Every cloud has a silver lining: The role of business digitalization and early internationalization strategies to overcome cloudy times

In this research we explore, building on dynamic capabilities, the influence that certain strategies followed by international new ventures (INVs) have on their responses to the COVID-19 crisis. Specifically, we access the effect of business digitalization, early internationalization and internet international strategy on two possible responses to the crisis. Through the data gathered by a survey of 153 INVs, we were able to test the hypothesized framework using partial least squares structural equation modeling (PLS-SEM) technique. We find that all the hypothesized relationships were confirmed. Therefore, business digitalization strategy, early internationalization strategy and internet international strategy have a positive effect of both responses to the crisis: production recovery (short-term response) and digital transformation (long-term response). This study provides two insightful contributes to the international entrepreneurship field: i) these three strategies (business digitalization, early internationalization and internet international focus) incorporate dynamic capabilities that give INVs advantages in reacting to a crisis; and ii) faced with a crisis situation, INVs simultaneously implement short-term and long-term responses.