The long road to adaptation: Micro and small hospitality firms after the GFC

Abstract

This study examines the journey of micro and small firm owners/managers of hospitality firms through the global financial crisis. This journey includes measures of firm success and performance supporting firms in the aftermath of the event. The study draws on a sample of mainly hospitality firms in Greece and Cyprus, and considers conceptual tenets of the dynamic capabilities framework. Key dimensions associated with firm success and firm performance following the crisis were revealed. For instance, the 'value' dimension emerged through measures of financial management, intrinsic, knowledge-based, strategic, and by adding value to consumers' experience. Furthermore, strong firm performance was mainly perceived as a result of learning from mistakes or managing time efficiently, while counting on government or financial institutions was associated with poor firm performance. The study has various practical and theoretical implications, including through the proposal of a conceptual framework, where the findings and dynamic capabilities approach converge.