How hotels adjust technology-based strategy to respond to COVID-19 and gain competitive productivity (CP): strategic management process and dynamic capabilities

Abstract

Purpose

The purpose of this study is to explore how hotels evolve their dynamic capabilities to adjust their technology-based strategy to improve performance and to gain competitive productivity (CP) during the COVID-19 pandemic and in the aftermath.

Design/methodology/approach

In-depth interviews with hoteliers were conducted to unveil their dynamic capabilities amid the pandemic as regard adjustments and performance of self-service technology (SST)-based strategies. Thematic analysis was used to analyze the data.

Findings

Data analysis revealed four types of dynamic capabilities (i.e. sensing, learning, integrating and coordinating capabilities). Equipped with these capabilities, hotels made minor adjustments to their SST strategies. In general, during an economic downturn, hotels refrained from introducing new SSTs. SSTs introduced before the pandemic were used more frequently and received enhanced customer feedback. The findings further revealed that the factors influencing hotels’ application of SSTs before and after the outbreak of COVID-19 remained similar.

Originality/value

This is the first research integrating CP, dynamic capabilities and strategic management process to explain how hotels adjust technological strategies to recover in a suddenly changed environment. Such a framework enables scholars and practitioners from content-oriented and process-oriented perspectives to make quick but sound strategic management decisions in adapting to turbulent environments. This timely study enriches the expertise of using technology as a recovery strategy and contributes to future research on the practical application of SSTs and crisis management.

Citation

Liu, C. and Yang, J. (2021), "How hotels adjust technology-based strategy to respond to COVID-19 and gain competitive productivity (CP): strategic management process and dynamic capabilities", International Journal of Contemporary Hospitality Management, Vol. 33 No. 9, pp. 2907-2931. https://doi.org/10.1108/IJCHM-10-2020-1143