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

Muhammad Yunus Amar, Alim Syariati, Ridwan Ridwan and Rika Dwi Ayu Parmitasari
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Muhammad Yunus Amar: Management Department, Universitas Hasanuddin, Makassar 90245, Indonesia
Alim Syariati: Management Department, Universitas Islam Negeri Alauddin Makassar, Gowa 92118, Indonesia
Ridwan Ridwan: Economics Department, Universitas Janabadra, Yogyakarta 55271, Indonesia
Rika Dwi Ayu Parmitasari: Management Department, Universitas Islam Negeri Alauddin Makassar, Gowa 92118, Indonesia

Risks, 2021, vol. 9, issue 11, 1-18

Abstract: The effects of COVID-19 on tourism are irreversible, with potential reductions in income, job losses, shifting working landscapes, and visible health-related fears. These adversities are reinforced in the hospitality business, particularly for hotels, the income streams of which rely on individual movements. This study investigates the process undertaken by the hotel industry in Indonesia to face the current challenges, particularly in terms of the dynamic capabilities possessed by hotel businesses. This construct discusses the potentiality of maximizing existing resources and its impact on innovation norms to leverage hotel dynamics. A total of 329 hotel managers responded to the survey, and the data were finalized by employing PLS-SEM. The findings primarily support the hypothesized direct relationships, but refute the presence of indirect relationships. The results amplify how past investments in sustainable resources are easily deployed assets during COVID-19 and create a welcoming environment for dynamic innovation among hotels during periods of change.

Keywords: dynamic capability; existing resources; innovation norms; hotel; strategy; Indonesia (search for similar items in EconPapers)
JEL-codes: C G0 G1 G2 G3 K2 M2 M4 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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