IDEAS home Printed from https://ideas.repec.org/a/eee/jobuve/v22y2024ics2352673424000520.html
   My bibliography  Save this article

How sector fluidity (knowledge-intensiveness and innovation) shapes startups’ resilience during crises

Author

Listed:
  • Tanveer, Asif
  • Torres de Oliveira, Rui
  • Rizvi, Shaheer

Abstract

In the context of the crises, this study sheds light on the varying impact of crises on startups in different sectors and outlines the specific resilience practices utilized in response, recovery, and growth phases. The research team conducted qualitative analysis on 18 public discussion interviews featuring key stakeholders in the Indian startup ecosystem, which included 51 chief executive officers, founders, cofounders, and venture capitalists who reflected on COVID-19. The study found that high-fluidity sectors (highly knowledge-intensive and innovative) leverage their agility through resourcefulness and customer value creation. In contrast, low-fluidity sectors (low in knowledge intensiveness) primarily focus on operational adjustments. As the transition goes from response to recovery, high-fluidity sectors prioritize digital transformation and strategic shifts, while low-fluidity sectors continue to cope. In the growth phase, high-fluidity startups exhibit growth aspirations, while low-fluidity ones emphasize business model innovation. This research provides valuable sector-specific insights into resilience and highlights the evolution of these strategies throughout a crisis, thereby enhancing our understanding of startup resilience in the context of the crisis.

