Domain-based ambidexterity for managing a dual business model in the hospitality industry in the midst of COVID-19 pandemic: an exploratory study

Abstract

Purpose This study aims to analyse how a hotel company manages ambidexterity when operating different business models in different markets located in the same country. Design/methodology/approach This research was conducted using a qualitative case study, and the subjects were selected using the theoretical sampling technique. A corporation managing two hotel business units located in the same city but operating different business models – a premium and a low-cost business model – were selected as subjects. Findings The empirical evidence revealed that an ambidextrous business model can be realized through integration or separation of appropriate domains of business activities. The empirical findings further showed that exploitations are easier to integrate than explorations. Practical implications The authors found that firms using structural separation for managing premium and low-cost business models can avoid market cannibalism and achieve synergies between different business models if business model ambidexterity is well managed. Originality/value This study extends research in the area of ambidexterity and business models. It responds to calls to examine how firms using structural separation implement business model ambidexterity in practice, particularly in service sectors. By analysing the details of activities within the business model, the authors advance the understanding of which domains are suitable for an integration or separation approach.