IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v14y2022i20p13111-d940922.html
   My bibliography  Save this article

Entrepreneurs’ Responses to COVID-19 Crisis: A Holistic Dynamic Capabilities Perspective in the Saudi Food and Beverage Sector

Author

Listed:
  • Islam Elgammal

    (Business Administration Department, College of Business, Assfan Main Campus, University of Jeddah, Jeddah 23218, Saudi Arabia)

  • Mashhour Hani Baeshen

    (Marketing Department, College of Business, Assfan Main Campus, University of Jeddah, Jeddah 23798, Saudi Arabia)

  • Ghada Talat Alhothali

    (Marketing Department, College of Business, Assfan Main Campus, University of Jeddah, Jeddah 23798, Saudi Arabia)

Abstract

The COVID-19 pandemic has been an active crisis for businesses around the globe. This paper adopts the Dynamic Capabilities (DC) theory to investigate factors that may account for differences in entrepreneurial marketing (EM) adoption and entrepreneurial marketing opportunities during two stages of the recent COVID-19 pandemic, namely the full and partial closure. The existing study provides useful insights into the functioning of entrepreneurial marketing that make the related opportunities and challenges visible. Additionally, the paper explores entrepreneurial marketing strategies employed by Saudi entrepreneurs within the Food and Beverage sector (F&B) to mitigate the uncertainty and challenges posed by the pandemic. Since the nature of the research inquiry is exploratory, semi-structured interviews with seventeen restaurant and cafe owners were conducted to explore the phenomena under investigation and confirm the constructs used for the model development. Under exceptional circumstances, restaurants and cafés representing the F&B sector have been forced to respond quickly, become innovative and make compromises. Findings revealed that converting to survival mode with short time frames was the only solution for entrepreneurial marketing within the context of the COVID-19 pandemic.