Suggested Citation

  • Tanveer, Asif & Torres de Oliveira, Rui & Rizvi, Shaheer, 2024. "How sector fluidity (knowledge-intensiveness and innovation) shapes startups’ resilience during crises," Journal of Business Venturing Insights, Elsevier, vol. 22(C).
    • Handle: RePEc:eee:jobuve:v:22:y:2024:i:c:s2352673424000520
    DOI: 10.1016/j.jbvi.2024.e00500
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S2352673424000520
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jbvi.2024.e00500?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Gagan Deep Sharma & Sascha Kraus & Amogh Talan & Mrinalini Srivastava & Christina Theodoraki, 2023. "Navigating the storm: the SME way of tackling the pandemic crisis," Post-Print hal-04676728, HAL.
    2. Maksim Belitski & Christina Guenther & Alexander S. Kritikos & Roy Thurik, 2022. "Economic effects of the COVID-19 pandemic on entrepreneurship and small businesses," Small Business Economics, Springer, vol. 58(2), pages 593-609, February.
    3. Andreea N. Kiss & Pamela S. Barr, 2015. "New venture strategic adaptation: The interplay of belief structures and industry context," Strategic Management Journal, Wiley Blackwell, vol. 36(8), pages 1245-1263, August.
    4. Bao, Yongchuan & Bao, Yeqing & Sheng, Shibin, 2011. "Motivating purchase of private brands: Effects of store image, product signatureness, and quality variation," Journal of Business Research, Elsevier, vol. 64(2), pages 220-226, February.
    5. Xibao Li, 2017. "Exploring the spatial heterogeneity of entrepreneurship in Chinese manufacturing industries," The Journal of Technology Transfer, Springer, vol. 42(5), pages 1077-1099, October.
    6. Iftikhar, Anas & Purvis, Laura & Giannoccaro, Ilaria, 2021. "A meta-analytical review of antecedents and outcomes of firm resilience," Journal of Business Research, Elsevier, vol. 135(C), pages 408-425.
    7. Ali, Imran & Arslan, Ahmad & Chowdhury, Maruf & Khan, Zaheer & Tarba, Shlomo Y., 2022. "Reimagining global food value chains through effective resilience to COVID-19 shocks and similar future events: A dynamic capability perspective," Journal of Business Research, Elsevier, vol. 141(C), pages 1-12.
    8. Williams, Trenton A. & Shepherd, Dean A., 2016. "Victim entrepreneurs doing well by doing good: Venture creation and well-being in the aftermath of a resource shock," Journal of Business Venturing, Elsevier, vol. 31(4), pages 365-387.
    9. Zahra, Shaker A., 2021. "International entrepreneurship in the post Covid world," Journal of World Business, Elsevier, vol. 56(1).
    10. J. Brock Smith & Claudia G. Smith & Jan Kietzmann & Sarah T. Lord Ferguson, 2022. "Understanding micro-level resilience enactment of everyday entrepreneurs under threat," Journal of Small Business Management, Taylor & Francis Journals, vol. 60(5), pages 1202-1245, September.
    11. Stuetzer, Michael & Obschonka, Martin & Audretsch, David B. & Wyrwich, Michael & Rentfrow, Peter J. & Coombes, Mike & Shaw-Taylor, Leigh & Satchell, Max, 2016. "Industry structure, entrepreneurship, and culture: An empirical analysis using historical coalfields," European Economic Review, Elsevier, vol. 86(C), pages 52-72.
    12. Lee, Sang M. & Trimi, Silvana, 2021. "Convergence innovation in the digital age and in the COVID-19 pandemic crisis," Journal of Business Research, Elsevier, vol. 123(C), pages 14-22.
    13. Xie, Xuemei & Wu, Yonghui & Palacios-Marqués, Daniel & Ribeiro-Navarrete, Samuel, 2022. "Business networks and organizational resilience capacity in the digital age during COVID-19: A perspective utilizing organizational information processing theory," Technological Forecasting and Social Change, Elsevier, vol. 177(C).
    14. Santos, Susana C. & Liguori, Eric W. & Garvey, Erin, 2023. "How digitalization reinvented entrepreneurial resilience during COVID-19," Technological Forecasting and Social Change, Elsevier, vol. 189(C).
    15. Qader, Ghulam & Junaid, Muhammad & Abbas, Qamar & Mubarik, Muhammad Shujaat, 2022. "Industry 4.0 enables supply chain resilience and supply chain performance," Technological Forecasting and Social Change, Elsevier, vol. 185(C).
    16. Palmié, Maximilian & Miehé, Lucas & Oghazi, Pejvak & Parida, Vinit & Wincent, Joakim, 2022. "The evolution of the digital service ecosystem and digital business model innovation in retail: The emergence of meta-ecosystems and the value of physical interactions," Technological Forecasting and Social Change, Elsevier, vol. 177(C).
    17. Ingrid C. Chadwick & Jana L. Raver, 2020. "Psychological Resilience and Its Downstream Effects for Business Survival in Nascent Entrepreneurship," Entrepreneurship Theory and Practice, , vol. 44(2), pages 233-255, March.
    18. Dean A. Shepherd & Vinit Parida & Joakim Wincent, 2021. "Entrepreneurship and Poverty Alleviation: The Importance of Health and Children’s Education for Slum Entrepreneurs," Entrepreneurship Theory and Practice, , vol. 45(2), pages 350-385, March.
