Polycentric Governance in Crisis:

Analyzing Tourism MSE Adaptation and Environmental Sustainability Through the IAD Framework

Abstract

This study employs the Institutional Analysis and Development (IAD) framework to examine the resilience and recovery strategies of tourism micro and small enterprises (MSEs) in the Philippines during the COVID-19 pandemic. Through comparative case studies of two eco-tourism destinations - Pagsanjan and Cavinti - the research investigates how institutional arrangements shaped MSE responses to unprecedented disruptions while maintaining commitments to environmental sustainability. Drawing on semi-structured interviews with 30 stakeholders and analysis of policy documents, the study reveals three critical elements of institutional resilience: flexible multi-level governance arrangements that enabled rapid adaptation of rules and practices; robust community attributes, particularly social capital and local leadership, that facilitated innovative collective responses; and effective coordination mechanisms among government agencies, businesses, and community groups that supported both immediate crisis management and longer-term sustainability goals. The findings advance theoretical understanding of how polycentric governance arrangements can help reconcile competing priorities during crisis periods, while also generating practical insights for enhancing the resilience of tourism-dependent communities. The study demonstrates that institutional frameworks maintaining focus on environmental stewardship through collaborative resource management initiatives can effectively balance recovery imperatives with sustainability objectives. These insights contribute to both scholarly discussions of institutional responses to crisis and practical approaches to building more resilient and sustainable tourism systems in developing country contexts.