Just Survive or Thrive? Effect of Psychological and Organizational Resilience on Adoption of Innovative Strategies by Hospitality Sector Post Covid-19

Several small and medium-scale businesses within the hospitality sector have suffered significant losses due to the Covid-19 pandemic. We aim to understand the role of psychological and organizational resilience in the perceived negative impact, as well as adoption of coping strategies. Data was collected from 549 managers of small and medium-sized hotels across 28 states and three union territories in India. Structural equation methods were used to predict factors affecting adoption of four strategies, price discounts, cost-cutting, revenue generation and brand building. Organizational resilience was associated with tactical measures such as cost-cutting and price discounts. Psychological resilience of managers was associated with the adoption of strategic measures such as revenue generation and brand-building activities. Thus, we find that while organizational resilience enables survival of businesses, psychological resilience helps them to thrive. Innovative strategies and visionary leadership builds resilient businesses that endure in the long run.