Entrepreneurial Resilience During COVID-19: The Survival of Small Businesses Using Dynamic Capabilities Theory and Effectuation Theory

Author:

Xueyun ZhongORCID,Yongyu Lu,Hizam-Hanafiah MohdORCID,Yazid Zaleha,Muhamad Nur Saadah

Abstract

Objectives: This study explores how Bali's sport tourism stakeholders used dynamic capabilities to mitigate COVID-19's impacts. Given Bali's reliance on sport tourism, understanding recovery is crucial. The research aims to identify pandemic challenges, explore strategic recovery plans, and understand how entrepreneurs leverage dynamic capabilities for survival and growth.   Theoretical Framework: The study integrates dynamic capabilities and effectuation theories with entrepreneurial resilience. Dynamic capabilities involve adapting, learning, and transforming activities to meet changing environments. Effectuation theory focuses on leveraging available means and making decisions based on emerging opportunities. Together, these theories offer a comprehensive understanding of adaptation strategies among Bali's sport tourism entrepreneurs.   Method: Using a qualitative design, the research conducts semi-structured interviews with 10 small and medium-sized enterprises (SMEs) in Bali's sport tourism sector.   Results and Discussion: Findings highlight resilience's role in fostering adaptability, motivation, and a learning mindset. An activity-based model for dynamic capabilities focuses on integration, learning, and transformation with employee and customer involvement. Leveraging dynamic capabilities, assessing opportunities with available means, and using innovative technologies are crucial for strategic decisions in uncertain environments.   Research Implications: This study contributes to the entrepreneurship and strategic management literature. Integrating dynamic capacities, effectuation theories, and entrepreneurial resilience provides useful insights for academics, policymakers, and practitioners. The work offers practical solutions for resilience in dynamic contexts.   Originality/Value: This study enhances understanding of how Bali’s sport tourism entrepreneurs adapt to a transformed entrepreneurial ecosystem. It serves as a valuable resource for developing resilient strategies for future disruptions.

Publisher

RGSA- Revista de Gestao Social e Ambiental

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