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Unboxing organisational complexity: how does it affect business performance during the COVID-19 pandemic?

Author

Listed:
  • Jorgina Pereira
  • Vitor Braga
  • Aldina Correia
  • Aidin Salamzadeh

Abstract

Purpose - This study aims to distinguish businesses by their degree of complexity and to analyse the influence of complexity on the performance of firms during the coronavirus disease 2019 (COVID-19) pandemic. Design/methodology/approach - Data were collected from 468 businesses, and various multivariate statistical techniques were used. Initially a factor analysis was conducted, organising variables into five factors. A discriminant analysis, performed with the five factors, allowed discriminating firms based on whether they internationalise or not. A linear regression was performed in order to estimate the contribution of each factor in the business performance. Findings - The results suggest the existence of additional variables for measuring the complexity. From the factorial analysis it is possible to conclude that business complexity can be explained by size, indebtedness and profitability, internationalisation, number of employees, and age and leverage. Total assets, indebtedness and age are the variables that contribute the most to business performance. On the other hand, indebtedness, internationalisation, age and leverage are the independent variables that most contribute to explain business performance. Originality/value - This paper presents advances in two ways. First, it proposes measures of complexity (highly debatable in the literature). It also proposes internationalisation as an explanation of complexity. Second, this paper sheds light on businesses decisions to grow, taking into account how complexity may affect performance.

Suggested Citation

  • Jorgina Pereira & Vitor Braga & Aldina Correia & Aidin Salamzadeh, 2021. "Unboxing organisational complexity: how does it affect business performance during the COVID-19 pandemic?," Journal of Entrepreneurship and Public Policy, Emerald Group Publishing Limited, vol. 10(3), pages 424-444, August.
    • Handle: RePEc:eme:jepppp:jepp-06-2021-0070
    DOI: 10.1108/JEPP-06-2021-0070
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    Citations

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    Cited by:

    1. Nitin Verma & Kenneth R. Fleischmann & Le Zhou & Bo Xie & Min Kyung Lee & Kate Rich & Kristina Shiroma & Chenyan Jia & Tara Zimmerman, 2022. "Trust in COVID‐19 public health information," Journal of the Association for Information Science & Technology, Association for Information Science & Technology, vol. 73(12), pages 1776-1792, December.
    2. Nagy Marek & Valaskova Katarina, 2023. "An Analysis of the Financial Health of Companies Concerning the Business Environment of the V4 Countries," Folia Oeconomica Stetinensia, Sciendo, vol. 23(1), pages 170-193, June.

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