Exploring key factors sustaining micro and small food, wine and hospitality firms through the COVID-19 crisis

PurposeThe purpose of this study is to contribute to the understanding of how micro and small firm owners/managers cope with an extreme event, as this has implications on how firms make decisions. The study considers self-efficacy and stakeholder theory as tools to gain more in-depth knowledge.Design/methodology/approachThe perspectives of owners/managers of 308 micro and small firms operating in the food, wine and hospitality industries in Italy, one of the most affected nations, were drawn through an online questionnaire.FindingsThe importance of determination, passion, family support and a sense of responsibility towards internal and external stakeholders emerged as fundamental factors helping firms confront the crisis. Five theoretical dimensions that help explain how firm owners/managers make decisions to safeguard their firms during the COVID-19 crisis are identified. Three of these, "motivational”, "stepping up” and "firm-based”, are directly associated with tenets of self-efficacy theory, and two, "human-moral” and "entity-based”, with stakeholder theory. Further complementing this second contribution, a theoretical framework underlining conceptual and practical implications is proposed.Originality/valueThe study delves into the challenges and survival of a key group of firms facing an extreme crisis. The identified dimensions provide useful conceptual depth and practical insights that, together, form part of a proposed framework. For instance, the "human-moral” dimension reflects upon aspects that have wider implications, notably, for firms' employees and the wider society.

Businesses and their community in times of COVID-19: a stakeholder theory approach

Purpose>The purpose of this study is to build an understanding of how firms operate under the COVID-19 crisis. Specifically, the study examines the significance of firms’ survival for their surrounding community, business–community relations during this severe situation and factors helping firms address this unprecedented challenge. The conceptual tenets of stakeholder theory are considered.Design/methodology/approach>A qualitative data collection approach was selected, with face-to-face and online interviews undertaken with owners and managers of 33 firms operating in Singapore.Findings>Firstly, while survival during the current unprecedented crisis is perceived to be most important for the firms’ employees, owners/managers also perceive domino effects on other companies working alongside the participating firms, as well as effects on clients and suppliers. Secondly, increased collaboration with industry, stronger partnerships with suppliers and business partners and closer relationships with staff are highlighted during the crisis. Thirdly, key factors helping firms’ survival in the initial year of the crisis included: a clear goal;a cohesive/nimble staff team;reinventing, adapting and being resilient;and family support and management support.Originality/value>This study contributes empirically and conceptually to the literature on firm adaptation and firm–community relationships during a severe crisis. Empirically, the findings and related dimensions provide practical guidance concerning the interdependence between firms and their stakeholders. Conceptually, the inductive analysis, which enabled the development of a theoretical framework, illustrates the relationships between the study’s emerging dimensions and those predicated by stakeholder theory, namely, the descriptive, instrumental, normative and managerial.