PurposeThe purpose of this paper is to show how different business model innovations (BMIs) help small and medium-sized enterprises (SMEs) in the food and beverage industry to navigate turbulent and uncertain environments such as the coronavirus economic crisis (COVID-19).Design/methodology/approachThe paper adopts an in-depth case study approach and uses a dynamic business modeling (DBM) approach to analyze how a pioneer craft brewery in Switzerland implemented innovative actions undertaken during the COVID-19 pandemic.FindingsThe paper offers a novel framework describing three processes helping SMEs to implement innovations in their business model (BM) to respond in an effective way to crises, such as the COVID-19 pandemic. The first process refers to SMEs' ability to leverage readily available resources and allows SMEs to rapidly use their current knowledge to react to the changing environment amid the crisis. The second process points at SMEs' ability to transform existing resources into novel products or solutions. Finally, by mobilizing distant resources from their network, SMEs can obtain new resources and knowledge that facilitate the implementation of major changes in their BM.Originality/valueUnlike previous studies, this research adopts a cause-and-effect perspective to make explicit how SMEs' BM changes affect strategic resources, key drivers and processes, thereby impacting performance. The analysis of the multiple reinforcing and balancing feedback loops resulting from the DBM approach can help SME entrepreneurs learn how and what changes are required in their BM to effectively face turbulent times, such as the COVID-19 crisis. From such an analysis, it emerged that the ability of SMEs to effectively implement innovations amid a crisis depends in large part on their collaborations with business partners and their ability to use and transform internal and external knowledge. In addition, as the future evolution of the COVID-19 crisis is still ongoing and uncertain, this study offers a unique perspective for SMEs in the food and beverage industry as the situation unfolds rather than after the fact.

Geographic communities are often thought to support new ventures, particularly when newcomers are able to replicate incumbents’ characteristics. This paper elaborates on the conditions under which geographic communities may hinder the action of newcomers. Particular attention is dedicated to the case in which incumbents’ identities build on community traditions and rely on strong connectedness with community inhabitants, as these factors are difficult for newcomers to replicate. We explore this question within the context of market entries in the Franconian microbrewery industry. The results of our empirical analysis confirm that geographic communities exert an unfavorable effect on the entry of new organizations when incumbents are deeply attached to the community. Conversely, when incumbents relate poorly to the community, residential stability within the community displays a positive effect on founding.

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