200
Views
1
CrossRef citations to date
0
Altmetric
Research Article

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

ORCID Icon

References

  • Acharya, V. V., and S. Steffen. 2020. “The Risk of Being a Fallen Angel and the Corporate Dash for Cash in the Midst of COVID.” The Review of Corporate Finance Studies 9 (3): 430–71. doi:10.1093/rcfs/cfaa013.
  • Adam, N. A., and G. Alarifi. 2021. “Innovation Practices for Survival of Small and Medium Enterprises (SMEs) in the COVID-19 Times: The Role of External Support.” Journal of Innovation and Entrepreneurship 10 (1): 1–22. doi:10.1186/s13731-021-00156-6.
  • Adžić, S., and J. Al-Mansour. 2021. “The Negative Impact of COVID-19 on Firms: Insights from Serbia.” Eastern European Economics 59 (5): 472–86. doi:10.1080/00128775.2021.1953387.
  • Aghion, P., N. Bloom, R. Blundell, R. Griffith, and P. Howitt. 2005. “Competition and Innovation: An Inverted-U Relationship.” Quarterly Journal of Economics 120 (2): 701–28. doi:10.1162/0033553053970214
  • Aldrich, H. E., and E. Auster. 1986. “Even Dwarfs Started Small: Liabilities of Size and Age and Their Strategic Implications.” Research in Organizational Behavior 8:165–98.
  • Amin, M., and D. Viganola. 2021. “Does Better Access to Finance Help Firms Deal with the COVID-19 Pandemic? Evidence from Firm-Level Survey Data.” Policy Research Working Paper 9697, World Bank.
  • Apedo-Amah, M. C., B. Avdiu, X. Cirera, M. Cruz, E. Davies, A. Grover, L. Iacovone, U. Kilinc, D. Medvedev, F. O. Maduko, et al. 2020. “Unmasking the Impact of COVID-19 on Businesses: Firm Level Evidence from Across the World.” Policy Research Working Paper Series 9434, The World Bank. doi:10.1596/1813-9450-9434.
  • Asiedu, E., I. Kanyama, L. Ndikumana, and A. Nti-Addae. 2013. “Access to Credit by Firms in Sub-Saharan Africa: How Relevant is Gender?” American Economic Review 103 (3): 293–97. doi:10.1257/aer.103.3.293
  • Aterido, R., T. Beck, and L. Iacovone. 2013. “Access to Finance in Sub-Saharan Africa: Is There a Gender Gap?” World Development 47 (C): 102–20. doi:10.1016/j.worlddev.2013.02.013
  • Bartik, A. W., M. Bertrand, Z. B. Cullen, E. L. Glaeser, M. Luca, and C. T. Stanton. 2020. “How are Small Businesses Adjusting to Covid-19? Early Evidence from a Survey.” National Bureau of Economic Research Working Paper 26989. doi: 10.3386/w26989.
  • Baumöhl, E., and E. Kočenda. 2022. “How Firms Survive in European Emerging Markets: A Survey.” Eastern European Economics 60 (5): 393–417. doi:10.1080/00128775.2022.2099422
  • Beck, T., and A. Demirgüç-Kunt. 2006. “Small and Medium -Size Enterprises: Access to Finance as a Growth Constraint.” Journal of Banking and Finance 30 (11): 2931–43. doi:10.1016/j.jbankfin.2006.05.009
  • Bhattacharya, S., and R. Ritter. 1983. “Innovation and Communication: Signalling with Partial Disclosure.” The Review of Economic Studies 50 (2): 331–46. doi:10.2307/2297419.
  • Bigsten, A., P. Collier, S. Dercon, M. Fafchamps, B. Gauthier, J. W. Gunning, A. Oduro, R. Oostendorp, C. Patillo, M. Söderbom, et al. 2003. “Credit Constraints in Manufacturing Enterprises in Africa.” Journal of African Economies 12 (1): 104–25. doi:10.1093/jae/12.1.104
  • Børing, P. 2015. “The Effects of Firms’ R&D and Innovation Activities on Their Survival: A Competing Risks Analysis.” Empirical Economics 49 (3): 1045–69. doi:10.1007/s00181-014-0901-z.
