0.738
Support for tourism development 0.84 0.88
StD01 I support the development of tourism in general. 0.855
StD02 I support nature-based tourism 0.615
StD04 I support cultural and historic based tourism 0.687
AVE = average variance extracted; CR= composite reliability

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Result

Structured Model
Bringing together the structural model requires several steps. Firstly, the fitness of the
measurement of all constructs needs to be estimated (refer to Figure 1). Secondly, all
hypotheses developed for this study framework should be assessed. Lastly, the significance
of the study framework needs to be evaluated. This study examined five main constructs and
tested nine planned hypotheses. Economic benefits, social-cultural benefits, perceived cost of
living, support for tourism development and co-creation value act mediating the exogenous
constructs. The endogenous construct in this study is subjective wellbeing. Common fitness
indexes include Chi-Square, RMSEA, and GFI. In this study, the model achieved a satisfactory
fit with a Chisq/df ratio of 1.599 (less than 3.0), an RMSEA of 0.053 (less than 0.08), a CFI of
0.911 (greater than 0.90), a TLI of 0.899 (greater than 0.85), and an IFI of 0.912 (greater than
0.90). The structured model, as recommended by (Ogbuanya & Chukwuedo, 2017;
Pamungkas et al., 2019) was used to examine the structural model.

The R-square values and the significance of path coefficients were analyzed. The results,
presented in Figure 1, indicate that the R2 values for resident subjective wellbeing, support for
tourism development, and value co-creation with tourists were 66%, 26%, and 28%,
respectively. These findings suggest that the model has adequate explanatory power
(Swerdlow et al., 2019).

Figure 1: Result from Structured Model

The results demonstrate that economic benefits are positively associated with both support for
tourism development (β = 0.255, p < 0.001) and value co-creation with tourists (β = 0.221, p <
0.05), supporting H1a and H1b. Similarly, sociocultural benefits are positively related to both
support for tourism development (β = 0.317, p < 0.001) and value co-creation with tourists (β
= 0.288, p < 0.01), indicating support for H2a and H2b.

Regarding the relationship between costs and support for tourism development, the results
indicate that although the sign of the path coefficient was negative, its value did not reach a

147
significant level (β = -0.113, p > 0.05). Therefore, H3a, which showed a negative relationship
between costs and support for tourism development, was not supported. However, the path
coefficient from costs to value co-creation with tourists was negative and significant (β = -
0.160, p < 0.05), supporting H3b, which proposed a negative relationship between costs and
value co-creation with tourists. While for H4 the result (β = 0.235, p < 0.05) was positive and
significant.

The relationship between costs and support for tourism development, the results indicate that
while the sign of the path coefficient is positive, it is statistically significant. However, both costs
and support for tourism development are positively related to community subjective wellbeing
(β = 0.441 and 0.471, p < 0.001), supporting H5a and H5b.

To assess the indirect effects of perceived tourism impacts, support from tourism, and co-
creation with tourists on resident subjective wellbeing, we conducted a bootstrapping
procedure with 1000 resamples using bias-corrected and accelerated 95% confidence
intervals in SEM Amos. The indirect effect of costs on residents’ subjective wellbeing through
co-creation with tourists was significant (p < 0.05), suggesting that tourism development costs
hinder residents' participation in value co-creation with tourists, leading to lower subjective
wellbeing. Additionally, all other indirect effects were positive and significant, indicating that
perceived benefits of tourism development positively influence residents' support for tourism,
participation in value co-creation with tourists, and subsequently, their subjective wellbeing.

According to Figure 1, the R-square value of 0.258 showed that support for tourism
development is really influenced by economic benefits, social-cultural benefits, and perceived
cost for about 25.8%. R-square indicated medium effect, according to Hair et al. (2017). R-
square value of 0.258 (25.8%) represents the proportion of the variance in support for tourism
development that can be explained by economic benefits, social-cultural benefits, and
perceived cost. The co-creation value R-square value of 0.276 showed that the economic
benefits, social benefits, and perceived costs for about 27.6%. R-square indicated a medium
effect. R-square value of 0.276 (27.6%) represents the proportion of the variance in support
for tourism development that can be explained by economic benefits, social-cultural benefits,
and perceived cost. For the result of community subjective wellbeing at Kinabatangan Sabah,
between all variables, there was a significant impact with an R-square value of 0.663. This
indicates that approximately 66.3% of the variance in the dependent variable can be explained
by the independent variables included in the model. The remaining 33.7% of the variance is
attributed to other factors not accounted for in the analysis.

