Hostname: page-component-78c5997874-s2hrs Total loading time: 0 Render date: 2024-11-18T06:23:54.014Z Has data issue: false hasContentIssue false

Entrepreneurship and the Post-COVID-19 Recovery in Emerging Economies

Published online by Cambridge University Press:  21 September 2021

Klaus E. Meyer*
Affiliation:
Western University, Canada
Shameen Prashantham
Affiliation:
China Europe International Business School, China
Shiqi Xu
Affiliation:
Western University, Canada
*
Corresponding author: Klaus E. Meyer ([email protected])

Abstract

Entrepreneurs play a focal role in a society's economic recovery from major disruptions such as the COVID-19 pandemic. We argue that entrepreneurs’ ability to identify and act on entrepreneurial opportunities during the crisis reflects their resilience, and their innovations facilitate new patterns of work, learning, and leisure activities in post-COVID-19 societies. However, how, how quickly they act, and how influential their actions are depends on their context in terms of institutions, resource access, and market volatility. In China, some entrepreneurs have shown great resilience by utilizing network relationships and digital technology, not only to overcome short-term disruptions in 2020 but to shape the evolving ‘new normal’ where behaviors and capabilities have changed as a consequence of the experience of the pandemic. We discuss drivers of such resilient entrepreneurship during the COVID-19 pandemic in China and call for further research on the interplay between external disruptions, different types of entrepreneurship, and the consequences for resilience in emerging economies.

摘要

企业家们在社会遭遇如新冠疫情等重大冲击后的经济复苏中扮演着举足轻重的角色。我们认为企业家们在困境中所表现出来的识别创业机会并采取行动的能力反应了他们企业的韧性。这些企业家们的创业创新在后疫情时代为社会带来了新的工作、学习以及娱乐模式。然而,企业家们如何行动,以及他们的行动有多大影响力,取决于他们在制度、资源获取和市场结构方面的背景及条件。

在中国,一些企业家利用网络关系和推进数字技术两方面表现出卓越的复原力,这些方式不仅在2020年帮助企业克服了短期困境,而且创造了由于疫情期间行为和能力的变化所带来的“新常态”。本文聚焦讨论在中国后疫情时代中这种创业企业韧性的驱动因素,并呼吁学者们进一步研究三类因素:外界干扰、创业类型、企业韧性结果,以及它们之间在新兴市场中的相互作用。

Type
Dialogue, Debate, and Discussion
Copyright
Copyright © The Author(s), 2021. Published by Cambridge University Press on behalf of The International Association for Chinese Management Research

