Digital affordances: how entrepreneurs access support in online communities during the COVID-19 pandemic

The effects of the COVID-19 pandemic on U.S. entrepreneurship

We study the effects of the COVID-19 pandemic on U.S. entrepreneurial activities, as measured by the overall number of new business applications, high-propensity business applications, business applications from corporations, and business applications with paid wages. However, the number of business applications increased significantly after the lockdown. Also, the portion of high-propensity business applications as a share of total business applications declined considerably during and after the lockdown. Our findings could partially explain the tight labor market in the U.S. during the pandemic.

Knowledge integration for resilience among multinational SMEs amid the COVID-19: from the view of global digital platforms

Purpose

Multinational small-to-medium-sized enterprises (SMEs) are increasingly participating in cross-border digital platforms – especially amid the COVID-19 pandemic. Accordingly, knowledge integration (KI) has become more and more important. In fact, it has been deemed by many as the key to organizational resilience. Given this burgeoning phenomenon, this study aims to explore a path for improving the resilience of multinational SMEs. Through this process, this study also finds a relationship between the KI processes associated with adopting global digital platforms and the resiliency of local–global businesses. Hence, in part, this paper also explores the effectiveness of all these mechanisms.

Design/methodology/approach

This study used the stepwise regression method in Stata 16.0 to analyze the direct effects of both horizontal and vertical KI processes on the resilience of local–global businesses. Additionally, t-tests were also used to compare the differences in coefficients between the mechanisms. The sample analyzed comprised data on multinational manufacturing SMEs in the Yangtze River Delta region of China who are using global digital platforms.

Findings

The KI processes of these firms, both horizontal and vertical, positively correlate to resilience. Horizontal KI processes more efficiently increase the resilience of global businesses, whereas vertical processes more efficiently increase the resilience of local businesses.

Originality/value

First, this study provides insights into how multinational SMEs can improve their resilience in a crisis. In addition to adding to the knowledge of KI processes, this expands the KM literature on pandemics. Second, by creating two KI processes based on global digital platforms and discussing their influence on resilience, this research deepens the understanding of affordance in the KM literature. Third, focusing on the KI research stream, the results shed light on how KI processes might occur and how firms develop their KI processes.

Emergency-aid for self-employed in the Covid-19 pandemic: A flash in the pan?

The self-employed faced strong income losses during the Covid-19 pandemic. Many governments introduced programs to financially support the self-employed during the pandemic, including Germany. The German Ministry for Economic Affairs announced a €50bn emergency-aid program in March 2020, offering one-off lump-sum payments of up to €15,000 to those facing substantial revenue declines. By reassuring the self-employed that the government 'would not let them down' during the crisis, the program had also the important aim of motivating the self-employed to get through the crisis. We investigate whether the program affected the confidence of the self-employed to survive the crisis using real-time online-survey data comprising more than 20,000 observations. We employ propensity score matching, making use of a rich set of variables that influence the subjective survival probability as main outcome measure. We observe that this program had significant effects, with the subjective survival probability of the self-employed being moderately increased. We reveal important effect heterogeneities with respect to education, industries, and speed of payment. Notably, positive effects only occur among those self-employed whose application was processed quickly. This suggests stress-induced waiting costs due to the uncertainty associated with the administrative processing and the overall pandemic situation. Our findings have policy implications for the design of support programs, while also contributing to the literature on the instruments and effects of entrepreneurship policy interventions in crisis situations.

Digital platforms and entrepreneurial support: a field experiment in online mentoring

The benefits of entrepreneurial mentorship are well documented, but there is limited research on how entrepreneurs connect with mentors, especially in digital settings. We partnered with an online platform that connects entrepreneurs to potential mentors to conduct a field experiment in online mentoring. Drawing on literature on entrepreneurial mentorship and Social Cognitive Theory, we compared the effects of three interventions on the likelihood of reaching out and making a connection with a mentor in a digital setting. We find that showing entrepreneurs a video of a successful mentor-mentee relationship increases the chances that they will reach out to a potential mentor but does not improve their chances of making a connection. These findings are more pronounced for female entrepreneurs. While not all entrepreneurs adopt the offered interventions, those that make the effort to learn to navigate the online platform and craft a suitable introductory message are successful in establishing a mentoring connection. We discuss these implications for both theory and practice.

