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Erschienen in: Journal of International Entrepreneurship 2/2020

10.07.2020

Managing uncertain consequences of a global crisis: SMEs encountering adversities, losses, and new opportunities

verfasst von: Hamid Etemad

Erschienen in: Journal of International Entrepreneurship | Ausgabe 2/2020

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The release of this issue coincides with the time that humanity is encountering a global crisis and unprecedented uncertainties. The coronavirus (COVID-19) has exposed the world to uncertainties that have not been experienced before. More than 190 countries, more than 10 million people, 1 have been infected and for the past 6 months, country-after-country has been inflicted by the COVID-19 2 pandemic at different levels, each imposing massive costs and unfathomable uncertainties. Countries as a whole, and their national and local governments, faced the pandemic crisis underprepared, if not unprepared, and found no time to prepare adequately. Metropolises, large cities, and even small cities faced the challenge of dealing with a fast-expanding world-wide pandemic, engulfing nearly all population centers. Nearly all institutions were affected to varying degrees, but small- and medium-sized enterprises (SMEs) and especially internationalized (iSMEs) suffered the most. …
Fußnoten
2
The World Health Organization (WHO) called the coronavirus with the acronym of COVID-19 and declared the crisis as a pandemic on March 11, 2020, and preventative locked-down started soon after, if not earlier.
 
3
While the world-wide stock market indices have lost value in 2020 so far, the general index of high-technology and the Internet-based companies has increased more than 15% in the past 6 months.
 
4
Many countries and regions are experiencing the second wave of the COVID, which is paralyzing the affected member and institutions the were adversely impacted earlier.
 
5
Generally, the top enterprise management teams (TMTs) are somewhat isolated from the direct impact of smaller crises as it is unfolding and may not experience its full impact. Consider, for example, that lower echelon managers and employees were fired or laid-off while the firm’s CEO and members of the top management team were not directly affected nor suffer similarly.
 
6
Reportedly, rapidly growing internationalized medium-sized enterprises reconfigured and redeployed parts of their facilities rapidly to fabricate and provide goods locally to reduce shortages in products previously imported from international markets. For example, Canada Goose, manufacturer of luxury winter clothing, began making personal protective garments for hospital staff (see an article entitled as “TORONTO – Canada Goose Holdings Inc. is moving to increase its domestic production of personal protective equipment for health-care workers across Canada at https://globalnews.ca/news/6798844/canada-goose-production-medical-ppe-coronavirus/ visited on April 19, 2020). Similarly, many other companies, including CCM Sporting Equipment and Yoga Jeans, began producing protective visors, glasses, and gowns for essential workers and hospital staff members (see article entitled as “Quebec companies answer the call to provide protective equipments” at https://​montrealgazette.​com/​business/​local-business/​masks-and-ppes... -- visited on June 8, 2020). For all of the above companies, their sales required very different distribution channels, such as pharmacies and hospital supply companies that are far from clothing and sport equipment.
 
7
The US-based 3M was ordered not to ship N95 face mask to Canada in March–April 2020. Similarly, some Chinese suppliers refused to ship previously placed and paid-for ordered supplies.
 
8
Given the critical influence of information, a brief Akerlofian type of information and information technology is presented next. However, there is a need for extensive Information and communication capabilities to reduce, and hopefully avoid, the adverse impacts of an unfolding crisis.
 
9
Similar arguments apply to national preparedness and national security over time to shield individual and corporate citizens from bearing short-term or long-term high costs—the national costs per capita may pale relative to the immeasurable costs of human mortalities paid by the deceased people and their families, the massive unemployment, or high costs related to shortages in major crises, such as the COVID-19 pandemic.
 
10
The term “cognitive dissonance” in marketing and psychology refers to the above feeling of discomfort regarding the prevailing uncertainty.
 
11
As compared with science-based start-ups, market-oriented start-ups have a clearer perception of demand in the marketplace. Science- and technology-based start-ups offer novel science and technology solutions to a range of problems, each of which require adaptation to solve the problem, which in turn pose higher commercialization uncertainties of theirs own. Therefore, science- and technology-based new ventures offer rich possibilities for examining NVT management of uncertainties facing them.
 
12
EU’s five freedoms were ratified by its first 12 members before the end of 1993 and more harmonizing EU-wide conventions, such as Maastricht Treaty, Schengen Agreement, and many others, have formalized a relatively harmonized environment in the EU’s current 27 member countries.
 
13
In favor of full disclosure, I leave in the province of Quebec, Canada, that provides generous formal and informal support to young families and nascent enterprises under distress; but this is not the case elsewhere.
 
14
A typical physician has at least 20 years of formal education and training, which put them in the highest levels of highly educated people in advanced countries.
 
15
In fields such as, strength of materials and structural design, “metal fatigue” is a topic of notable importance as it may lead to cracks, breakdowns, and possible failure, if not destructions. For example, low-frequency vibrations and frequent thermal expansion and contractions have caused stress concentrations that may eventually cause propagating cracks and eventual failures in airliners and ocean-going freight liners.
 
16
Consider for example, work stations on a mass-production assembly line designed for delivering maximum efficiency regardless of workers’ distance from each other.
 
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Metadaten
Titel
Managing uncertain consequences of a global crisis: SMEs encountering adversities, losses, and new opportunities
verfasst von
Hamid Etemad
Publikationsdatum
10.07.2020
Verlag
Springer US
Erschienen in
Journal of International Entrepreneurship / Ausgabe 2/2020
Print ISSN: 1570-7385
Elektronische ISSN: 1573-7349
DOI
https://doi.org/10.1007/s10843-020-00279-z

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