Innovative behavior of tourism micro-firms in the time of Covid-19 : Exploring the major factors that drive tourism innovations amid Covid-19 in a micro-firm context within the Swedish tourism sector

Abstract: This study investigates tourism micro firms’ innovative behavior amid the time of global pandemic Covid-19 within the geographical context of Dalarna County in Sweden. Moreover, this study explores the major factors that drive tourism micro firms for innovation during the pandemic. A qualitative approach is adopted to explore and understand tourism firms’ behavior from their perspectives. The results reveal that all tourism micro firms that participated in this research have adopted some changes during the pandemic. However, most of these changes are non-technological and incremental with high market orientation. When it comes to the driving factors behind tourism micro firms’ innovative behaviors, this study finds that tourism micro firms’ innovative behaviors are largely influenced by owner-managers’ personal traits, and the human capitals that tourism firms possess. Besides, the development stage of the firm and the industry where the firm is in can also affect micro firms’ decisions on innovations. In addition, the study identifies that tourism trends stimulated during the pandemic and the widespread ICT can trigger tourism innovation if tourism firms capture the opportunity and take actions on it. Findings of this study can help the regional government and destination management organizations to have a closer look at tourism micro firms’ business behavior during the pandemic, and to have a better understanding of the cause and means of micro firms’ innovation activities so as to provide better support and planning to help them to get back to the new normal.