Strategic flexibility or persistence? Examining the survival path of export enterprises under COVID-19

ABSTRACT

Purpose The rising uncertainties in the macroeconomic environment exacerbate the challenges firms face in the export market. This study aims to explore which strategy is suitable for export enterprises to develop sustainably under COVID-19. Design/methodology/approach Based on the sample data of China's A-stock listed manufacturing firms from 2010 to 2020, this study applies a survival analysis method to explore the impact of strategic flexibility on export firm survival. Furthermore, this study uses the difference-in-difference model to test the relationship between strategic flexibility and firms' profits in the context of the pandemic. Findings The results show that strategic flexibility can increase firms' survival time, improving dynamic production and innovation capabilities, which is favorable for their sustainable development. Meanwhile, after the spread of COVID-19, firms with strategic flexibility have higher profits than those without. This influence mechanism mainly involves exploring new markets that can improve the company revenue and the coordination capabilities of the supply chain;this reduces corporate costs. Originality/value This study expands relevant research on the factors affecting the survival of export enterprises and supplements research on the economic consequences of firms' strategic flexibility;this also enriches the dynamic capability theory. Additionally, it provides important implications for firms to enhance strategic flexibility and recommends government implementation of policies that encourage the domestic sales of commodities originally produced for exports under COVID-19.