A Dynamic Capabilities Approach to Business Model Innovation in Times of Crisis

Abstract

ABSTRACT This study explores how tourism entrepreneurs change their business models during a crisis. By adopting dynamic capabilities as integral to business model change, this qualitative study explores how entrepreneurs change business models to meet a crisis, and proposes a taxonomy of important entrepreneurial practices underlying dynamic capabilities. This study empirically examines seven small companies operating in the nature-based tourism industry in Norway. Focusing on dynamic capabilities, whether innovative or adaptive, the findings suggest 12 dynamic capability-based entrepreneurial practices that are categorized as resource-, market, and technology-related practices. This study contributes to the literature by integrating business model innovation and dynamic capabilities in tourism crisis management.