Organizational Resources, Country Institutions, and National Culture behind Firm Survival and Growth during COVID-19
This paper provides one of the first comprehensive and most updated studies on the effects of firms’ organizational resources, country institutions, and national culture on the survival and growth of private firms around the world during the COVID-...
| Main Authors: | , , , , |
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| Format: | Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2021
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/944641618508961003/Organizational-Resources-Country-Institutions-and-National-Culture-behind-Firm-Survival-and-Growth-during-COVID-19 http://hdl.handle.net/10986/35455 |
| Summary: | This paper provides one of the first
comprehensive and most updated studies on the effects of
firms’ organizational resources, country institutions, and
national culture on the survival and growth of private firms
around the world during the COVID-19 pandemic. Analyzing
World Bank Enterprise Follow-up Surveys on COVID-19 that
cover 18,770 firms in 36 countries, the paper documents four
sets of findings. (1) During the pandemic, firms with
favorable organizational resources (state ownership and
affiliation with parent companies) are more likely to
survive and grow, whereas firms with foreign ownership or
more financial obstacles are less likely to survive or grow.
Firms in countries with a higher per capita income, a lower
COVID-19 spread, and a less stringent COVID-19 control
policy are more likely to survive and grow. (2) Favorable
ownership and parent-company affiliations help cushion the
pandemic shock during the pandemic. (3) The relationship
between firm characteristics and firm survival/growth is
significantly affected by the stringency of a country’s
COVID-19 policy. (4) Firm survival and growth are positively
related to a country’s cultural tendency in terms of
long-term orientation and are not significantly related to
uncertainty avoidance and individualism. The overall quality
of country governance is negatively linked to the odds for
firm survival as well as revenue and employment growth. |
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