Business model innovation: Sensemaking in organizations during the COVID-19 pandemic

ABSTRACT

In the 4th quarter of 2019, a new coronavirus (SARS-CoV-2) was detected in Wuhan, China. The virus spread to more than 118,000 cases and caused 4,291 deaths in 114 countries before the World Health Organization (WHO) declared it a pandemic in February 2020 (WHO, 2020). Amidst the disjointed response to the pandemic, many organizations were forced to close permanently, other organizations survived, and some prospered. This study examines organizational decision-making around business model innovation during the early phase of the pandemic. Eight semi-structured interviews were conducted with key decision-makers in four organizations. These organizations operated in the hospitality, medical technology, financial services, and professional management development training industries. This study examined how organizational leaders made sense of challenges and took action, in order to reveal insight into business model innovation. The main findings of this study show how business model innovation occurred in organizations to meet three key challenges COVID-19 health and safety expectations of stakeholders, navigation of the financial uncertainties, and attempted improvement of environmental, social, and governance performance (ESG). Leaders within the organizations tended to engage in similar sensemaking about the challenges during the pandemic and business model innovations. (PsycInfo Database Record (c) 2022 APA, all rights reserved)