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

Footnotes

ACCEPTED BY Editor-in-Chief Arie Y. Lewin

References

REFERENCES

Ba, S., & Bai, H. 2021. Covid-19 pandemic as an accelerator of economic transition and financial innovation in China. Journal of Chinese Business and Economics, 18(4): 341348.Google Scholar
Baker, T., & Nelson, R. E. 2005. Creating something from nothing: Resource construction through entrepreneurship bricolage. Administrative Science Quarterly, 50(3): 329366.CrossRefGoogle Scholar
Battisti, M., & Deakins, D. 2017. The relationship between dynamic capabilities, the firm's resource base and performance in a post-disaster environment. International Small Business Journal, 35(1): 7898.CrossRefGoogle Scholar
Beck, T., Flynn, B., & Homanen, M. 2020, July 16. COVID-19 in emerging markets: Firm-survey evidence. Covid Economics, 38: 3767.Google Scholar
Brammer, S., & Millington, A. 2005. Corporate reputation and philanthropy: An empirical analysis. Journal of Business Ethics, 61(1): 2944.CrossRefGoogle Scholar
Brenk, S., Lüttgens, D., Diener, K., & Piller, F. 2019. Learning from failures in business model innovation: Solving decision-making logic conflicts through intrapreneurial effectuation. Journal of Business Economics, 89: 10971147.CrossRefGoogle Scholar
Caligiuri, P., De Cieri, H., Minbaeva, D., Verbeke, A., & Zimmermann, A. 2020. International HRM insights for navigating the COVID-19 pandemic: Implications for future research and practice. Journal of International Business Studies, 51: 697713.CrossRefGoogle Scholar
CEIBS. 2021. Freeing the hands of front-line COVID-19 workers. CEIBS Alumni Stories, web resource. [Cited 5 April 2021]. Available from URL: https://www.ceibs.edu/gemba/story/19421Google Scholar
Chang, S. J., & Park, S. H. 2012. Winning strategies in China: Competitive dynamics between MNCs and local firms. Long Range Planning, 45(1): 115.CrossRefGoogle Scholar
Cirera, X., Cruz, M., Davies, E., Grover, A., Lacovone, L., Lopez Cordova, J. E., Medvedev, D., Okechukwu Maduko, F., Nayyar, G., Reyes Ortega, S., & Torres, J. 2021. Policies to support businesses through the COVID-19 shock: A firm level perspective. World Bank Research Observer, 36(1): 4166.CrossRefGoogle Scholar
Coté, C., Estrin, S., Meyer, K. E., & Shapiro, D. 2020. COVID-19 and the dynamics of distance in international business. AIB Insights, 20(3). DOI: https://doi.org/10.46697/001c.18080Google Scholar
Dai, R., Feng, H., Hu, J., Jin, Q., Li, H., Wang, R., Wang, R., Xu, L., & Zhang, X. 2021. The impact of COVID-19 on small and medium-sized enterprises (SMEs): Evidence from two-wave phone surveys in China. China Economic Review, 67: 101607.CrossRefGoogle Scholar
Doern, R. 2016. Entrepreneurship and crisis management: The experiences of small businesses during the London 2011 riots. International Small Business Journal, 34(3): 276302.CrossRefGoogle Scholar
Dutta, S. 2017. Creating in the crucibles of nature's fury: Associational diversity and local social entrepreneurship after natural disasters in California, 1991–2010. Administrative Sciences Quarterly, 63(3): 443483.CrossRefGoogle Scholar
The Economist. 2020, October 19. In a world mired in recession, China manages a V-shaped recovery. Available from URL: https://www.economist.com/graphic-detail/2020/10/19/in-a-world-mired-in-recession-china-manages-a-v-shaped-recoveryGoogle Scholar
Elliott, D., & Smith, D. 2006. Cultural readjustment after crisis: Regulation and learning from crisis within the UK soccer industry. Journal of Management Studies, 43(2): 289317.CrossRefGoogle Scholar
Fisher, G. 2012. Effectuation, causation and bricolage: A behavioral comparison of emerging theories in entrepreneurship research. Entrepreneurship Theory & Practice, 36(5): 10191051.CrossRefGoogle Scholar
Gao, C., Zuzul, T., Jones, G., & Khanna, T., 2017. Overcoming institutional voids: A reputation-based view of long-run survival. Strategic Management Journal, 38(11): 21472167.CrossRefGoogle Scholar
Gereffi, G. 2020. What does the COVID-19 pandemic teach us about global value chains? The case of medical supplies. Journal of International Business Policy, 3(2): 287301.CrossRefGoogle Scholar
Goodman, B. 1995. 4. Expansive practices: Charity, modern enterprise, the city and the state. In Goodman, B. (Ed.), Native place, city, and nation: Regional networks and identities in Shanghai, 1853–1937. Berkley, CA: University of California Press.CrossRefGoogle Scholar
Grandori, A., 2020. Black swans and generative resilience. Management and Organization Review, 16(3): 495501.CrossRefGoogle Scholar
Greeven, M. J., Yip, G. S., & Wei, W. 2019. Pioneers, hidden champions, change makers and underdogs: Lessons from China's innovators. Cambridge: MIT Press.CrossRefGoogle Scholar
Grube, L. E., & Storr, V. H. 2018. Embedded entrepreneurs and post-disaster community recovery. Entrepreneurship and Regional Development, 30(1): 78.CrossRefGoogle Scholar