  • Boyer, T., and R. Blazy. 2014. “Born to Be Alive? The Survival of Innovative and Non-Innovative French Micro-Start-Ups.” Small Business Economics 42 (4): 669–83. doi:10.1007/s11187-013-9522-8.
  • Brucal, A., Z. Ilagan, A. Grover, and S. R. Ortega. 2021. “Damaged by the Disaster: The Impact of COVID-19 on Firms in South Asia.” Policy Research Working Paper Series 9604, The World Bank.
  • Buddelmeyer, H., P. H. Jensen, and E. Webster. 2010. “Innovation and the Determinants of CompanySurvival.” Oxford Economic Papers 62 (2): 261–85. doi:10.1093/oep/gpp012
  • Cefis, E., E. Bartoloni, and M. Bonati. 2020. “Show Me How to Live: Firms’ Financial Conditions and Innovation During the Crisis.” Structural Change and Economic Dynamics 52:63–81. doi: 10.1016/j.strueco.2019.10.001
  • Cefis, E., and O. Marsili. 2005. “A Matter of Life and Death: Innovation and Firm Survival.” Industrial and Corporate Change 14 (6): 1167–92. doi:10.1093/icc/dth081
  • Cefis, E., and O. Marsili. 2006. “Survivor: The Role of Innovation in firms’ Survival.” Research Policy 35 (5): 626–41. doi:10.1016/j.respol.2006.02.006
  • Cefis, E., and O. Marsili. 2012. “Going, Going, Gone. Exit Forms and the Innovative Capabilities of Firms.” Research Policy 41 (5): 795–807. doi:10.1016/j.respol.2012.01.006.
  • Cefis, E., and O. Marsili. 2019. “Good Times, Bad Times: Innovation and Survival Over the Business Cycle.” Industrial and Corporate Change 28 (3): 565–87. doi:10.1093/icc/dty072
  • Cohen, W. M., and D. A. Levinthal. 1990. “Absorptive Capacity: A New Perspective on Learning and Innovation.” Administrative Science Quarterly 35 (1): 128–52. doi:10.2307/2393553
  • Colombelli, A., J. Krafft, and M. Vivarelli. 2016. “To Be Born is Not Enough: The Key Role of Innovative Start-Ups.” Small Business Economics 47 (2): 277–91. doi:https://doi.org/10.1007/s11187-016-9716-y
  • Dai, M., H. Liu, and L. Lin. 2020. “How Innovation Impacts Firms’ Export Survival: Does Export Mode Matter?” The World Economy 43 (1): 81–113. doi:10.1111/twec.12847.
  • Demmou, L., G. Franco, S. Calligaris, and D. Dlugosch. 2021. “Liquidity Shortfalls During the COVID-19 Outbreak: Assessment and Policy Responses”. OECD Economics Department Working Papers 1647, doi:10.1787/581dba7f-en.
  • De Vito, A., and J.-P. Gomez. 2020. “Estimating the COVID-19 Cash Crunch: Global Evidence and Policy.” Journal of Accounting and Public Policy 39 (2): 1–14. doi:10.1016/j.jaccpubpol.2020.106741.
  • Didier, T., F. Huneeus, M. Larrain, and S. L. Schmukler. 2021. “Financing Firms in Hibernation During the COVID-19 Pandemic.” Journal of Financial Stability 53 (100837): 1–14. doi:10.1016/j.jfs.2020.100837
  • Ebeke, C., N. Jovanovic, L. Valderrama, and J. Zhou. 2021. “Corporate Liquidity and Solvency in Europe During COVID-19: The Role of Policies.” IMF Working Paper 2021/056.
  • Ericson, R., and A. Pakes. 1995. “Markov-Perfect Industry Dynamics: A Framework for Empirical Work.” The Review of Economic Studies 62 (1): 53–82. doi:10.2307/2297841.
  • Fang, S., K. Goh, S. Li, and L. C. Xu. 2022. “Firm Resources, Strategies, and Survival and Growth During COVID-19: Evidence from Two-Wave Global Surveys.” Policy Research Working Paper 9997.
  • Fernandes, A. M., and C. Paunov. 2015. “The Risks of Innovation: Are Innovating Firms Less Likely to Die?” The Review of Economics and Statistics 97 (3): 638–53. doi:10.1162/REST_a_00446
  • Gajewski, P., and G. Tchorek. 2017. “What Drives Export Performance of Firms in Eastern and Western Poland?” European Planning Studies 25 (12): 2250–71. doi:10.1080/09654313.2017.1355890
