Attention to social issues and CEO duality as enablers of resilience to exogenous shocks in the tourism industry

Abstract

The tourism literature recognises the importance of resilience to crises, but little is known about how tourism firms become resilient. In particular, the use of corporate social responsibility (CSR) as a risk-reduction strategy has been identified as an important gap in the literature. Aiming to fill this gap and adopt a more integrative view, this study examines complementarities between tourism firms' attention to social issues and corporate governance mechanisms in the context of the COVID-19 pandemic. Supported by the attention-based view and stewardship theory, the findings show that firms' attention to social issues and CEO duality might be associated with higher degrees of firm resilience. If firms have a CSR committee, the presence of CEO duality might leverage firms’ attention to social issues. The findings suggest that corporate governance should not restrict executive flexibility when tourism firms face exogenous shocks if firms pay attention to social issues.