    19. Andreas Kuckertz & Leif Brändle, 2022. "Creative reconstruction: a structured literature review of the early empirical research on the COVID-19 crisis and entrepreneurship," Management Review Quarterly, Springer, vol. 72(2), pages 281-307, June.
    20. Modgil, Sachin & Dwivedi, Yogesh K. & Rana, Nripendra P. & Gupta, Shivam & Kamble, Sachin, 2022. "Has Covid-19 accelerated opportunities for digital entrepreneurship? An Indian perspective," Technological Forecasting and Social Change, Elsevier, vol. 175(C).
    21. Ana Cristina O. Siqueira & Justin W. Webb & Garry D. Bruton, 2016. "Informal Entrepreneurship and Industry Conditions," Entrepreneurship Theory and Practice, , vol. 40(1), pages 177-200, January.
    22. Yoruk, Deniz E. & Yoruk, Esin & Figueiredo, Paulo N. & Johnston, Andrew, 2023. "Sectoral resilience through learning in networks and GVCs: A historical perspective on the food-processing and clothing industries in Poland," Technological Forecasting and Social Change, Elsevier, vol. 192(C).
    23. Marcon, Arthur & Ribeiro, Jose Luis Duarte, 2021. "How do startups manage external resources in innovation ecosystems? A resource perspective of startups’ lifecycle," Technological Forecasting and Social Change, Elsevier, vol. 171(C).
    24. David J Teece, 2014. "A dynamic capabilities-based entrepreneurial theory of the multinational enterprise," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 45(1), pages 8-37, January.
    25. Chhatwani, Malvika & Mishra, Sushanta Kumar & Varma, Arup & Rai, Himanshu, 2022. "Psychological resilience and business survival chances: A study of small firms in the USA during COVID-19," Journal of Business Research, Elsevier, vol. 142(C), pages 277-286.
    26. Sanjay Chaudhary & Amandeep Dhir & N. Meenakshi & Michael Christofi, 2024. "How small firms build resilience to ward off crises: a paradox perspective," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 36(1-2), pages 182-207, January.
    27. Jacqueline Kirtley & Siobhan O'Mahony, 2023. "What is a pivot? Explaining when and how entrepreneurial firms decide to make strategic change and pivot," Strategic Management Journal, Wiley Blackwell, vol. 44(1), pages 197-230, January.
    28. Benzidia, Smaïl & Luca, Ruxandra Monica & Boiko, Sergiy, 2021. "Disruptive innovation, business models, and encroachment strategies: Buyer's perspective on electric and hybrid vehicle technology," Technological Forecasting and Social Change, Elsevier, vol. 165(C).
    29. Liu, Wentong & Kwong, Caleb C.Y. & Kim, Young-Ah & Liu, Hongfei, 2021. "The more the better vs. less is more: Strategic alliances, bricolage and social performance in social enterprises," Journal of Business Research, Elsevier, vol. 137(C), pages 128-142.
    30. David J. Teece & Gary Pisano & Amy Shuen, 1997. "Dynamic capabilities and strategic management," Strategic Management Journal, Wiley Blackwell, vol. 18(7), pages 509-533, August.
    31. Bouncken, Ricarda B. & Kraus, Sascha, 2013. "Innovation in knowledge-intensive industries: The double-edged sword of coopetition," Journal of Business Research, Elsevier, vol. 66(10), pages 2060-2070.
    32. Per Davidsson & Scott R. Gordon, 2016. "Much Ado about Nothing? The Surprising Persistence of Nascent Entrepreneurs through Macroeconomic Crisis," Entrepreneurship Theory and Practice, , vol. 40(4), pages 915-941, July.
    33. Bürgel, Tobias R. & Hiebl, Martin R.W. & Pielsticker, David I., 2023. "Digitalization and entrepreneurial firms' resilience to pandemic crises: Evidence from COVID-19 and the German Mittelstand," Technological Forecasting and Social Change, Elsevier, vol. 186(PA).
    34. Abhirup Chakrabarti, 2015. "Organizational adaptation in an economic shock: The role of growth reconfiguration," Strategic Management Journal, Wiley Blackwell, vol. 36(11), pages 1717-1738, November.
    35. Zheng, Leven J. & Xiong, Chang & Chen, Xihui & Li, Chung-Sheng, 2021. "Product innovation in entrepreneurial firms: How business model design influences disruptive and adoptive innovation," Technological Forecasting and Social Change, Elsevier, vol. 170(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Maria Elisavet Balta & Thanos Papadopoulos & Konstantina Spanaki, 2024. "Business model pivoting and digital technologies in turbulent environments," Post-Print hal-04513406, HAL.
    2. Santos, Susana C. & Liguori, Eric W. & Garvey, Erin, 2023. "How digitalization reinvented entrepreneurial resilience during COVID-19," Technological Forecasting and Social Change, Elsevier, vol. 189(C).
    3. Shore, Adam & Tiwari, Manisha & Tandon, Priyanka & Foropon, Cyril, 2024. "Building entrepreneurial resilience during crisis using generative AI: An empirical study on SMEs," Technovation, Elsevier, vol. 135(C).
