Strategic responses to crisis

doi:10.1002/smj.3161

Cited by 311 publications

(480 citation statements)

References 52 publications

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“…In very practical terms, a frugal entrepreneur would behave as follows: (1) sell off or divest from all goods and services or resources (i.e., capital) that do not contribute to primary revenue streams, (2) take stock, organize, and prioritize (maintaining and acquiring) goods, services, or resources that contribute directly to your revenues by focusing on frugal choices, (3) reduce short-term liabilities and renegotiate financial expenses. However, as much as frugality will support the retrenchment, its long term effects on business turnaround are more mixed (Wenzel et al, 2020). Here is where the entrepreneur's ability to time the investment of (existing or new) slack resources into innovation opportunities will make a difference in the long-term performance (Reymen et al, 2015).…”

Section: Final Thoughts On Entrepreneurial Action While Encountering mentioning

confidence: 99%

Revising entrepreneurial action in response to exogenous shocks: Considering the COVID-19 pandemic

Giones

Brem

Pollack

et al. 2020

Journal of Business Venturing Insights

227

202

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With regards to the ongoing impact of the COVID-19 pandemic in the domain of entrepreneurship, we offer research-based evidence and associated insights focused on three perspectives (i.e., business planning, frugality, and emotional support) regarding entrepreneurial action under an exogenous shock. Beyond the initial emergency response that countries around the world have taken, we argue that it is time to revise entrepreneurial action guidance in such a context. Our aim is to highlight ways that entrepreneurs can take action in light of the current COVID-19 pandemic. We position our insights to be relevant to both researchers and practitioners coping with an unprecedented situation that has catastrophic consequences both economically and socially. 1. Research context The COVID-19 outbreak began with the first reporting of an unknown virus in December 2019. Within months, the outbreak had become a global crisis affecting the world both economically and socially. By March 2020, the World Health Organization (WHO) had declared the COVID-19 outbreak a pandemic. The absence of short-term medical responses to the virus (either as vaccines or treatments) has necessitated the use of lockdowns and social distancing restrictions as government tools to reduce the transmission of the virus across the population. However, the lockdowns (including, in some cases, the introduction of border controls and/or travel bans) have triggered an economic activity disruption that does not resemble any such prior demand or supply crisis. Beyond the temporal freeze of activity, there are growing concerns about the long-term effects originating with the need for lockdown protocol extensions (increasing its total duration and impact), as well as on the need to sustain behavioral rules such as social distancing to reduce the risk of new contagions. While the crisis affects all types of economic activity, the public support programs tend to prioritize and protect established organizations. And, unfortunately, the priority for the public institutions seems to be to reduce the risk of bankruptcies and destruction of * Corresponding author.

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Section: Final Thoughts On Entrepreneurial Action While Encountering mentioning

confidence: 99%

Revising entrepreneurial action in response to exogenous shocks: Considering the COVID-19 pandemic

Giones

Brem

Pollack

et al. 2020

Journal of Business Venturing Insights

227

202

View full text Add to dashboard Cite

show abstract

“…Our starting point is that the literature has struggled to fully comprehend how entrepreneurial activity is upended, mediated and re-aligned by crisis episodes (Doern et al, 2019;Herbane, 2010;Wenzel et al, 2020). Research on the impact of crisis events for SMEs is sparse, despite the fact that SMEs are often the firms most disadvantaged by crisis episodes (Doshi et al, 2018).…”

Section: Introductionmentioning

confidence: 99%

Financing entrepreneurship in times of crisis: Exploring the impact of COVID-19 on the market for entrepreneurial finance in the United Kingdom

Brown

Rocha

Cowling

2020

International Small Business Journal: Researching Entrepreneurs

220

161

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This commentary explores the manner in which the current COVID-19 crisis is affecting key sources of entrepreneurial finance in the United Kingdom. We posit that the unique relational nature of entrepreneurial finance may make it highly susceptible to such a shock owing to the need for face-to-face interaction between investors and entrepreneurs. The article explores this conjecture by scrutinising a real-time data source of equity investments. Our findings suggest that the volume of new equity transactions in the United Kingdom has declined markedly since the outbreak of the COVID-19 pandemic. It appears that seed finance is the main type of entrepreneurial finance most acutely affected by the crisis, which typically goes to the most nascent entrepreneurial start-ups facing the greatest obstacles obtaining finance. Policy makers can utilise these real-time data sources to help inform their strategic policy interventions to assist the firms most affected by crisis events.

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“…Since its outbreak in December 2019, the COVID-19 pandemic has hit the global economy with an unprecedented crisis with respect to its cause, scope and severity [1,2]. It has lasted for eight months, and the crisis is not slowing down on its affecting the lives of people and survival of organizations around the world [3]. The World Health Organization (WHO) declared the COVID-19 pandemic as a public health emergency of international concern (PHEIC) on 30 January 2020 [4], taking into consideration the devastating threat it imposes on human health.…”

Section: Introductionmentioning

confidence: 99%

Corporate Social Responsibility and Organizational Resilience to COVID-19 Crisis: An Empirical Study of Chinese Firms

2020

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Resilience captures firm capability to adjust to and recover from unexpected shocks in the environment. Being latent and path-dependent, the manifestation of organizational resilience is hard to be directly measured. This article assesses organizational resilience of firms in the context of the COVID-19 pandemic with pre-shock corporate social responsibility (CSR) performance as a predictor that positively influences the level of organizational resilience to the external shock caused by the pandemic. We develop three theoretical mechanisms based on stakeholder theory, resource-based theory, reputation perspective and means-end chain theory to explain how CSR fulfillment in the past could help firms maintain stability to adapt to and react flexibly to recover from the crisis. We examine the relationship in the context of the systemic shock caused by COVID-19, using a sample of 1597 listed firms in China during the time window from 20 January 2020 to 10 June 2020. We find that companies with higher CSR performance before the shock will experience fewer losses and will take a shorter time to recover from the attack.

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Strategic responses to crisis

Cited by 311 publications

References 52 publications

Revising entrepreneurial action in response to exogenous shocks: Considering the COVID-19 pandemic

Revising entrepreneurial action in response to exogenous shocks: Considering the COVID-19 pandemic

Financing entrepreneurship in times of crisis: Exploring the impact of COVID-19 on the market for entrepreneurial finance in the United Kingdom

Corporate Social Responsibility and Organizational Resilience to COVID-19 Crisis: An Empirical Study of Chinese Firms

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