How does COVID-19 pandemic affect entrepreneur anxiety? The role of threat perception and performance pressure

The entrepreneurial firms may be more vulnerable to the COVID-19 pandemic, and the entrepreneurs of entrepreneurial firms are also threatened by the revenues decline and business failure, which vehemently affect their well-being. The mental health of the entrepreneur decides whether the entrepreneurial firms can make the right decision, which is related to the healthy development of the entrepreneurial firms. Based on the event system theory and the cognitive appraisal theory, this paper aims to explore the effect of COVID-19 pandemic on the entrepreneur anxiety, and the threat perception and performance pressure are introduced to investigate the mediating mechanism and boundary of this effect. Using the simple random sampling to obtain questionnaire survey data, 168 entrepreneurs of entrepreneurial firms have participated in the empirical study, and the research results are as follows. First, the COVID-19 pandemic significantly positively affects entrepreneur anxiety. Second, the entrepreneur threat perception plays a mediating role between the COVID-19 pandemic and the entrepreneur anxiety, which means the COVID-19 pandemic can enhance the external threat perception of entrepreneurs, and then affect the entrepreneur anxiety. Third, the positive effect of the COVID-19 pandemic on the entrepreneur anxiety is strengthened by the entrepreneur performance pressure, while the positive effect of entrepreneur threat perception on entrepreneur anxiety is weakened by the entrepreneur performance pressure. The above findings are helpful to explore the mechanism of the COVID-19 pandemic and other critical crisis events on entrepreneurs’ mental health from the new perspective of cognitive appraisal theory and event system theory, filling the research gaps between the COVID-19 pandemic and entrepreneur anxiety. Besides, this study broadens the applied range of the cognitive appraisal theory and the event system theory in the fields of crisis situations and entrepreneur research, and enriches the research outputs. Furthermore, this study will help provide a new theoretical analysis insight for the related research on how the COVID-19 pandemic affects entrepreneurs’ psychology, and further deepen researchers to understand the mechanism of entrepreneur anxiety under the COVID-19 pandemic, providing theoretical inspirations for reducing entrepreneur anxiety. What’s more, this study finds that individual pressure can affect their cognitive appraisal, which means that future research should take the pressure influential mechanism into consideration in the process of exploring “external stimulus--cognitive appraisal--emotional response,” further expanding the theoretical model of cognitive appraisal proposed from the perspective of pressure.

Productivity and firm exit during the COVID-19 crisis: cross-country evidence

This paper examines whether the economic crisis induced by the COVID-19 pandemic exhibits a Schumpeterian "cleansing" of less productive firms. Using firm-level data collected for 34 economies up to 18 months into the crisis, the study finds that less productive firms have a higher probability of permanently closing during the crisis, suggesting that the process of cleansing out unproductive activities is occurring. The paper also uncovers strong and negative relationships of firm exit with digital presence and with innovation. These relationships are driven by small firms. The study further finds that a burdensome business environment increases the probability of firm exit, also driven by small firms, and that a negative relationship exists between firm exit and age. Finally, evidence shows that the cleansing process is disrupted in countries which have introduced policies imposing a moratorium on insolvency procedures.

