ABSTRACT
We research the antecedents of relative success among small and medium enterprises (SMEs) in avoiding temporary or permanent closure during the COVID‐19 pandemic. We investigate the roles of firm‐specific resources and state support policies in influencing SME fortunes, in a sizeable group of European countries covered in the World Bank Enterprise Survey. Using resource dependency, Varieties of Capitalism and Systems theories, we find that innovative capacities, institutional connectedness, governance, and management experience were major antecedents of success across all SMEs. Significant differences in outcomes were found between SMEs operating in old and new EU member states, and non‐EU countries.
ABSTRACT
PurposeThis study examines the survival probability of the firms during the COVID-19 pandemic and identifies the effects of pandemic-era business strategies on firm survival across sectors and sizes.Design/methodology/approachThis study combines World Bank Enterprise Survey data with three consecutive follow-up COVID-19 survey data. The COVID-19 surveys are the follow-up surveys of WBES, and they are done at different points of time during the pandemic. Both WBES and COVID-19 surveys follow the same sampling methods, and the data are merged based on the unique id number of the firms. The data covers 12,551 firms from 21 countries in different regions such as Africa, Latin America, Central Asia and the Middle East. The study applies Kaplan–Meier estimate to analyze the survival probability of the firms across sectors and sizes. The study then uses Cox non-parametric regression model to identify the effect of business strategies on the survival of the firms during the pandemic. The robustness of the Cox model is checked using the multilevel parametric regression model.FindingsThe study's findings suggest that a firm's survival probability decreases during the pandemic era. Manufacturing firms have a higher survival probability than service firms, whereas SMEs have a higher survival probability than large firms. During the pandemic period, business strategies significantly boost the probability of firm survival, and their impacts differ among firm sectors and sizes. Several firm-specific factors affect firm survival in different magnitudes and signs. Except in a few cases, the findings also indicate that one strategy positively moderates the influence of another strategy on firm survival during a pandemic.Originality/valueCOVID-19 pandemic has drastically affected the business across the globe. Firms adopted new business processes and strategies to face the challenges created by the pandemic. The critical research question is whether these pandemic-era business strategies ensure firms' survival. This study attempts to identify the effects of these business strategies on firms' survival, focusing on a comprehensive firm-level data set that includes firms from different sectors and sizes of countries from various regions.
ABSTRACT
Small and medium-sized manufacturing enterprises, the backbone of the Southeast Asian economy, are struggling to operate and maintain profitable growth in the face of the COVID-19 epidemic. During the recovery process, technological and non-technological innovation is a major factor in enterprise efficiency and profitability. However, it is unclear what drives manufacturing enterprises to innovate in technological and non-technological approaches and how they choose to implement innovation to keep their businesses growing and successful. Therefore, to answer this issue, this research develops and empirically tests a model based on dynamic capabilities and innovative perspectives utilizing World Bank Enterprise Survey data from 789 manufacturing enterprises in Southeast Asian countries. The hierarchical regression model assists create prediction equations to test technological and non-technological innovation as the mediators of structural reconfiguration and innovation investment on firm performance. The results reveal that structural reconfiguration and innovation investment impact technological and non-technological innovation. Additionally, structural addition and investment in formal R&D have a moderated impact on technological innovation. Finally, firm performance may be boosted by organizational innovation. © The Author(s) 2022.
ABSTRACT
We research the antecedents of relative success among small and medium enterprises (SMEs) in avoiding temporary or permanent closure during the COVID-19 pandemic. We investigate the roles of firm-specific resources and state support policies in influencing SME fortunes, in a sizeable group of European countries covered in the World Bank Enterprise Survey. Using resource dependency, Varieties of Capitalism and Systems theories, we find that innovative capacities, institutional connectedness, governance, and management experience were major antecedents of success across all SMEs. Significant differences in outcomes were found between SMEs operating in old and new EU member states, and non-EU countries.