How hotels adjust technology-based strategy to respond to COVID-19 and gain competitive productivity (CP): strategic management process and dynamic capabilities

Abstract

Purpose The purpose of this study is to explore how hotels evolve their dynamic capabilities to adjust their technology-based strategy to improve performance and to gain competitive productivity (CP) during the COVID-19 pandemic and in the aftermath. Design/methodology/approach In-depth interviews with hoteliers were conducted to unveil their dynamic capabilities amid the pandemic as regard adjustments and performance of self-service technology (SST)-based strategies. Thematic analysis was used to analyze the data. Findings Data analysis revealed four types of dynamic capabilities (i.e. sensing, learning, integrating and coordinating capabilities). Equipped with these capabilities, hotels made minor adjustments to their SST strategies. In general, during an economic downturn, hotels refrained from introducing new SSTs. SSTs introduced before the pandemic were used more frequently and received enhanced customer feedback. The findings further revealed that the factors influencing hotels’ application of SSTs before and after the outbreak of COVID-19 remained similar. Originality/value This is the first research integrating CP, dynamic capabilities and strategic management process to explain how hotels adjust technological strategies to recover in a suddenly changed environment. Such a framework enables scholars and practitioners from content-oriented and process-oriented perspectives to make quick but sound strategic management decisions in adapting to turbulent environments. This timely study enriches the expertise of using technology as a recovery strategy and contributes to future research on the practical application of SSTs and crisis management.

The role of digital marketing in mediating the effect of the COVID-19 pandemic and the intensity of competition on business performance

“…Based on these results, it can be interpreted that the higher the perceived COVID-19 pandemic, the higher the adoption of digital marketing, so that in the end, non-financial performance will increase. The results of this study are supported by research by Liu and Yang (2021) which states that the perception of the COVID-19 pandemic has a positive and significant effect on the adoption of technologybased strategies that are ultimately able to improve competitive productivity performance. This condition is caused by the adoption of digital marketing which is able to increase customer satisfaction, customer loyalty, and brand equity due to the increasingly intensive adoption of digital marketing by MSMEs in the culinary sector in Bali.…”

Hotel strategies in times of COVID-19: a dynamic capabilities approach

“…In fact, the hospitality industry is one of the most damaged sectors by dynamic environment due to it is widely exposed to many changes (Hall, 2010;Senbeto & Hon, 2020). Thus, the dynamic capabilities approach is required and could be crucial to analyse the way in which an organization responds to and recovers from an external change due to these are needed to learn from and adapt to turbulent environments (Liu & Yang, 2021;Teece, 2007).…”

Indonesian Hotels’ Dynamic Capability under the Risks of COVID-19

“…In a time of dire condition, the government's support may facilitate a better knowledge in the dynamic capabilities possessions as an effort to increase the economic outcome (Liu 2021). The capacity of previous technological controls may leverage the recovery position of the hotel and be more dynamic under the turbulence of COVID-19 (Liu and Yang 2021). The resourcebased view theory (R.B.V.…”