Proactive and reactive strategies deployed by restaurants in times of crisis: Effects on capabilities, organization and competitive advantage
International Journal of Contemporary Hospitality Management
ISSN: 0959-6119
Article publication date: 12 October 2015
Abstract
Purpose
This study aims to examine the development of dynamic capabilities and their effect on the competitive advantage of restaurants in 2009, one year after the beginning of the global financial crisis.
Design/methodology/approach
The restaurants were personally surveyed to discern the importance of proactive and reactive strategies for the organization. The resulting two organizational effects – cost cutting and the development of dynamic capabilities – were tested for their influence on competitive advantage.
Findings
The findings show that both proactive and reactive strategies reduce costs; however, only proactive strategies develop dynamic capabilities that improve competitive advantage.
Research limitations/implications
The conclusions are drawn from a small sample of restaurants in Madrid, the capital of Spain. Given that Madrid enjoys a higher standard of living and greater business expenditures than other cities, the results may not be generalizable to the rest of the country or to other southern European capitals.
Practical implications
Managers must use proactive strategies for companies to survive during times of crisis. A focus on proactive strategies will improve a company’s competitive position.
Social implications
Policy makers should support the development of proactive strategies and provide an adequate infrastructure of counseling and network creation.
Originality/value
To the best of our knowledge, no previous research specifically analyzes both the type of strategy deployed and its subsequent effect on dynamic capabilities and the consequences of the strategy on competitive advantage during a financial crisis.
Keywords
Citation
Alonso-Almeida, M.d.M., Bremser, K. and Llach, J. (2015), "Proactive and reactive strategies deployed by restaurants in times of crisis: Effects on capabilities, organization and competitive advantage", International Journal of Contemporary Hospitality Management, Vol. 27 No. 7, pp. 1641-1661. https://doi.org/10.1108/IJCHM-03-2014-0117
Publisher
:Emerald Group Publishing Limited
Copyright © 2015, Emerald Group Publishing Limited