Hamel, G., & Välikangas, L. 2003. The quest for resilience. Harvard Business Review, 81(9): 5263.Google ScholarPubMed
Hill, A. 2020, September 1. The big read: Future of work: how managers are harnessing, employees’ hidden skills. Financial Times. Available from URL: https://www.ft.com/content/01fd6ad5-b062-4699-b098-ab81bdc8f7b2Google Scholar
Hillmann, J., & Guenther, E. 2021, Organizational resilience: A valuable construct of management research? International Journal of Management Reviews, 23(1): 744.CrossRefGoogle Scholar
Hossain, M., Levänen, J., & Wierenga, M. 2021. Pursuing frugal innovation for sustainability at the grassroots level, Management and Organization Review, 17(2): 374381.CrossRefGoogle Scholar
Hua, X., Chen, Y., & Prashantham, S. 2016. Institutional logic dynamics: Private firm financing in Ningbo (1912–2008). Business History, 58(3): 378407.CrossRefGoogle Scholar
Irvine, W., & Anderson, A. 2004. Small tourist firms in rural areas: Agility, vulnerability and survival in the face of crisis. International Journal of Entrepreneurial Behaviour & Research, 10(4): 229246.CrossRefGoogle Scholar
Jiang, X. 2020. Digital economy in the post-pandemic era. Journal of Chinese Economic and Business Studies, 18(4): 333339.CrossRefGoogle Scholar
Kirzner, I. M. 1973. Competition and entrepreneurship. Chicago: University of Chicago Press.Google Scholar
Krishnan, R. T., & Prashantham, S. 2019. Innovation in and from India: The who, where, what, and when. Global Strategy Journal, 9(3): 357377.CrossRefGoogle Scholar
Lewin, A. Y., Välikangas, L., & Chen, J. 2017, Enabling open innovation: Lessons from Haier. International Journal of Innovation Studies, 1(1): 519.CrossRefGoogle Scholar
Li, H., & Zhang, Y. 2007. The role of managers’ political networking and functional experience in new venture performance: Evidence from China's transition economy. Strategic Management Journal, 28(8): 791804.CrossRefGoogle Scholar
Lin, J. Y. 2020. China's economic outlook against the backdrop of the COVID-19 pandemic and US-China tensions. Journal of Chinese Economic and Business Studies, 18(4): 327331.CrossRefGoogle Scholar
Linnenluecke, M. K. 2017. Resilience in business and management research: A review of influential publications and a research agenda. International Journal of Management Reviews, 19(1): 430.CrossRefGoogle Scholar
Liu, Y. 2020. Contextualising risk and building resilience: Returnees versus local entrepreneurs in China. Applied Psychology, 69(2): 415443.CrossRefGoogle Scholar
Luo, Y., & Bu, J. 2018. Contextualizing international strategy by emerging market firms: A composition-based approach. Journal of World Business, 53(3): 337355.CrossRefGoogle Scholar
Luo, Y., & Child, J. 2015. A composition-based view of firm growth. Management and Organization Review, 11(3): 379411.CrossRefGoogle Scholar
Ma, Y. L., & Hu, Y. 2021. Business model innovation and experimentation in transforming economies: ByteDance and TikTok. Management and Organization Review, 17(2): 382388.CrossRefGoogle Scholar
Mehotra, S., & Velamuri, S. R. 2021. Secondary business model innovation in emerging economies. Management and Organization Review, 17(2): 344373.CrossRefGoogle Scholar
Mei, C. 2020. Policy style, consistency and the effectiveness of the policy mix in China's fight against COVID-19. Policy and Society, 39(3): 309325.CrossRefGoogle Scholar
Meyer, K. E. 2021. Thinking strategically during the global pan(dem)ic. In Fang, T. & Hassler, J. (Eds.), Globalization, political economy, business and society in pandemic times. Emerald Publishing.Google Scholar
Meyer, K. E., & Grosse, R. 2019. Introduction to management in emerging markets. In Grosse, R. & Meyer, K. E. (Eds.), Oxford handbook to management in emerging markets. Oxford: Oxford University Press.Google Scholar
Meyer, K. E., Pedersen, C. L., & Ritter, T. 2020, April 12. The coronavirus crisis: A catalyst for entrepreneurship. The Conversation. Available from URL: https://theconversation.com/the-coronavirus-crisis-a-catalyst-for-entrepreneurship-135005Google Scholar
Meyer, K. E., & Peng, M. W. 2016. Theoretical foundations of emerging economy research. Journal of International Business Studies, 47(1): 322.CrossRefGoogle Scholar
Morrish, S. C., & Jones, R. 2020. Post-disaster business recovery: An entrepreneurial marketing perspective. Journal of Business Research, 113: 8392.CrossRefGoogle Scholar
Nelson, R., & Lima, E. 2020. Effectuations, social bricolage and causation in the response to a natural disaster. Small Business Economics, 54: 721750.CrossRefGoogle Scholar
Park, S. H., Zhou, N., & Ungson, G. R. 2013. Rough diamonds. San Francisco: Jossey-Bass.Google Scholar
Prashantham, S., & Floyd, S. W. 2019. Navigating liminality in new venture internationalization. Journal of Business Venturing, 34(3): 513527.CrossRefGoogle Scholar
Prashantham, S., Kumar, K., Bhagvatula, S., & Saravathy, S. D. 2019. Effectuation, network-building and internationalization speed. International Small Business Journal, 37(1): 321.CrossRefGoogle Scholar
