Interfirm collaboration as a performance-enhancing survival strategy within the business models of ethnic minority-owned urban restaurants affected by COVID-19

Abstract

PurposeGuided by resource-based theory, this investigation examines the extent to which knowledge sharing as part of interfirm collaboration serves as a performance-enhancing strategy; that is, in the context of assisting ethnic minority-owned urban restaurants to survive during a major market disruption. Specifically, the study features owner-managers' perceptions concerning the evolving environmental circumstances associated with the novel coronavirus (COVID-19) pandemic.Design/methodology/approachData collection took place among owner-managers of urban restaurants in a Canadian city during the COVID-19 pandemic in late 2020. This featured semi-structured interviews with restaurants' owner-managers originating from various ethnic origins together with secondary data where possible. Data analysis followed an adapted Gioia approach.FindingsExamples of interfirm collaboration include restaurants' owner-managers leveraging social capital and sharing knowledge about the effects of legislation and health guidelines on operating procedures, together with good and bad practices where firms have pivoted their business models via take-outs, patio dining and in-room dining. Irrespective of the strength of network ties (within and across ethnic communities), owner-managers were motivated to share information to facilitate their survival. Nevertheless, this study raises questions over the extent that certain decision-makers exhibit strategic flexibility responding to environmental conditions together with their respective ability to engage/retain customers plus service-oriented employees. In addition, a question is whether some owner-managers will continue to collaborate with their competitors after COVID-19 ends, and if so, with whom and the magnitude of activities. In particular, “trust” via psychological contracts and “complementary strategies” among partners across coethnic and different ethnic origins are key considerations.Originality/valueA body of knowledge exists addressing the notions of both interfirm collaboration and market disruptions in the broader cross-disciplinary literature. However, the interfirm collaborative practices of small firms with ethnic minority ownership that are otherwise rivals remain under-researched. More specifically, interfirm collaboration as a survival strategy for owner-managers during the market disruption arising from a crisis situation features as an original contribution.

Organizational resilience under COVID-19: the role of digital technology in R&D investment and performance

“…When major emergency public health events occur, small-scale firms exhibit flexibility that large firms do not have. The benefits of strategic flexibility appear in the ability of firms to adjust their strategies in time to meet customer needs promptly when the environment changes (Crick et al, 2021). Some large-scale firms in China have also been caught in the resource mismatch trap.…”

Impact of the COVID-19 pandemic on business-to-business relationships in digital ecosystems: an African perspective

“…For instance, an organization's use of disruptive thinking brings innovative solutions, such as using its production line to produce medical supplies, such as sanitizers and masks, thereby making the organization more resilient (Cankurtaran and Beverland, 2020). Other organizations use coopetition, simultaneous cooperation and competition among themselves, which entails information sharing and collaboration to cope with the global crisis (Crick and Crick, 2020;Crick et al, 2021). Greco et al (2022) suggested that knowledge sharing as part of interfirm collaboration is a performance-enhancing strategy.…”

Effective airbnb advertising during COVID-19 pandemic: Message format and hypothetical distance

“…The unprecedented COVID-19 pandemic has demonstrated the vulnerability of the tourism and hospitality sector, by threatening their operations, management, and revenues ( Choi & Choi, 2021 ; Crick et al, 2021 ; Siow et al, 2021 ). Airbnb hosts have been substantially hit by a large drop in the number of bookings, and by the travel restrictions introduced under the government's coronavirus action plan ( Chen et al, 2022 ; Dolnicar & Zare, 2020 ).…”