Innovation and creativity in a time of crisis: A perspective of small tourism enterprises from an emerging destination

Abstract

Disasters and crises do not only affect tourism enterprises detrimentally but can also prompt business innovation and creativity. This positive outlook is under-studied although it can aid in understanding the speed of business recovery, especially among smaller tourism enterprises in remote and resource-scarce destinations where external assistance is limited. This study examines innovation and creativity among tourism entrepreneurs in Lombok (Indonesia), an emerging destination in Southeast Asia, through the prism of two crises, the 2018 earthquake and COVID-19. Interviews with small-sized tourism entrepreneurs (n = 21) reveal the innovative dynamic capability as a critical factor for crisis-driven business innovation. This capability is determined by generic factors, such as social capital and knowledge, but also destination-specific factors, such as local cultural values. The important role of time is also showcased: prolonged crises encourage tourism entrepreneurs to innovate sooner, while short-lived disastrous events prescribe a cautious approach to innovation.