    4. Crespo, Nuno Fernandes & Crespo, Cátia Fernandes & Silva, Graça Miranda & Nicola, Maura Bedin, 2023. "Innovation in times of crisis: The relevance of digitalization and early internationalization strategies," Technological Forecasting and Social Change, Elsevier, vol. 188(C).
    5. Klöckner, Maximilian & Schmidt, Christoph G. & Wagner, Stephan M. & Swink, Morgan, 2023. "Firms’ responses to the COVID-19 pandemic," Journal of Business Research, Elsevier, vol. 158(C).
    6. Ute Stephan & Przemysław Zbierowski & Ana Pérez-Luño & Dominika Wach & Johan Wiklund & Marisleidy Alba Cabañas & Edgard Barki & Alexandre Benzari & Claudia Bernhard-Oettel & Janet A. Boekhorst & A, 2023. "Act or Wait-and-See? Adversity, Agility, and Entrepreneur Wellbeing across Countries during the COVID-19 Pandemic," Entrepreneurship Theory and Practice, , vol. 47(3), pages 682-723, May.
    7. Chhatwani, Malvika & Mishra, Sushanta Kumar & Varma, Arup & Rai, Himanshu, 2022. "Psychological resilience and business survival chances: A study of small firms in the USA during COVID-19," Journal of Business Research, Elsevier, vol. 142(C), pages 277-286.
    8. Uma Shankar Yadav & Ravindra Tripathi & Mano Ashish Tripathi & Indrajit Ghosal & Ashish Kumar & Mitu Mandal & Akanksha Singh, 2023. "Digital and innovative entrepreneurship in the Indian handicraft sector after the COVID-19 pandemic: challenges and opportunities," Journal of Innovation and Entrepreneurship, Springer, vol. 12(1), pages 1-40, December.
    9. Ali E. Ahmed & Deniz Ucbasaran & Gabriella Cacciotti & Trenton A. Williams, 2022. "Integrating Psychological Resilience, Stress, and Coping in Entrepreneurship: A Critical Review and Research Agenda," Entrepreneurship Theory and Practice, , vol. 46(3), pages 497-538, May.
    10. Onea Ioana Alexandra, 2022. "Exploring the COVID-19 pandemic impact on innovation and entrepreneurship – Review and evidence from Global Innovation Index," Proceedings of the International Conference on Business Excellence, Sciendo, vol. 16(1), pages 527-544, August.
    11. Douglas Cumming & Sofia Johan & Zaheer Khan & Martin Meyer, 2023. "E-Commerce Policy and International Business," Management International Review, Springer, vol. 63(1), pages 3-25, February.
    12. Issah, Wunnam & Calabrò, Andrea & Clauss, Thomas & Valentino, Alfredo & Diaz-Matajira, Luis, 2024. "Wait or pivot? Family and non-family firms’ strategic responses to COVID-19 and employment change," Journal of Business Research, Elsevier, vol. 184(C).
    13. He, Guojun Sawyer & Tran, Thi Thanh Huong & Leonidou, Leonidas C., 2024. "It's here to stay: Lessons, reflections, and visions on digital transformation amid public crisis," Technological Forecasting and Social Change, Elsevier, vol. 206(C).
    14. Crespo, Nuno Fernandes & Crespo, Cátia Fernandes & Silva, Graça Miranda, 2024. "Every cloud has a silver lining: The role of business digitalization and early internationalization strategies to overcome cloudy times," Technological Forecasting and Social Change, Elsevier, vol. 200(C).
    15. David B. Audretsch & Seham Ghalwash & Iñaki Peña-Legazkue, 2024. "The resilient self-employability of women and senior people after sudden economic shocks," International Entrepreneurship and Management Journal, Springer, vol. 20(3), pages 1649-1675, September.
    16. John Kiplangat Cheruiyot BA DipEd MSc MBA, 2024. "The Resilience of Micro and Small Enterprises in Kenya from a Strategic Perspective: A Systematic Literature Review," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(3s), pages 3197-3218, August.
    17. Ali, Imran & Arslan, Ahmad & Chowdhury, Maruf & Khan, Zaheer & Tarba, Shlomo Y., 2022. "Reimagining global food value chains through effective resilience to COVID-19 shocks and similar future events: A dynamic capability perspective," Journal of Business Research, Elsevier, vol. 141(C), pages 1-12.
    18. Zhan, Yuqing & Li, Wanhong, 2024. "Has digital transformation enhanced the resilience of manufacturing enterprises?," International Review of Economics & Finance, Elsevier, vol. 96(PB).
    19. Su, Wenjia & Junge, Sebastian, 2023. "Unlocking the recipe for organizational resilience: A review and future research directions," European Management Journal, Elsevier, vol. 41(6), pages 1086-1105.
    20. Lin, Jiabao & Fan, Yuchen, 2024. "Seeking sustainable performance through organizational resilience: Examining the role of supply chain integration and digital technology usage," Technological Forecasting and Social Change, Elsevier, vol. 198(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jobuve:v:22:y:2024:i:c:s2352673424000520. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/journal-of-business-venturing-insights .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.