Entrepreneurial decision-making and tourism resilience: Organisational crisis responses

Abstract

Orientation: By drawing on chaos theory and resilience theory, this study aims to identify entrepreneurial decision-making strategies in response to crises in Lalibela, Ethiopia.
Research purpose: The present study aims to examine the complex entrepreneurial decision-making processes in the tourism industry, particularly in the context of economic and political crises within Ethiopia.
Motivation for the study: This study was motivated by the need to understand how entrepreneurs in Ethiopia’s tourism industry navigate the challenges posed by ongoing economic and political crises.
Research design, approach and method: The study drew on responses from 43 semi-structured interviews with entrepreneurs in the tourism industry. The research employed thematic qualitative analysis to investigate adaptive resilience, negotiation power in entrepreneurship, decision-making considerations in tourism and the impacts of crises.
Main findings: The findings of this study highlight the key aspects of adaptive resilience in the Ethiopian tourism industry, including human resource management, cash flow management and exploring new business opportunities. The study identifies three key pathways for entrepreneurial decision-making during crises: crisis conditions, enterprising operations and focus, and enterprising capabilities.
Practical/managerial implications: The study focuses on resilience, emphasising crucial strategies that promote business continuity and growth. It highlights the vital importance of entrepreneurial decision-making at both the organisational and operational levels during crises. Moreover, it demonstrates how tourism entrepreneurs base their decisions on their organisation’s specific characteristics and market orientation.
Contribution/value-add: The study advances theoretical understanding by uncovering organisational-level adaptive resilience during crises. It contributes to theory by enhancing the comprehension of entrepreneurial decision-making in times of crisis.