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Nguyen, Bach; Tran, Hai-Anh; Stephan, Ute; Van, Ha Nguyen; Anh, Pham Thi Hoang
Journal of business venturing, July 2024, 2024-07-00, Volume: 39, Issue: 4Journal Article
Why do some entrepreneurs pivot their business models in a crisis, while others are more passive? Integrating Conservation of Resources theory with work on crisis rumination, we developed a micro-level model to explain why entrepreneurs who are under strain due to a crisis, as indicated by experiencing crisis rumination, adopt an active approach – i.e., using active coping and engaging in pivoting. Moreover, prevention-focused entrepreneurs who are habitually more sensitive to losses are especially stimulated by crisis rumination to pivot to prevent (further) resource losses. We tested our model in an experiment and an eight-month longitudinal study with entrepreneurs during an inflation crisis. •Crisis rumination–negative repetitive thoughts and anxiety about a crisis–enhances pivoting.•The positive effect of crisis rumination on pivoting is conducted through active coping.•Prevention focus strengthens the association between rumination and pivoting.
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