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Firm Survival in Times of Crisis: Do Innovation and Financing Constraints Matter? Insights from the COVID-19 Pandemic

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  • Ekin Ayşe Özşuca

Abstract

Utilizing survey data collected over three rounds, this paper investigates the impact of pre-COVID innovation performance, innovation type, sources of knowledge, and the moderating role of financial constraints on survival following the outbreak of COVID-19. The findings pinpoint a strong and positive link between firm survival and innovation, especially process innovation, confirming the ability of innovators to adapt to new conditions as a determinant of survival. Moreover, relying on internal knowledge is found to increase the chance of survival and adaptability to times of crisis. The results further indicate that access to finance strengthens the positive impact of innovation on firm survival/adaptation.

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  • Ekin Ayşe Özşuca, 2023. "Firm Survival in Times of Crisis: Do Innovation and Financing Constraints Matter? Insights from the COVID-19 Pandemic," Eastern European Economics, Taylor & Francis Journals, vol. 61(5), pages 421-456, September.
    • Handle: RePEc:mes:eaeuec:v:61:y:2023:i:5:p:421-456
    DOI: 10.1080/00128775.2023.2221229
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