25 May 2021

Research pick: Portuguese business lessons in COVID-19 - "Exploring the role of organisational innovation in the time of COVID-19"

The COVID-19 pandemic has wrought much grief the world over. It has led to many deaths, hospitalizations and ongoing illness in the form of long-covid. It has also changed normal life and work for millions of people in unimaginable ways. New research published in the International Journal of the Business Environment, has looked at the role of organisational innovation during the pandemic.

André Rocha of the Polytechnic Higher Institute of Gaya and Fernando Almeida of the University of Porto, Portugal, point out that as with many other nations many companies had to temporarily close and lay off workers. In parallel with lockdowns and similar limits on normal life, many companies have innovated organizationally in response to the pandemic, with a view to meeting the old and new needs of people during this crisis.

The team has carried out a case study of seven companies in Portugal to see how they have each risen to the challenge presented by the pandemic. They have found that both internal and external innovation stand out and that there have been very diverse approaches to innovation. Moreover, many of the innovations have been in procedures rather than structural innovations, which have had much less influence.

“The structural measures typically proposed by governments for crisis management are no longer feasible because of the need to seek immediate response tools that incorporate simplicity and practicality dimensions,” the team writes. They add that the various measures implemented by Portugal and many other countries to combat COVID-19, such as closing schools, social distancing and limiting people’s movements, the closure of museums, monuments, and national palaces as well as hospitality and entertainment have had a profound effect on Portuguese society, and societies the world over.

The case studies show how organizational innovation rather than structural changes offer an alternative response to the pandemic and have been demonstrably successful for those companies implementing such change. The lessons the case studies offer might be applied in other nations to good effect.

Rocha, A. and Almeida, F. (2021) ‘Exploring the role of organisational innovation in the time of COVID-19’, Int. J. Business Environment, Vol. 12, No. 2, pp.170–185.

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