Surviving and Growing in Times of Crisis: A Resource Dependence View of Firm Ownership

60 Pages Posted: 14 Apr 2021 Last revised: 26 Jul 2023

See all articles by Yu Liu

Yu Liu

University of Texas Rio Grande Valley

Mike Peng

University of Texas at Dallas

Zuobao Wei

University of Texas at El Paso

Jian Xu

Fort Hays State University

Lixin Colin Xu

Cheung Kong Graduate School of Business

Date Written: July 10, 2023

Abstract

This study uses resource dependence theory to examine the effect of state, foreign, and parental ownership on SMEs' survival and growth during the COVID-19 pandemic. Based on data from the World Bank's surveys conducted between May 2020 and August 2022 across 44 countries, which focus on small and medium-sized enterprises (SMEs), our findings reveal that firms with state and parental ownerships have a higher likelihood of surviving and growing during the pandemic, while foreign ownership exerts little impact. Furthermore, state and parental ownership have a positive effect on firm growth during the pandemic but have no significant effect in normal times. The ownership-performance relation varies as firms pass the initial pandemic shocks and move to the recovery stage, and parental ownership is especially crucial for firms’ survival and growth during the pandemic. From a resource-dependence perspective, our study highlights the varying effects of different ownership types during the pandemic.

Keywords: Resource dependence theory, Ownership, Firm survival and growth; COVID-19; SMEs

JEL Classification: G01, G32, G38

Suggested Citation

Liu, Yu and Peng, Mike and Wei, Zuobao and Xu, Jian and Xu, Lixin Colin, Surviving and Growing in Times of Crisis: A Resource Dependence View of Firm Ownership (July 10, 2023). Available at SSRN: https://ssrn.com/abstract=3823869 or http://dx.doi.org/10.2139/ssrn.3823869

Yu Liu

University of Texas Rio Grande Valley ( email )

1201 W. University Dr.
Edinburg, TX
United States

Mike Peng

University of Texas at Dallas ( email )

2601 North Floyd Road
Richardson, TX 75083
United States

Zuobao Wei

University of Texas at El Paso ( email )

500 W. University Ave.
El Paso, TX 79968
United States
915-747-5381 (Phone)
915-747-6282 (Fax)

Jian Xu

Fort Hays State University ( email )

Hays, KS 67601
United States

Lixin Colin Xu (Contact Author)

Cheung Kong Graduate School of Business ( email )

1017, Oriental Plaza 1
No.1 Dong Chang'an Street
Beijing
China

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