Learning from Failure: Building Resilience in Small- and Medium-Sized Tourism Enterprises, the Role of Servant Leadership and Transparent Communication

Abstract

Understanding how small- and medium-sized enterprises develop and foster resilience in their employees is critical to better adapt to and recover from challenges. Yet, how such a process is conducted is not well-understood in literature. Integrating the literature from the social exchange theory and the disaster resilience framework, this research examines the effects of servant leadership (SL) and transparent communication (TC) on employees’ capacity for resilience (learning from failure, hardiness, and optimism) and their adaptive performance during/post the COVID-19 crisis. A total of 880 employees in restaurants and travel agencies were surveyed. The results reveal that the effects of SL and TC on employees’ adaptive performance was fully mediated by employees’ capacity for resilience, specifically learning from failure.