Purpose: This qualitative research aimed to explore the relationship between adaptive dynamic capabilities and resident loyalty formation among African-ethnic restaurants (AERs) during COVID-19 in East Africa. Design/methodology/approach: Anchored on the dynamic capabilities perspective, the study uses eight case studies to obtain data based on restaurant owner-managers' lived experiences. Findings: The paper presents six factors: (1) sensory quality promise, (2) service personalization declaration, (3) openness of technology adoption, (4) healthy food and safety assurance, (5) authenticity pledge and (6) diversity provision as prerequisites for resident loyalty formation. The findings suggest adaptive capacity as an appropriate alternative for stimulating resident loyalty formation during difficult times. Practical implications: The findings help managers in formulating strategies that facilitate residents' display of willingness to revisit and/or recommend others. The local restaurants can now keep modifying and adjusting their practices and processes so as to exhibit the ability to handle customer unique demands during difficult times. Originality/value: Through this work, a model of adaptive capabilities as enablers of resident loyalty formation is proposed, hence contributing the existing body of knowledge. © 2021, Emerald Publishing Limited.
Resident loyalty formation for the survival of African-ethnic restaurants during COVID-19: the adaptive capabilities logic