Responding to unexpected crises: The roles of slack resources and entrepreneurial attitude to build resilience.

Abstract

This study explores how entrepreneurial firms responded to - and displayed resilience in - coping with the uncertainty generated by an unexpected crisis. We examine how entrepreneurs leveraged slack resources to build organizational resilience and, thanks to their entrepreneurial attitude, could eventually turn adversities into opportunities. Through a multiple case study, four key entrepreneurial responses emerge about the type of slack resources (business or family) and extent of entrepreneurial attitude (favourable or unfavourable) leveraged: "waiting while seeding", "keeping business as usual", "striving to resist" and "surfing the pandemic". Slack resources, both business and family, can enable the absorption of a shock, contributing to building absorptive resilience,or the adaptation to the shock, contributing to building adaptive resilience. Yet, they are not sufficient to turn adversities into opportunities because firms also require a favourable entrepreneurial attitude to activate slack. Plain English Summary How entrepreneurial firms respond to - and display resilience in - coping with a crisis's uncertainty varies according to the entrepreneurial attitude of the entrepreneur and the typology of slack resource leveraged. We find that these firms responded to the Covid 19 crisis either through: "waiting while seeding", "keeping business as usual", "striving to resist" or "surfing the pandemic". The four responses differ in the type of slack resources - business or family - and extent of entrepreneurial attitude - favourable or unfavourable - leveraged. Slack resources, both business and family, are not sufficient to turn adversities into opportunities because firms require a favourable entrepreneurial attitude to activate slack. The study contributes to business practice by showing that both family and non-family businesses to thrive in the "new normal" era will have to develop the entrepreneurial resources of the team. Policymakers must be attentive to how firms' accumulated resources are deployed during times of crisis and foster the capture of opportunities out of the storm.