Theoretical implication
This study contributes to the theoretical development of resident-tourist value co-creation by
proposing and testing a model that examines the effects of tourism value co-creation on
residents' subjective wellbeing. Subjective wellbeing is considered part of the value for
residents and is derived from their interaction and value co-creation with tourists (Diener et al.,
2009). Conversely, tourists gain insider information and advice on how to improve their
vacation experiences. Additionally, the perceived benefits of tourism, as explained by social
exchange theory, and support for tourism development are positively related to residents' value
co-creation with tourists (Lyubomirsky et al., 2005). The findings reveal that residents' support
for tourism development positively influences their co-creation with tourists, and both value co-
creation and support for community-based tourism in Batu Puteh, Kinabatangan, Borneo
tourism development impact the community' subjective wellbeing. This suggests that if
residents become aware of the benefits of tourism and actively participate in developing the
tourism industry, they are more likely to co-create value with tourists. This evidence suggests

148
that resident support for tourism development and value co-creation with tourists may be
volitional. Engaging in small acts of kindness and participating in activities that support tourism
development and tourists can increase the wellbeing of the community in Batu Puteh,
Kinabatangan, Borneo. Furthermore, activities facilitating social interaction and relationship
development, such as resident-tourist value co-creation, can enhance subjective wellbeing.

Limitations of The Study

The study had limitations regarding the sample size or demographic characteristics of the
participants. Future research should conduct longitudinal studies to explore the long-term
effects of resident-tourist value co-creation on subjective wellbeing. Longitudinal research can
help establish causal relationships and capture changes over time. Cross-cultural comparative
studies to explore how resident tourists value co-creation and its impact on subjective
wellbeing vary across different cultures and communities. Comparative studies can provide
valuable insights into cultural differences in tourism interactions. Future research should
consider employing qualitative research methods such as interviews or focus groups to gain a
deeper understanding of residents' experiences and perceptions regarding tourism
development and value co-creation. Other researchers can conduct community engagement
programs and propose the development of community engagement programs that educate
residents about the benefits of tourism and encourage active participation. These programs
can include workshops, seminars, and awareness campaigns. By addressing limitations,
proposing future research directions, and outlining practical implications, the discussion
section can provide a comprehensive overview of the study's significance and guide future
research and real-world applications.

Conclusion

This study contributes to the theoretical development of community value co-creation and its
impact on their subjective wellbeing. The findings highlight that tourism contributes more to
local communities than economic benefits, as value co-creation with tourists and support for
tourism development can increase subjective wellbeing. These psychological benefits are
important for community-based tourism in Batu Puteh, Kinabatangan, Borneo for destination
marketing and management organizations and government agendas. The findings of this study
have practical implications for tourism industry operators and local authorities, who often need
to justify investments in tourism development. While politicians and local authorities may
prioritize industries that promise higher employment and economic wealth, such as the
petrochemical industry, these industries can negatively affect community wellbeing. Therefore,
the results of this study can inform decision-making and encourage the incorporation of tourism
development into resident well-being-oriented policies. Inclusive policy development that
involves residents in policymaking is crucial to ensure effective community integration and to
address residents' views and attitudes towards tourism.

Destination marketers can collaborate with local authorities to educate stakeholders,

employees, customers, and the wider population about the significant social and wellbeing
benefits of interaction and value co-creation. While this study provides valuable insights, there
are limitations and opportunities for further research. Future studies could examine the impact
of residents' value co-creation on their subjective wellbeing and the impact of tourist activity on
community needs, such as belonging or esteem. Additionally, exploring moderating factors
and external variables, such as individual moral values, altruistic orientation, stage of tourism
development, and the degree of the local economy's reliance on the tourism sector, could
provide a more comprehensive understanding of the relationships. Replicating the findings in
different contexts using rigorous sampling approaches would enhance the generalizability of

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the results. Furthermore, distinguishing between helping behaviour motivated by goodwill or
self-interest and conducting multi-group analyses based on the economic reliance on tourism
could provide further insights into the model and related paths. To deepen the understanding
of the relationship between tourism development and residents' wellbeing in Batu Puteh,
Kinabatangan, Borneo, future studies can employ cross-sectional surveys to examine
residents' subjective wellbeing and perceived income. Additionally, qualitative data can be
collected through in-depth interviews with residents to gain further insights into their
experiences and perceptions.

Acknowledgments

The researcher would like to extend our appreciation to the community of Batu Puteh Tourism
Cooperative Ltd and local community for generously dedicating their time and wholeheartedly
cooperating in supplying us with the necessary information essential for this research paper.

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