  • Gorodnichenko, Y., and M. Schnitzer. 2013. “Financial Constraints and Innovation: Why Poor Countries Don’t Catch Up.” Journal of the European Economic Association 11 (5): 1115–52. doi:10.1111/jeea.12033.
  • Gourinchas, P. O., S. Kalemli-Özcan, V. Penciakova, and N. Sander. 2021. “Covid-19 and SME Failures.” NBER Working Paper No. 27877, National Bureau of Economic Research.
  • Gupta, A. 2019. “R&D and Firm Resilience During Bad Times,” Discussion Papers 2019-12, University of Nottingham, GEP.
  • Hale, T., N. Angrist, R. Goldszmidt, B. Kira, A. Petherick, T. Phillips, S. Webster, E. Cameron-Blake, L. Hallas, S. Majumdar, et al. 2021. “A Global Panel Database of Pandemic Policies (Oxford COVID-19 Government Response Tracker).” Nature Human Behaviour 5 (4): 529–38. doi:10.1038/s41562-021-01079-8
  • Hall, B. H. 2010. “The Financing of Innovative Firms.” Review of Economics and Institutions 1 (1): 1–30. doi:10.5202/rei.v1i1.4.
  • Hall, B., and J. Lerner Hall. 2010. “The Financing of R&D and Innovation”. In Handbook of the Economics of Innovation, Vol. 1, In B. Hall and N. Rosenberg edited by, 609–39. 1 Amsterdam: Elsevier. 10.1016/S0169-7218(10)01014-2
  • Hansen, H., and J. Rand. 2014a. “Estimates of Gender Differences in Firm’s Access to Credit in Sub-Saharan Africa.” Economics Letters 123 (3): 374–77. doi:10.1016/j.econlet.2014.04.001
  • Hansen, H., and J. Rand. 2014b. ““The Myth of Female Credit Discrimination in African Manufacturing.” International Journal of Offshore and Polar Engineering 50 (1): 81–96. doi:10.1080/00220388.2013.849337
  • Helmers, C., and M. Rogers. 2010. “Innovation and the Survival of New Firms in the UK.” Review of Industrial Organization 36 (3): 227–48. doi:10.1007/s11151-010-9247-7.
  • Hyytinen, A., M. Pajarinen, and P. Rouvinen. 2015. “Does Innovativeness Reduce Startup Survival Rates?” Journal of Business Venturing 30 (4): 564–81. doi:10.1016/j.jbusvent.2014.10.001
  • Iancu, A., L. Popescu, A. A. Varzaru, and C. D. Avram. 2022. “Impact of COVID-19 Crisis and Resilience of Small and Medium Enterprises. Evidence from Romania.” Eastern European Economics 60 (4): 352–74. doi:10.1080/00128775.2022.2032177.
  • Iwasaki, I., and E. Kočenda. 2020. “Survival of Service Firms in European Emerging Economies.” Applied Economics Letters 27 (4): 340–48. doi:10.1080/13504851.2019.1616053.
  • Jebran, K., and S. Chen. 2023. “Can We Learn Lessons from the Past? COVID-19 Crisis and Corporate Governance Responses.” International Journal of Finance & Economics 28 (1): 421–29. doi:10.1002/ijfe.2428
  • Jennings, J. E., and C. G. Brush. 2013. “Research on Women Entrepreneurs: Challenges to (And From) the Broader Entrepreneurship Literature?” The Academy of Management Annals 7 (1): 663–715. doi:10.5465/19416520.2013.782190.
  • Jovanovic, B. 1982. “Selection and the Evolution of Industry.” Econometrica 50 (3): 649–70. doi:10.2307/1912606
  • Khan, S. U. 2022. “Financing Constraints and Firm-Level Responses to the COVID-19 Pandemic: International Evidence.” Research in International Business and Finance 59 (C): 101545. doi:10.1016/j.ribaf.2021.101545
  • Kozeniauskas, N., P. Moreira, and C. Santos. 2020. “COVID-19 and Firms: Productivity and Government Policies.” CEPR Discussion Paper No. DP15156.
  • Krammer, S. M. 2022. “Navigating the New Normal: Which Firms Have Adapted Better to the COVID-19 Disruption?” Technovation 110:102368. doi: 10.1016/j.technovation.2021.102368.
