Adaptive Capabilities of Entrepreneurs in Responding to Changing Consumer Preferences: A Qualitative Study on Culinary MSMEs in East Luwu and Palopo

Abstract

This study aims to explore and understand in depth the adaptive capabilities of entrepreneurs in responding to changes in consumer preferences in culinary MSMEs. The main focus is to identify the forms of adaptive, absorbive, and innovative capabilities applied by culinary MSME actors, as well as the factors that affect the effectiveness of these capabilities. The research uses a qualitative approach with a dual case study design. Data were collected through semi-structured in-depth interviews with 12 informants selected by purposive sampling from culinary MSMEs in East Luwu and Palopo. Data analysis used interactive thematic techniques with the help of NVivo software. Data validity was strengthened through source triangulation and member checking. The results of the study show that culinary MSMEs develop three dimensions of adaptive capabilities: (1) adaptive capabilities through menu adjustments, prices, and services; (2) absorptive capabilities through learning from market trends and social media; (3) innovative capabilities through the development of new products based on local wisdom and digitalization. However, these activities have not been managed comprehensively and sustainably. The main factors that support adaptive capabilities include digital literacy, entrepreneurial orientation, and community support. Conversely, limited capital, knowledge, and networks hinder responsiveness to changing consumer preferences. This research makes a theoretical contribution by integrating the concept of dynamic capabilities into the context of culinary MSMEs in Indonesia, as well as offering a conceptual model of adaptive capabilities that is relevant to the dynamics of post-pandemic consumer preferences.