Adapting to the plight of the pandemic: Examining the effect of digital transformation and dynamic capabilities on organizational performance through business model innovation of Bbq Shack, Kandle Cafe, and Sourdough Cafe

The pandemic has brought obstacles for businesses globally to overcome. Dynamic capabilities of businesses were tested and the new economic environment has lead organizations to practice digital transformation, innovate the business model, and generate organizational performance. Previous researches cover organizations in times of crisis and such but, none are as unique as the current pandemic. The proponents observed small food enterprises in Quezon City and San Juan City, Philippines. Interviews and focus group discussions were held with Sourdough Cafe, BBQ Shack, and Kandle Cafe. The data was individually and cross-case analyzed. It was evident that each participant had their own unique situation, and different dimensions of their dynamic capabilities were tested. Our findings showed, that businesses prioritized digitalizing their business model, and majority added different service and products offerings to help business stay afloat. Every participant experienced an innovation in their business model and are now left with an appropriate business model for today’s environment. It was recommended that the respondents were to exercise their dynamic capabilities and make advancements in digital transformation by adding new services, workers, training, and so on in order to further innovate their business model and increase organizational performance