Crisis innovation: a study of Michelin-starred restaurants' strategic renewal and alignment

Abstract

PurposeUsing the lens of crisis innovation and strategic alignment, this study explores how a segment of the restaurant sector that may be less agile than others—Michelin-starred restaurants—perceives and aligns with the challenges brought about by the COVID-19-pandemic.Design/methodology/approachThe study collected data from 19 Michelin-starred restaurants in Spain using a qualitative interview method. The data were analyzed qualitatively and organized thematically.FindingsFour key categories of strategic challenges were identified: human resources, uncertainty, control and economic challenges. In response, chefs displayed both behavioral and organizational strategies. Those organizational strategies were new human resource management, reorganization, product and service innovation and marketing. While the new human resource management actions adopted to align with the human resource challenges identified, a misalignment remains between some of the other strategic actions, such as product and service innovation, marketing and economic and uncertainty challenges.Originality/valueThe findings offer new insight into Michelin-starred restaurant chefs' challenges and (mis)alignment strategies, an area that has been understudied in the current literature on innovative responses in the hospitality sector post-pandemic.

Renew or die amidst COVID-19: investigating the effect of organizational learning culture on strategic renewal through strategic reconfiguration and digital transformation

“…In agreement with our point of view, previous studies that focused on investigating the SR of organizations amidst the COVID-19 pandemic focused mainly on profit seeking organizations such as manufacturing SMEs, hospitality sectors, tourism, restaurants and high-tech SMEs (e.g. Aidoo et al, 2021;Gossling et al, 2020;Gottardello and Karabag, 2022;Jaka et al, 2022;Zahoor et al, 2022). This is mainly because the pandemic's related uncertainty has reshaped clients' demands and behaviors, which challenges organizations and generates financial instability for them.…”

“…Organizations cannot function in an isolation and must coordinate internal operations, interact with the outside environment and adapt to changing, disruptive and dynamic institutional and environmental environments (Gottardello and Karabag, 2022). The key to long-term corporate survival is aligning internal processes and factors with external ones (Beer et al, 2005).…”

“…While many companies of a similar size and position in a given industry may experience crises in a similar way, the ability of these companies to strategically renew themselves is largely influenced by internal factors, such as leadership, organizational culture and learning, the financial resources availability and the ability to innovate, transform and adapt (Gottardello and Karabag, 2022).…”

“…Therefore, empirical research has recently focused on how companies respond strategically to crises (Ghaharian et al, 2021). Perhaps no business type has faced a greater threat in recent years than the COVID-19 epidemic, which has necessitated swift strategic renewal (Gottardello and Karabag., 2022). Numerous recent studies have documented how the pandemic's uncertainty has altered customers' needs, posing challenges for businesses (Byrd et al, 2021;Templeton et al, 2021) and causing financial instability (Kaushal and Srivastava, 2021).…”

“…Dhoopar et al, 2022;Gorjian Khanzad and Gooyabadi, 2021;Jia et al, 2020;Thomas and Suresh, 2022;YahiaMarzouk and Jin, 2022). While the current literature claims that knowledge of the pandemic and the resilience of many business sectors has risen, it is apparent that knowledge of the factors supporting strategic renewal in the face of the epidemic has been under-studied (Gottardello and Karabag, 2022). Strategic renewal encompasses organizational strategies, structural adjustments and other systematical changes (Zahra, 1993).…”