Adaptation of small and medium-sized enterprises in the food sector during the pandemic: Position the brand as part of the community

Abstract

This study explains how small and medium-sized enterprises (SMEs) in the food sector adapted during the pandemic. In-depth, semi-structured, hybrid interviews were conducted with fifteen SME owners in the food sector in Bandung, Indonesia. The study describes five business adaptation strategies using service-dominant logic (S-DL) and structural-functionalism theory: (a) relationship adaptation with suppliers and landlords, (b) employee adaptation, (c) product and sales adaptation, (d) operations adaptation, and (e) promotion adaptation. Findings show a holistic view of actor involvement in the business adaptation process linked to altruism, in which the business and all actors (i.e., suppliers, landlords, customers, employees, government, online delivery man, society, etc.) act and respond conjointly as a form of collective survival. The business ecosystem of the food sector covers both transactional relationships and emotional relationships. This study contributes to the literature and practice of SMEs in the food sector in finding effective strategies when facing a pandemic.