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“I can't get it out of my mind” - Why, how, and when crisis rumination leads entrepreneurs to act and pivot during crises

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  • Nguyen, Bach
  • Tran, Hai-Anh
  • Stephan, Ute
  • Van, Ha Nguyen
  • Anh, Pham Thi Hoang

Abstract

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.

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  • Nguyen, Bach & Tran, Hai-Anh & Stephan, Ute & Van, Ha Nguyen & Anh, Pham Thi Hoang, 2024. "“I can't get it out of my mind” - Why, how, and when crisis rumination leads entrepreneurs to act and pivot during crises," Journal of Business Venturing, Elsevier, vol. 39(4).
    • Handle: RePEc:eee:jbvent:v:39:y:2024:i:4:s088390262400017x
    DOI: 10.1016/j.jbusvent.2024.106395
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    Cited by:

    1. Portocarrero, Florencio & Newbert, Scott & Young, Maia & Zhu, Lily, 2025. "The affective revolution in entrepreneurship: an integrative conceptual review and guidelines for future investigation," LSE Research Online Documents on Economics 126090, London School of Economics and Political Science, LSE Library.

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    More about this item

    Keywords

    Rumination; Crisis; Active coping; Pivot; Regulatory focus;
    All these keywords.

    JEL classification:

    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • D9 - Microeconomics - - Micro-Based Behavioral Economics

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