Health-based crisis: how do firms weather the storms using the structural hole-bridging strategy?

Abstract

Purpose Drawing on the structural hole-bridging perspective of network theory, this paper aims to examine the adaptation strategies undertaken by housing industry actors following the recent pandemic. Design/methodology/approach A qualitative case study was adopted as the research methodology for this research. Data collected through online interviews involving 20 participants was used as primary data, while document analysis (both online and printed documents) was used as secondary data. The interviews were guided by the visual vignette method. Findings This study’s findings indicate that a health-based crisis like COVID-19 triggers housing developers to act outside their comfort zones. They undertake arbitrage and collaborative brokerage strategies to cope with business uncertainties. This study revealed the contextual embedding of the owner-occupier market (consumer market) and the investor market (business market). This study also revealed that firms that aggressively located structural holes and built new relationships in B2C and B2B markets before the COVID-19 pandemic were well-equipped to face turbulent times. Practical implications The innovative strategies that housing developers adopt are transferable and applicable to other industries and countries. Therefore, awareness of these strategies is essential for industry practitioners, especially those badly hit by health-based crises. Originality/value To the best of the authors’ knowledge, this is the first empirical study that combines relationship management, structural holes, the housing market and their implications for crisis adaptation. This study examined the grossly understudied phenomenon of demand for housing, which is a durable good, during a turbulent time. The findings of this study provide beneficial guidance for firms, buyers and policymakers facing COVID-19 and/or other similar crises.