Exploring key factors sustaining micro and small food, wine and hospitality firms through the COVID-19 crisis

Purpose: The purpose of this study is to contribute to the understanding of how micro and small firm owners/managers cope with an extreme event, as this has implications on how firms make decisions. The study considers self-efficacy and stakeholder theory as tools to gain more in-depth knowledge. Design/methodology/approach: The perspectives of owners/managers of 308 micro and small firms operating in the food, wine and hospitality industries in Italy, one of the most affected nations, were drawn through an online questionnaire. Findings: The importance of determination, passion, family support and a sense of responsibility towards internal and external stakeholders emerged as fundamental factors helping firms confront the crisis. Five theoretical dimensions that help explain how firm owners/managers make decisions to safeguard their firms during the COVID-19 crisis are identified. Three of these, “motivational”, “stepping up” and “firm-based”, are directly associated with tenets of self-efficacy theory, and two, “human-moral” and “entity-based”, with stakeholder theory. Further complementing this second contribution, a theoretical framework underlining conceptual and practical implications is proposed. Originality/value: The study delves into the challenges and survival of a key group of firms facing an extreme crisis. The identified dimensions provide useful conceptual depth and practical insights that, together, form part of a proposed framework. For instance, the “human-moral” dimension reflects upon aspects that have wider implications, notably, for firms' employees and the wider society