Suggested Citation

  • Islam Elgammal & Mashhour Hani Baeshen & Ghada Talat Alhothali, 2022. "Entrepreneurs’ Responses to COVID-19 Crisis: A Holistic Dynamic Capabilities Perspective in the Saudi Food and Beverage Sector," Sustainability, MDPI, vol. 14(20), pages 1-22, October.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:20:p:13111-:d:940922
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/14/20/13111/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/14/20/13111/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Spiggle, Susan, 1994. "Analysis and Interpretation of Qualitative Data in Consumer Research," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 21(3), pages 491-503, December.
    2. Erwin Danneels, 2008. "Organizational antecedents of second‐order competences," Strategic Management Journal, Wiley Blackwell, vol. 29(5), pages 519-543, May.
    3. Richard L Daft & Juhani Sormunen & Don Parks, 1988. "Chief executive scanning, environmental characteristics, and company performance: An empirical study," Strategic Management Journal, Wiley Blackwell, vol. 9(2), pages 123-139, March.
    4. Khurana, Indu & Dutta, Dev K. & Singh Ghura, Amarpreet, 2022. "SMEs and digital transformation during a crisis: The emergence of resilience as a second-order dynamic capability in an entrepreneurial ecosystem," Journal of Business Research, Elsevier, vol. 150(C), pages 623-641.
    5. Li, Da-yuan & Liu, Juan, 2014. "Dynamic capabilities, environmental dynamism, and competitive advantage: Evidence from China," Journal of Business Research, Elsevier, vol. 67(1), pages 2793-2799.
    6. Kathleen M. Eisenhardt & Jeffrey A. Martin, 2000. "Dynamic capabilities: what are they?," Strategic Management Journal, Wiley Blackwell, vol. 21(10‐11), pages 1105-1121, October.
    7. Fairlie, Robert W, 2020. "The Impact of COVID-19 on Small Business Owners: Continued Losses and the Partial Rebound in May 2020," Santa Cruz Department of Economics, Working Paper Series qt21f993s2, Department of Economics, UC Santa Cruz.
    8. Noble, Charles H., 1999. "The Eclectic Roots of Strategy Implementation Research," Journal of Business Research, Elsevier, vol. 45(2), pages 119-134, June.
    9. Karl V. Lins & Henri Servaes & Ane Tamayo, 2017. "Social Capital, Trust, and Firm Performance: The Value of Corporate Social Responsibility during the Financial Crisis," Journal of Finance, American Finance Association, vol. 72(4), pages 1785-1824, August.
    10. Constance E. Helfat & Margaret A. Peteraf, 2015. "Managerial cognitive capabilities and the microfoundations of dynamic capabilities," Strategic Management Journal, Wiley Blackwell, vol. 36(6), pages 831-850, June.
    11. Gautam Ray & Jay B. Barney & Waleed A. Muhanna, 2004. "Capabilities, business processes, and competitive advantage: choosing the dependent variable in empirical tests of the resource‐based view," Strategic Management Journal, Wiley Blackwell, vol. 25(1), pages 23-37, January.
    12. Neil A. Thompson & Karen Verduijn & William B. Gartner, 2020. "Entrepreneurship-as-practice: grounding contemporary theories of practice into entrepreneurship studies," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 32(3-4), pages 247-256, March.
    13. Kuckertz, Andreas & Brändle, Leif & Gaudig, Anja & Hinderer, Sebastian & Morales Reyes, Carlos Arturo & Prochotta, Alicia & Steinbrink, Kathrin M. & Berger, Elisabeth S.C., 2020. "Startups in times of crisis – A rapid response to the COVID-19 pandemic," Journal of Business Venturing Insights, Elsevier, vol. 13(C).
    14. Nehal Marrai Rashad, 2018. "The Impact Of Entrepreneurial Marketing Dimensions On The Organizational Performance Within Saudi Smes," Eurasian Journal of Business and Management, Eurasian Publications, vol. 6(3), pages 61-71.
    15. Weaven, Scott & Quach, Sara & Thaichon, Park & Frazer, Lorelle & Billot, Ken & Grace, Debra, 2021. "Surviving an economic downturn: Dynamic capabilities of SMEs," Journal of Business Research, Elsevier, vol. 128(C), pages 109-123.
    16. David J. Teece, 2007. "Explicating dynamic capabilities: the nature and microfoundations of (sustainable) enterprise performance," Strategic Management Journal, Wiley Blackwell, vol. 28(13), pages 1319-1350, December.
    17. Morrish, Sussie C. & Jones, Rosalind, 2020. "Post-disaster business recovery: An entrepreneurial marketing perspective," Journal of Business Research, Elsevier, vol. 113(C), pages 83-92.
    18. David J. Teece & Gary Pisano & Amy Shuen, 1997. "Dynamic capabilities and strategic management," Strategic Management Journal, Wiley Blackwell, vol. 18(7), pages 509-533, August.
    19. Moren Lévesque & Ute Stephan, 2020. "It’s Time We Talk About Time in Entrepreneurship," Entrepreneurship Theory and Practice, , vol. 44(2), pages 163-184, March.
    20. Sadiku-Dushi, Nora & Dana, Léo-Paul & Ramadani, Veland, 2019. "Entrepreneurial marketing dimensions and SMEs performance," Journal of Business Research, Elsevier, vol. 100(C), pages 86-99.
