This is an original research done in Nepal with the close interaction with Nepalese tourism entrepreneur. Basically this research evaluated the performance of those entrepreneurs utilizing two theoretical concepts; the first one is cluster policy and the diamond model. Principal focus of this study is an innovation concept and Information communication technology (ICT). The results of the study indicates that the innovative resources and innovative activities are all positively influencing tourism sector performance, likewise ICT will have a positive impact rendering the linkage stronger. The suggested construct of the study can be useful for various sectors of developing countries.