  • Kuntchev, V., R. Ramalho, J. Rodríguez-Meza, and J. S. Yang. 2014. “What Have We Learned from the Enterprise Survey Regarding Access to Finance by SMEs?” World Bank Policy Research Working Paper 6670. doi:10.1596/1813-9450-6670.
  • Lalinsky, T., and R. Pál. 2021. “Efficiency and Effectiveness of the COVID-19 Government Support: Evidence from Firm-Level Data EIB”. Working Papers No. 2021/06.
  • Liu, Y., S. Wei, and J. Xu. 2021. “COVID-19 and Women-Led Businesses Around the World.” Finance Research Letters 43:102012. doi: 10.1016/j.frl.2021.102012
  • Malerba, L., and L. Orsenigo. 2000. “Knowledge, Innovative Activities and Industrial Evolution.” Industrial and Corporate Change 9 (2): 289–314. doi:10.1093/icc/9.2.289
  • Manjón-Antolín, M. C., and J. M. Arauzo-Carod. 2008. “Firm Survival: Methods and Evidence.” Empirica 35 (1): 1–24. doi:10.1007/s10663-007-9048-x.
  • Mirza, N., B. Rahat, B. Naqvi, and S. A. Rizvi. 2020. “Impact of COVID-19 on Corporate Solvency and Possible Policy Responses in the EU.” The Quarterly Review of Economics and Finance: Journal of the Midwest Economics Association 87:181–90. In Press. doi:10.1016/j.qref.2020.09.002.
  • Muravyev, A., O. Talavera, and D. Schäfer. 2009. “Entrepreneurs’ Gender and Financial Constraints: Evidence from International Data.” Journal of Comparative Economics 37 (2): 270–86. doi:10.1016/j.jce.2008.12.001.
  • Muzi, S., F. Jolevski, K. Ueda, and D. Viganola. 2021. “Productivity and Firm Exit During the COVID-19 Crisis: Cross-Country Evidence.” Policy Research Working Paper Series 9671, The World Bank.
  • Nelson, R. R., and S. G. Winter. 1982. An Evolutionary Theory of Economic Change. Cambridge: Belknap Press/Harvard University Press.
  • OECD/Eurostat. 2005. Oslo Manual for Collecting and Interpreting Innovation Data. OECD Publishing.
  • Oluremi, B., A. C. Ayoko, and J. Mendy. 2022. “Management Research Contributions to the COVID-19: A Bibliometric Literature Review and Analysis of the Contributions from the Journal of Management & Organization.” Journal of Management & Organization 27 (6): 1183–209. doi:https://doi.org/10.1017/jmo.2021.70.
  • Penrose, E. T. 1959. The Theory of the Growth of the Firm. New York: John Wiley.
  • Pereira, H. M. F., and M. S. M. Saes. 2022. “Government Support and Institutions’ Intermediation Throughout Companies’ Adaptation to the COVID-19 Crisis.” Sustainability 14 (9): 1–16. doi:https://doi.org/10.3390/su14095450
  • Pham, T. B. D., and H. P. Nguyen. 2022. “What Exacerbates the Probability of Business Closure in the Private Sector During the COVID-19 Pandemic? Evidence from World Bank Enterprise Survey Data.” The Journal of Asian Finance, Economics & Business 9 (6): 69–79. doi:10.13106/JAFEB.2022.VOL9.NO6.0069.
  • Rosenbusch, N., J. Brinckmann, and A. Bausch. 2011. “Is Innovation Always Beneficial? A Meta-Analysis of the Relationship Between Innovation and Performance in SMEs.” Journal of Business Venturing 26 (4): 441–57. doi:10.1016/j.jbusvent.2009.12.002
  • Schumpeter, J. A. 1934. The Theory of Economic Development. London: Oxford University Press.
  • Schumpeter, J. A. 1942. Capitalism, Socialism, and Democracy. New York: Harper & Bros.
  • Sidorkin, O., and M. Srholec. 2014. “Surviving the Times of Crisis: Does Innovation Make a Difference?.” International Journal of Technological Learning, Innovation and Development 7 (2): 124–46. doi:10.1504/IJTLID.2014.065881.