Sustainability of Digital Capital and Social Support during COVID-19: Indonesian Muslim Diaspora’s Case in South Korea

During the COVID-19 pandemic, digital capital and online activities have played significant roles as a tool for enhancing social support. Considering the increased role of information communication technology (ICT), in this study, we investigated the following research questions by focusing on the Indonesian Muslim diaspora in South Korea. To what extent do digital capital and online communities affect the formation of social support in the pandemic situation? How does the Indonesian Muslim diaspora pursue social support in South Korea, which has a high capacity for ICT infrastructure? We used the technology acceptance model (TAM) for the conceptual model and conducted semi-structured interviews and surveys for data collection. Structural equation modeling demonstrates that TAM can be applied in the case of South Korea’s Indonesian Muslim diaspora, especially during the pandemic. Findings suggest that digital capital and the perceived usefulness/perceived ease of use (PU/PEOU) of online communities reinforced the Indonesian Muslim diaspora’s participation in online communities after COVID-19. It also demonstrates the ways in which the Indonesian Muslim diaspora pursues social support through online communities under restricted situations.

Digital Innovations in MSMEs during Economic Disruptions: Experiences and Challenges of Young Entrepreneurs

The spike in COVID-19 cases all over the world poses a massive impact on various sectors of society. The global economy is no exception, for it has been severely affected by the unprecedented public health crisis leading businesspeople to shutdown commercial establishments and dramatically shifting businesses into digital platforms. Immense challenges brought by the pandemic have turned into great opportunities among entrepreneurs from different parts of the globe. In pursuit of the recovery path, they considered digital tools to be instrumental to surviving the crisis and even thriving in the long term. This study explores drivers and barriers to digital innovations in micro, small, and medium enterprises (MSMEs) during economic disruptions from the perspective of Filipino young entrepreneurs. Researchers employed a qualitative method for the conduct of in-depth interviews with 46 online entrepreneurs in the Philippines and transcribed them for Inductive Content Analysis to generate themes. Results found the adverse effects of the pandemic, which reinforce entrepreneurial innovations of shifting businesses to digital platforms, categorized into intrinsic (e.g., personal and professional growth) and extrinsic (e.g., mobility restrictions, market conditions, and household economic status) motivations. Participants described the barriers to digital entrepreneurship, including skills needed for doing online business, market-related problems in digital platforms, availability of quality internet infrastructures, and the pandemic restrictions. The findings of this study contribute to the entrepreneurship literature and areas for an empirical investigation to develop programs that support entrepreneurs during economic disruptions. This would serve as a guidepost in the formulation of government policies and strategies for economic recovery through digital entrepreneurship while considering the perspectives of young entrepreneurs. This further recommends future related researches to empower entrepreneurs, particularly those in the developing economies during the pandemic and beyond.

Evaluating the Impact of COVID-19 on Society, Environment, Economy, and Education

The COVID-19 pandemic has caused drastic changes across the globe, affecting all areas of life. This paper provides a comprehensive study on the influence of COVID-19 in various fields such as the economy, education, society, the environment, and globalization. In this study, both the positive and negative consequences of the COVID-19 pandemic on education are studied. Modern technologies are combined with conventional teaching to improve the communication between instructors and learners. COVID-19 also greatly affected people with disabilities and those who are older, with these persons experiencing more complications in their normal routine activities. Additionally, COVID-19 provided negative impacts on world economies, greatly affecting the business, agriculture, entertainment, tourism, and service sectors. The impact of COVID-19 on these sectors is also investigated in this study, and this study provides some meaningful insights and suggestions for revitalizing the tourism sector. The association between globalization and travel restrictions is studied. In addition to economic and human health concerns, the influence of a lockdown on environmental health is also investigated. During periods of lockdown, the amount of pollutants in the air, soil, and water was significantly reduced. This study motivates researchers to investigate the positive and negative consequences of the COVID-19 pandemic in various unexplored areas.

Economic effects of the COVID-19 pandemic on entrepreneurship and small businesses

The existential threat to small businesses, based on their crucial role in the economy, is behind the plethora of scholarly studies in 2020, the first year of the COVID-19 pandemic. Examining the 15 contributions of the special issue on the "Economic effects of the COVID-19 pandemic on entrepreneurship and small businesses," the paper comprises four parts: a systematic review of the literature on the effect on entrepreneurship and small businesses; a discussion of four literature strands based on this review; an overview of the contributions in this special issue; and some ideas for post-pandemic economic research.