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Covid-19 and Business Failures: The Paradoxes of Experience, Scale and Scope for Theory and Practice

Amankwah-Amoah, Joseph, Khan, Zaheer, Wood, Geoffrey (2020) Covid-19 and Business Failures: The Paradoxes of Experience, Scale and Scope for Theory and Practice. European Management Journal, . ISSN 0263-2373. (doi:10.1016/j.emj.2020.09.002) (KAR id:82752)

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https://doi.org/10.1016/j.emj.2020.09.002

Abstract

In light of growing scholarly works on business failure across the social science domains, it is surprising that past studies have largely overlooked how extreme environmental shocks and ‘black swan’ events such as those caused by the coronavirus (COVID-19) pandemic and other global crisis, can precipitate business failures. Drawing insights from the current literature on business failure and the unfolding event of COVID-19, we highlight the paradoxes posed by novel exogenous shocks (that is, shocks that transcend past experiences) and the implications for SMEs. The pandemic has accelerated the reconfiguration of the relationship between state and markets, increasing the divide between those with political connections and those without, it may pose new legitimacy challenges for some players even as others seem less concerned by such matters, whilst experiential knowledge resources may be both an advantage and a burden.

Item Type: Article
DOI/Identification number: 10.1016/j.emj.2020.09.002
Uncontrolled keywords: business failure; paradox organizational failure; closure; exit; COVID-19; novel global crisis
Subjects: H Social Sciences
Divisions: Divisions > Kent Business School - Division > Department of Marketing, Entrepreneurship and International Business
Depositing User: Joseph Amankwah-Amoah
Date Deposited: 03 Sep 2020 16:54 UTC
Last Modified: 08 Oct 2021 15:55 UTC
Resource URI: https://kar.kent.ac.uk/id/eprint/82752 (The current URI for this page, for reference purposes)
Amankwah-Amoah, Joseph: https://orcid.org/0000-0003-0383-5831
Khan, Zaheer: https://orcid.org/0000-0001-5538-3123
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