Expanding entrepreneurial solution spaces in times of crisis: Business model experimentation amongst packaged food and beverage ventures

Abstract

Research summary Times of crisis require entrepreneurial responses to mitigate adverse effects and address new opportunities. This study focuses on how packaged food and drink entrepreneurs in Finland took action to create and capture new value during the Covid-19 crisis. Examining 844 social media posts of 66 ventures between March and May 2020 and interviewing 17 of these ventures, we found ventures to experiment with new business model variations, which not only expanded their set of solutions directly, but resulted in action-based learning leading to longer-term changes and increased capabilities for subsequent value creation. Furthermore, collaborative experiments and prosocial support increased the solution space through developing the capabilities of the ecosystem. Managerial summary The global lockdown measures in response to the coronavirus pandemic have disrupted supply, production, sales and consumption. Facing these constraints, entrepreneurs can respond quickly and experiment to create new liquidity and opportunities. Our analysis of packaged food and beverage entrepreneurs in Finland during the crisis shows how entrepreneurs leverage existing resources and acquire new ones to create new offerings, operations and partnerships. These initial actions serve as experiments to learn from in creating and revising business models, promoting a virtuous cycle of further action and expanding potential future solutions accessible to entrepreneurs. Importantly, opportunities available to the venture expand through both venture specific learning and through supporting other actors in the ecosystem.

Creative reconstruction: a structured literature review of the early empirical research on the COVID-19 crisis and entrepreneurship

“…In this particular crisis, many entrepreneurial opportunities related to health but Ebersberger and Kuckertz ( 2021 ) analyzed a sample of COVID-19 induced innovations, identifying at least nine additional external drivers of relevant structural changes indicating that opportunities extend beyond the health related. Any enterprise experimenting with new business models to address the effects of a crisis would be wise to note that entrepreneurial opportunity comes with new value creation rather than with adjusted or new revenue models that are based on established value creation (Björklund et al 2020 ). Remarkably, in terms of opportunities for social and sustainable entrepreneurship, the empirical COVID-19 literature illustrates a clear discrepancy.…”

“…A bricolage response to adversity is essentially opportunity-focused, in that it is not defensive but proactive. Björklund and colleagues ( 2020 ) convey the positive effects of such iterative, hustling, and bricolage-oriented approaches. Opportunity-seeking through business model experimentation during a pandemic leads to new internal capabilities and even new relational and ecosystem capabilities.…”

“… Resilience Primary quantitative Mexico 203 students Univariate statistical analysis Reflection helps to develop an entrepreneurial mindset even in online education Beland et al ( 2020 ) What are the effects of COVID-19 on entrepreneurs? Uncertainty Secondary quantitative Canada Canadian Labor Force Survey: 56,000 households and 100,000 individuals Univariate statistical analysis A sharp decline in entrepreneurial activity with the first lockdown Björklund et al ( 2020 ) How can entrepreneurs experiment with new opportunities and business models in times of crisis? Opportunity Primary qualitative Finland 844 social media posts of 66 ventures in food and beverages; 17 interviews Thematic analysis; content analysis Identification of four pathways to expand the entrepreneurial solution space Block et al ( 2021 ) What are the factors determining bootstrap financing in a crisis?…”

La adaptación de las empresas a la realidad COVID: una revisión sistemática

“…La crisis de la COVID-19 ha requerido, en el corto plazo, que las organizaciones buscaran opciones digitales e identificaran formas de entregar sus productos y servicios con un contacto físico mínimo y seguro, así como posiciones estratégicas y socios en el nuevo ecosistema que pudieran ayudarlas a lograrlo. Para lograr esta adaptación a los tiempos cambiantes, las empresas han debido mostrarse tremendamente ágiles; explotar sus capacidades dinámicas (Seetharaman, 2020); exprimir las oportunidades que les ha brindado el marketing, tales como agrupar productos, adoptar iniciativas de rebranding e, incluso, ingresar en categorías de productos completamente nuevas (Björklund et al, 2020); y aprovechar su capital social para crear y ampliar el conocimiento sobre clientes, materias primas y competidores y para obtener información barata, rápida y útil para generar innovación (Putra et al, 2020).…”

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“…La crisis de la COVID-19 ha requerido, en el corto plazo, que las organizaciones buscaran opciones digitales e identificaran formas de entregar sus productos y servicios con un contacto físico mínimo y seguro, así como posiciones estratégicas y socios en el nuevo ecosistema que pudieran ayudarlas a lograrlo. Para lograr esta adaptación a los tiempos cambiantes, las empresas han debido mostrarse tremendamente ágiles; explotar sus capacidades dinámicas(Seetharaman, 2020); exprimir las oportunidades que les ha brindado el marketing, tales como agrupar productos, adoptar iniciativas de rebranding e, incluso, ingresar en categorías de productos completamente nuevas(Björklund et al, 2020); y aprovechar su capital social para crear y ampliar el conocimiento sobre clientes, materias primas y competidores y para obtener información barata, rápida y útil para generar innovación(Putra et al, 2020).Retos, 11(21), 2021 © 2021, Universidad Politécnica Salesiana del Ecuador ISSN impreso: 1390-6291; ISSN electrónico: 1390-8618…”