Radjou, N., Prahbhu, J., & Ahuja, S. 2012. Jugaad innovation: Think frugal, be flexible, generate breakthrough growth. San Francisco: Wiley.Google Scholar
Redding, G. 2020. Societal resilience: China and Japan, Management and Organization Review, 16(3): 485493.CrossRefGoogle Scholar
Ritter, T., & Pedersen, C. L. 2020. Analyzing the impact of the coronavirus crisis on business models. Industrial Marketing Management, 88: 214224.CrossRefGoogle Scholar
Runyan, R. C. 2006. Small business in the face of crisis: Identifying barriers to recovery from a natural disaster. Journal of Contingencies and Crisis Management, 14(1): 1226.CrossRefGoogle Scholar
Salvato, C., Sargiacome, M., Amore, M. D., & Minichilli, A. 2020. Natural disasters as a source of entrepreneurial opportunity: Family business resilience after an earthquake. Strategic Entrepreneurship Journal, 14(4): 594615.CrossRefGoogle Scholar
Sarasvathy, S. D. 2001. Causation and effectuation: Toward a theoretical shift from economic inevitability to entrepreneurial contingency. Academy of Management Review, 26(2): 243263.CrossRefGoogle Scholar
Sarasvathy, S. D. 2008. Effectuation: Elements of entrepreneurial orientation. Cheltenham, UK: Edward Elgar.CrossRefGoogle Scholar
Schumpeter, J. 1936. The theory of economic development, 2nd Edition. Cambridge, MA: Harvard University Press.Google Scholar
Shepherd, D. A. 2020. COVID-19 and entrepreneurship: Time to Pivot? Journal of Management Studies, 57(8): 17501753.CrossRefGoogle Scholar
Shepherd, D. A., & Williams, T. A. 2014. Local venturing as compassion organizing in the aftermath of a natural disaster: The role of localness and community in reducing suffering. Journal of Management Studies, 51(6): 952994.CrossRefGoogle Scholar
Shih, W. C. 2020, September. Global supply chains in a post-pandemic world. Harvard Business Review. Harvard Business Review. Available from URL: https://hbr.org/2020/09/global-supply-chains-in-apost-pandemic-worldGoogle Scholar
Shirokova, G., Osiyevskyy, O., Laskovaia, A., & Mahdavi-Mazdeh, H. 2020. Navigating the emerging market context: Performance implications of effectuation and causation for SMEs during adverse economic conditions in Russia. Strategic Entrepreneurship Journal, 14(3): 470500.CrossRefGoogle Scholar
Spicer, A. 2020. Organizational culture and COVID-19. Journal of Management Studies, 57(8): 17371740.CrossRefGoogle Scholar
Välikangas, L., & Lewin, A. 2020. The lingering new normal. Management and Organization Review, 16(3): 467472.CrossRefGoogle Scholar
Venkataraman, S. 1997. The distinctive domain of entrepreneurship research. Entrepreneurship Theory and Practice, 4(7): 3445.Google Scholar
Vuori, T. O. & Huy, Q. N. 2016. Distributed attention and shared emotions in the innovation process: How Nokia lost the smartphone battle. Administrative Science Quarterly, 61(1): 951.CrossRefGoogle Scholar
Welter, C., Mauer, R., & Wuebker, R. J. 2016. Bridging behavioral models and theoretical concepts: Effectuation and bricolage in the opportunity creation framework. Strategic Entrepreneurship Journal, 10(1): 520.CrossRefGoogle Scholar
Williams, T. A., Gruber, D. A., Sutcliffe, K. M., Shepherd, D. A., & Zhao, E. Y. 2017. Organizational response to adversity: Fusing crisis management and resilience research streams. Academy of Management Review, 11(2): 733769.Google Scholar
Williams, T. A., & Shepherd, D. A. 2016. Building resilience or providing sustenance: Different paths of emergent ventures in the aftermath of the Haiti earthquake. Academy of Management Journal, 59(6): 20692102.CrossRefGoogle Scholar
Williamson, P. J., & Wan, F. 2019. How real are opportunities for multinationals in China. In Grosse, R. & Meyer, K. E. (Eds.), Oxford handbook of management in emerging markets: 745762. Oxford: Oxford University Press.Google Scholar
Williamson, P. J., Wan, F., Yin, E., & Lei, K. 2020. Is disruptive innovation in emerging economies different? Evidence from China. Journal of Engineering and Technology Management, 57: 101590.CrossRefGoogle Scholar
Yip, G., & McKern, B. 2016. China's next strategic advantage: From imitation to innovation. Cambridge, MA: MIT Press.Google Scholar
Yip, G., & Prashantham, S. 2019. Innovation in emerging markets. In Grosse, R. & Meyer, K. E. (Eds.), Oxford handbook of management in emerging markets: 351372. Oxford: Oxford University Press.Google Scholar
Zhang, J., & Luo, X. R. 2013. Dared to care: Organizational vulnerability, institutional logics and MNCs’ social responsiveness in emerging markets. Organization Science, 24(6): 17421764.CrossRefGoogle Scholar
Zhou, X. G. 2020. Organizational response to COVID-19 crisis: Reflections on the Chinese bureaucracy and its resilience. Management and Organization Review, 16(3): 473484.CrossRefGoogle Scholar
Zhou, S., Li, P., Zhou, A., & Prashantham, S. 2020. The cultural roots of compositional capability in China: Balanced moderation. Asia Pacific Journal of Management, 37(3): 12171237.CrossRefGoogle Scholar