Assessing the Factors Affecting the Formation of Damaged Knowledge-Based Companies in Coronavirus Crisis

Document Type : Research Article (Original Article)

Authors

1 MSc student of Information Technology Management, Faculty of Management and Industrial Engineering, Malek Ashtar University of Technology, Tehran, Iran.

2 Assistant Professor, Faculty of Management and Industrial Engineering, Malek Ashtar University of Technology, Tehran, Iran.

Abstract

Coronavirus outbreak and its economic consequences have damaged many Iranian knowledge-based companies, which are one of the most important means for achieving economic resilience during the sanctions period. So, in this article, we’ve considered factors affecting the formation of damaged knowledge-based companies’ strategies using a multiple case study method. Qualitative data of this study has collected through semi-structured interviews with CEOs of six damaged knowledge-based companies. Evidence suggests that in this crisis, smaller companies had less potential for adopting defensive strategies to reduce their costs and preferred to adopt appropriate reactive strategies with a hope of the imminent end of the crisis. On the other hand, the diversity of abilities and capabilities of companies significantly helps to find appropriate alternative solutions for earning money during the crisis period. In addition, while damaged companies have possessed financial supports of government immediately after the beginning of the crisis, this supports couldn’t prevent the adoption of defensive strategies by companies and just compensated a part of the financial consequences of the coronavirus pandemic crisis.

Keywords

References

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Journal of Improvement Management
Volume 14, Issue 4 - Serial Number 50
February 2021
Pages 113-135

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History

  • Receive Date: 05 November 2020
  • Revise Date: 28 December 2020
  • Accept Date: 03 January 2021

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