A Dynamic Capabilities Approach to Business Model Innovation in Times of Crisis

Abstract

This study explores how tourism entrepreneurs change their business models during a crisis. By adopting dynamic capabilities as integral to business model change, this qualitative study explores how entrepreneurs change business models to meet a crisis, and proposes a taxonomy of important entrepreneurial practices underlying dynamic capabilities. This study empirically examines seven small companies operating in the nature-based tourism industry in Norway. Focusing on dynamic capabilities, whether innovative or adaptive, the findings suggest 12 dynamic capability-based entrepreneurial practices that are categorized as resource-, market, and technology-related practices. This study contributes to the literature by integrating business model innovation and dynamic capabilities in tourism crisis management.

Crisis management process for project-based organizations

“…According to Killen and Hunt (2010), dynamic capability consists of people, structures and processes that are continually monitored and adjusted to meet the changing requirements of the dynamic environment. Although, studies on crisis management have recently adopted insights from dynamic capability theory (Mayr et al, 2022;Sahebalzamani et al, 2023); however, research on crisis management in PBO's under the lens of dynamic capability theory is still lacking. Since PBO's are different from traditional organizations, the nature of the crisis, its sources and solutions may also vary for PBOs.…”

“…Although, studies on crisis management have recently adopted insights from dynamic capability theory (Mayr et al. , 2022; Sahebalzamani et al. , 2023); however, research on crisis management in PBO's under the lens of dynamic capability theory is still lacking.…”

The Ukraine/Russia conflict: Geopolitical and international business strategies

“…The sentiment toward the Ukrainian diaspora might be more positive as they have linkages to the invaded country. This means research could focus on innovation in times of crisis (Sahebalzamani, Jørgensen, Bertella, & Nilsen, 2022). Research could look into how and why businesses with Ukrainian linkages are showing or hiding their association.…”