  • Song, M., K. Podoynitsyna, H.Van Der Bij, and J. I. M. Halman. 2007. “Success Factors in New Ventures: A Meta-Analysis”. Journal of Product Innovation Management 25 (1): 7–27. 10.1111/j.1540-5885.2007.00280.x
  • Stinchcombe, A. L. 1965. “Social Structure and Organizations.” In Handbook of Organizations, edited by J. P. March, 142–93. Chicago: Rand McNally.
  • Svetina, A. C., and I. Prodan. 2008. “How Internal and External Sources of Knowledge Contribute to Firms’ Innovation Performance.” Managing Global Transitions 6 (3): 277–99.
  • Teece, D. J., and G. Pisano. 1994. “The Dynamic Capabilities of Firms: An Introduction.” Industrial and Corporate Change 3 (3): 537–56. doi:10.1093/icc/3.3.537-a
  • Teece, D. J., G. Pisano, and A. Shuen. 1997. “Dynamic Capabilities and Strategic Management.” Strategic Management Journal 18 (7): 509–33. doi:10.1002/(SICI)1097-0266(199708)18:7<509:AID-SMJ882>3.0.CO;2-Z
  • Ugur, M., E. Trushin, and E. Solomon. 2016. “Inverted-U Relationship Between R&D Intensity and Survival: Evidence on Scale and Complementarity Effects in UK Data.” Research Policy 45 (7): 1474–92. doi:10.1016/j.respol.2016.04.007
  • Ugur, M., and M. Vivarelli. 2021. “Innovation, Firm Survival and Productivity: The State of the Art.” Economics of Innovation & New Technology 30 (5): 433–67. doi:10.1080/10438599.2020.1828509.
  • Wagner, J. 2007. “Exports and Productivity: A Survey of the Evidence from Firm‐Level Data.” The World Economy 30 (1): 60–82. doi:10.1111/j.1467-9701.2007.00872.x
  • Wellalage, N. H., S. Thrikawala, and W. Ghardallou. 2022. “Political Connections, Family Ownership and Access to Bank Credit.” Finance Research Letters 50 (C): 103347. doi:https://doi.org/10.1016/j.frl.2022.103347
  • Wernerfelt, B. 1984. “A Resource-Based View of the Firm.” Strategic Management Journal 5 (2): 171–80. doi:10.1002/smj.4250050207
  • World Bank. 2020. Global Economic Prospects, June. Washington, DC: World Bank.
  • Zahra, S. A., and G. George. 2002. “Absorptive Capacity: A Review, Reconceptualization, and Extension.” Academy of Management Review 27 (2): 185–203. doi:10.2307/4134351
  • Zhang, D. 2021. “Impacts of Credit Constraints on Innovation Propensity and Innovation Performance: Evidence from China and India.” Asia-Pacific Journal of Accounting and Economics 30 (2): 304–26. doi:10.1080/16081625.2021.1872033
  • Zhang, M., and P. Mohnen. 2022. “R&D, Innovation and Firm Survival in Chinese Manufacturing, 2000–2006.” Eurasian Business Review 12 (1): 59–95. doi:10.1007/s40821-021-00200-1.
  • Zhang, D., and G. Sogn-Grundvåg. 2022. “Credit Constraints and the Severity of COVID-19 Impact: Empirical Evidence from Enterprise Surveys.” Economic Analysis and Policy 74:337–49. doi: 10.1016/j.eap.2022.03.005
  • Zhang, D., W. Zheng, and L. Ning. 2018. “Does Innovation Facilitate Firm Survival? Evidence from Chinese High-Tech Firms.” Economic Modelling 75 (C): 458–68. doi:10.1016/j.econmod.2018.07.030.

Reprints and Corporate Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

To request a reprint or corporate permissions for this article, please click on the relevant link below:

Academic Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

Obtain permissions instantly via Rightslink by clicking on the button below:

If you are unable to obtain permissions via Rightslink, please complete and submit this Permissions form. For more information, please visit our Permissions help page.