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Proactive and Reactive Attitude to Crisis: Evidence from European Firms

Author

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  • Jan Brzozowski

    (Marche Polytechnic University, Italy)

  • Marco Cucculelli

    (Marche Polytechnic University, Italy)

Abstract

Objective: The aim of this study is to investigate the behaviour of European firms in the time of the economic crisis in 2008-2009. We analyse the determinants of proactive strategies in the context of innovation and the range of products offered by every firm on the market. Research Design & Methods: Based on a large and representative sample of 14750 (EFIGE dataset) firms from Austria, Germany, France, Hungary, Italy, Spain and the UK, we estimate the logit model for two measures of proactive strategy: the investment behaviour and the introduction of new products on the market. Findings: We find evidence that the experience of the former crisis by the company is associated with the adoption of proactive behaviour in the case of investments in innovation, and reactive behaviour in the case of the product offer range. Implications & Recommendations: As the public support for innovative investments proved to be rather ineffective, the most promising direction for public policies in the times of crisis are those that facilitate the access to external financing. Contribution & Value Added: Our paper contributes to the development of knowledge on the dynamics of company behaviour in the wake of the economic crisis in 2008, and to the better understanding of the determinants of proactive behaviour of enterprises within the context of rising uncertainty.

Suggested Citation

  • Jan Brzozowski & Marco Cucculelli, 2016. "Proactive and Reactive Attitude to Crisis: Evidence from European Firms," Entrepreneurial Business and Economics Review, Centre for Strategic and International Entrepreneurship at the Cracow University of Economics., vol. 4(1), pages 181-191.
    • Handle: RePEc:krk:eberjl:v:4:y:2016:i:1:p:181-191
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    References listed on IDEAS

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    Cited by:

    1. Eric Hansen & Erlend Nybakk, 2018. "Response to the global financial crisis: a follow-up study," Journal of Innovation and Entrepreneurship, Springer, vol. 7(1), pages 1-12, December.
    2. Aleksandra Wąsowska, 2017. "The Internationalisation of Family Firms: the Role of the Ownership Structure and the Composition of Top Management Team," Entrepreneurial Business and Economics Review, Centre for Strategic and International Entrepreneurship at the Cracow University of Economics., vol. 5(1), pages 169-185.
    3. Gawlik, Remigiusz, 2019. "Ranking of company performance indicators for managerial decision making purposes with application of the Delphi method," MPRA Paper 96681, University Library of Munich, Germany.
    4. Simona Mateut, 2018. "Subsidies, financial constraints and firm innovative activities in emerging economies," Small Business Economics, Springer, vol. 50(1), pages 131-162, January.
    5. Hammerschmidt, Jonas & Durst, Susanne & Kraus, Sascha & Puumalainen, Kaisu, 2021. "Professional football clubs and empirical evidence from the COVID-19 crisis: Time for sport entrepreneurship?," Technological Forecasting and Social Change, Elsevier, vol. 165(C).
    6. Kangogo, Daniel & Dentoni, Domenico & Bijman, Jos, 2021. "Adoption of climate‐smart agriculture among smallholder farmers: Does farmer entrepreneurship matter?," Land Use Policy, Elsevier, vol. 109(C).
    7. Zheng, Fengjiao & Khan, Naseer Abbas & Hussain, Sabir, 2020. "The COVID 19 pandemic and digital higher education: Exploring the impact of proactive personality on social capital through internet self-efficacy and online interaction quality," Children and Youth Services Review, Elsevier, vol. 119(C).

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    More about this item

    Keywords

    proactive behaviour; crisis reaction; investment; product introduction;
    All these keywords.

    JEL classification:

    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

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