Effectuation and causation configurations for business model innovation: Addressing COVID-19 in the gastronomy industry

• Published in: International journal of hospitality management Vol. 95; p. 102896
• Main Authors: Harms, Rainer, Alfert, Carina, Cheng, Cheng-Feng, Kraus, Sascha
• Format: Journal Article
• Language: English
• Published: England Elsevier Ltd 01.05.2021; The Authors. Published by Elsevier Ltd
• Subjects: Business model innovation; Configurations; COVID-19; Effectuation; fsQCA; Gastronomy entrepreneurs; COVID-19; Business model innovation; fsQCA; Configurations; Gastronomy entrepreneurs; Effectuation
• ISSN: 0278-4319; 1873-4693
• DOI: 10.1016/j.ijhm.2021.102896

•Business model innovation is a fruitful reaction to a crisis situation for gastronomy entrepreneurs.•Effectuation and causation can lead to business model innovation.•Innovators use effectuation and causation components in complex configurations.•Innovative gastronomy entrepreneurs should include these in their strategic orientation/action repertoire. The gastronomy sector is among those that are hit particularly hard by a loss of customers and regulatory uncertainty of the COVID-19 crisis. When established ways of doing business become almost impossible, business model innovation (BMI) is a possible reaction to this high uncertainty level. Effectuation and causation are decision-making logics that may lead to BMI and help a firm navigate uncertainty. We investigate configurations of causation and effectuation components associated with a high BMI level during the first wave of COVID-19. We perform fuzzy-set-qualitative comparative analysis (fsQCA) on a sample of 143 gastronomy entrepreneurs in Münster county, Germany. We identify two paths that lead to a high BMI level: “the planning soloist” and “the hedging networker.” We conclude that innovators among the gastronomy entrepreneurs use effectuation and causation components in complex configurations.