    21. McKelvie, Alexander & Haynie, J. Michael & Gustavsson, Veronica, 2011. "Unpacking the uncertainty construct: Implications for entrepreneurial action," Journal of Business Venturing, Elsevier, vol. 26(3), pages 273-292, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Wohlgemuth, Veit & Wenzel, Matthias & Berger, Elisabeth S.C. & Eisend, Martin, 2019. "Dynamic capabilities and employee participation: The role of trust and informal control," European Management Journal, Elsevier, vol. 37(6), pages 760-771.
    2. Zhang, Yucheng & Hou, Zhongwei & Yang, Feifei & Yang, Miles M. & Wang, Zhiling, 2021. "Discovering the evolution of resource-based theory: Science mapping based on bibliometric analysis," Journal of Business Research, Elsevier, vol. 137(C), pages 500-516.
    3. Jim Andersén, 2023. "Green resource orchestration: A critical appraisal of the use of resource orchestration in environmental management research, and a research agenda for future study," Business Strategy and the Environment, Wiley Blackwell, vol. 32(8), pages 5506-5520, December.
    4. Xiaoming He & Yaqun Yi & Zelong Wei, 2019. "New product development capabilities in China: the moderating role of TMT cooperative behavior," Asian Business & Management, Palgrave Macmillan, vol. 18(2), pages 73-97, April.
    5. Betty Feng, Jing & Liu, Steven Y.H. & Anne Liu, Leigh, 2023. "Cognitive antecedents of EMNEs’ dynamic capabilities: A case study of global identity at Lenovo," Journal of Business Research, Elsevier, vol. 154(C).
    6. Byungjoo Paek & Joohyun Kim & Joonyoung Park & Heesang Lee, 2019. "Outsourcing Strategies of Established Firms and Sustainable Competitiveness: Medical Device Firms," Sustainability, MDPI, vol. 11(17), pages 1-28, August.
    7. Carlo Salvato & Roberto Vassolo, 2018. "The sources of dynamism in dynamic capabilities," Strategic Management Journal, Wiley Blackwell, vol. 39(6), pages 1728-1752, June.
    8. Yuan, Chun & Xue, Doudou & He, Xin, 2021. "A balancing strategy for ambidextrous learning, dynamic capabilities, and business model design, the opposite moderating effects of environmental dynamism," Technovation, Elsevier, vol. 103(C).
    9. Jan Oliver Schwarz & René Rohrbeck & Bernhard Wach, 2020. "Corporate foresight as a microfoundation of dynamic capabilities," Futures & Foresight Science, John Wiley & Sons, vol. 2(2), June.
    10. Razmdoost, Kamran & Alinaghian, Leila & Linder, Christian, 2020. "New venture formation: A capability configurational approach," Journal of Business Research, Elsevier, vol. 113(C), pages 290-302.
    11. Khan, Huda & Khan, Zaheer, 2021. "The efficacy of marketing skills and market responsiveness in marketing performance of emerging market exporting firms in advanced markets: The moderating role of competitive intensity," International Business Review, Elsevier, vol. 30(6).
    12. Glyptis, Loukas & Hadjielias, Elias & Christofi, Michael & Kvasova, Olga & Vrontis, Demetris, 2021. "Dynamic familiness capabilities and family business growth: A longitudinal perspective framed within management accounting," Journal of Business Research, Elsevier, vol. 127(C), pages 346-363.
    13. van Uden, Annelies & Knoben, Joris & Vermeulen, P.A.M., 2015. "Making Sense of Industry Characteristics as Drivers of Dynamic Capabilites," Other publications TiSEM fbb2a35d-c957-489b-b170-d, Tilburg University, School of Economics and Management.
    14. von den Driesch, Till & Eva Susanne da Costa, Maika & Christina Flatten, Tessa & Brettel, Malte, 2015. "How CEO experience, personality, and network affect firms' dynamic capabilities," European Management Journal, Elsevier, vol. 33(4), pages 245-256.
    15. Jolien Roelandt & Petra Andries & Mirjam Knockaert, 2022. "The contribution of board experience to opportunity development in high-tech ventures," Small Business Economics, Springer, vol. 58(3), pages 1627-1645, March.
    16. Zhang-Zhang, YingYing & Rohlfer, Sylvia & Varma, Arup, 2022. "Strategic people management in contemporary highly dynamic VUCA contexts: A knowledge worker perspective," Journal of Business Research, Elsevier, vol. 144(C), pages 587-598.
    17. Adomako, Samuel & Amankwah-Amoah, Joseph & Donbesuur, Francis & Ahsan, Mujtaba & Danso, Albert & Uddin, Moshfique, 2022. "Strategic agility of SMEs in emerging economies: Antecedents, consequences and boundary conditions," International Business Review, Elsevier, vol. 31(6).
    18. Xiao Zhang & Luqun Xie & Jiatao Li & Li Cheng, 2022. "“Outside in”: Global demand heterogeneity and dynamic capabilities of multinational enterprises," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(4), pages 709-722, June.
    19. Maria Rosa De Giacomo & Raimund Bleischwitz, 2020. "Business models for environmental sustainability: Contemporary shortcomings and some perspectives," Business Strategy and the Environment, Wiley Blackwell, vol. 29(8), pages 3352-3369, December.
    20. Anja Schulze & Stefano Brusoni, 2022. "How dynamic capabilities change ordinary capabilities: Reconnecting attention control and problem‐solving," Strategic Management Journal, Wiley Blackwell, vol. 43(12), pages 2447-2477, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:14:y:2022:i:20:p:13111-:d:940922. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.