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The multifaceted role of digital transformation in restaurant resilience

delete2026-02-03
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PRE
AI
W
Woojin Lee
S
SooCheong (Shawn) Jang
H
Hong Soon Kim
DOI:10.1108/ijchm-05-2025-0690delete
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Abstract

Abstract

En 中文
<jats:sec> <jats:title>Purpose</jats:title> <jats:p>This study aims to investigate the impact of digital transformation (DT) on organizational resilience in the restaurant industry. By examining DT across front-of-house (FoH) and back-of-house (BoH) operations, this study analyzes how DT shapes resilience in terms of revenue, profitability and firm value.</jats:p> </jats:sec> <jats:sec> <jats:title>Design/methodology/approach</jats:title> <jats:p>DT is measured using text analysis of firm’s 10-K reports, combined with financial data from COMPUSTAT. Difference-in-differences and two-way panel regressions are used to examine resilience in terms of stability and flexibility.</jats:p> </jats:sec> <jats:sec> <jats:title>Findings</jats:title> <jats:p>FoH DT significantly enhances both revenue stability and flexibility. BoH DT has a significant impact on profitability stability, and overall DT adoption enhances firm value stability during the pandemic.</jats:p> </jats:sec> <jats:sec> <jats:title>Practical implications</jats:title> <jats:p>Managers should leverage FoH DT to stabilize and accelerate revenue recovery during demand shocks and use BoH DT to reinforce cost-based stability, while clearly communicating DT initiatives to investors to enhance recognition of resilience value.</jats:p> </jats:sec> <jats:sec> <jats:title>Originality/value</jats:title> <jats:p>This study conceptualizes DT as a dual-function capability that simultaneously supports operational stability and adaptive flexibility, revealing differentiated DT effects across financial outcomes in the restaurant industry.</jats:p> </jats:sec>
Keywords:
digital transformation
organizational resilience
restaurant industry
revenue stability
firm value

Journal

I
International Journal of Contemporary Hospitality Management
IF:
9
Papers:
40
Citations:
0

Organization

P
purdue university
Scholars:
1.5K
Papers: 749
Citations: 1
U
university of delaware
Scholars:
1.6K
Papers: 762
Citations: 0
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