The dynamic capabilities of AccorHotels in Brazil

Abstract

Purpose

AccorHotels commenced operations in Brazil in the 1970s. Since then, the company has experienced several economic crises in that country and almost gone bankrupt. Using the dynamic capabilities (DCs) framework, the purpose of this paper is to understand how the company managed to maintain its competitive advantage in such a turbulent and competitive environment over the years. The study sought to identify the main DCs developed in the company between 1974 and 2018 and understand how they were developed based on the analysis of their key microfoundations.

Design/methodology/approach

The study adopted a qualitative approach. The data were collected in 22 interviews, including with top management and the founder of the hotel chain in Brazil. The interviews took place in three different years, 2005, 2016 and 2018. The investigation is supported by content analysis of the data.

Findings

The four main DCs identified at AccorHotels were capability to innovate; qualification capability; renewal capability; and capability to manage threats and mitigate risks. In addition to shedding light on the origins of the DCs, the importance of microfoundations is discussed.

Research limitations/implications

The model presented in the theoretical framework and results should not be generalized, since this limitation is inherent to qualitative research. On the other hand, there are academic implications relevant to the development of the DCs in the service sector by revealing four capabilities that can enable sustainable competitive advantage.

Practical implications

The results provide business practitioners in the hotel sector with information about DCs and microfoundations to face the external and competitive environment throughout its trajectory. Specifically, it shows the way to develop the capabilities that can collaborate in the exploration of opportunities.

Social implications

Executives have the responsibility to make appropriate strategic decisions to stay in the market, meeting the expectations of stakeholders. However, the demand is not only financial, employees of tourism businesses are part of family units. Given this context, society gains when studies of this type are developed, because from the socialization of the results obtained from Accor Hotels, leaders can make organizations thrive and foster the professional development of workers, and tourism industry in general.

Originality/value

This is the first study of DCs undertaken with an international hotel chain. In addition, studies on DCs in the tourism industry are still scarce, and Brazil is an environment where hotels have shown steady growth.

Citation

Costa, J.H.d.P. and Pereira, Y.V. (2020), "The dynamic capabilities of AccorHotels in Brazil", Journal of Hospitality and Tourism Insights, Vol. 3 No. 2, pp. 253-269. https://doi.org/10.1108/JHTI-03-2019-0034