Coronavirus and international business: An entrepreneurial ecosystem perspective

• Author: Vanessa Ratten
• Date: 01 September 2020
• DOI: http://doi.org/10.1002/tie.22161
• Published date: 01 September 2020

COMMENTARY

Coronavirus and international business: An entrepreneurial

ecosystem perspective

Vanessa Ratten

La Trobe Business School, La Trobe University,

Melbourne, Victoria, Australia

Correspondence

Vanessa Ratten La Trobe Business School, La

Trobe University, Plenty Road, Bundoora,

Melbourne, VIC 3086, Australia.

Email: v.ratten@latrobe.edu.au

Abstract

Covid-19 (Coronavirus) is a health pandemic that has significantly affected the global

economy and fundamentally changed society. The impacts of coronavirus are most

apparent at the international business level due to the restrictions on travel and

mobility of labor. This has necessitated an entrepreneurial outlook for businesses in

order to survive in the current market environment. The aim of this article is to dis-

cuss the implications of the coronavirus for international business by taking an entre-

preneurial ecosystem point of view. This enables a reflection on how the pandemic

has impacted various entities of the ecosystem in terms of stakeholder engagement.

Suggestions for acting in a more dynamic and innovative manner are provided that

highlight the importance of utilizing entrepreneurial ecosystems in times of crises.

KEYWORDS

coronavirus, crisis, ecosystem, entrepreneurship, international business, pandemic

1|INTRODUCTION

The Covid-19 (coronavirus) pandemic has presented unique problems

and opportunities for international business and entrepreneurship. As

Parnell et al. (2020, p. 1) states “the coronavirus disease 2019

(COVID-19) lays bare the society we have created, centuries of global

processes and the cultivated, networked society and its

interdependent infrastructural architecture”. No region of the world

has not been impacted by the virus and there does not seem to be

any distinction between developed and developing countries in terms

of the effects of the virus (World Health Organization, 2020). While

there has been other health pandemics that have affected the global

economy, the uncertainty caused by covid-19 has resulted in new

ways of looking at entrepreneurship (Liguori and Winkler, 2020).

Other health pandemics such as the Middle East Respiratory Syn-

drome and Ebola have affected specific geographic regions while

coronavirus has had global consequences. This means a new way of

understanding how entrepreneurship results in times of heightened

uncertainty is needed. In addition, the quick progression of coronavi-

rus has resulted in significant cultural, social, and business change.

From a cultural perspective, it has altered societal practices most

notably in the form of social distancing. Due to the highly contagious

nature of the disease, individuals were told to practice social

distancing, which meant maintaining a physical space when in the

presence of others. This has led to a reliance more on online rather

than physical communication. While there are many disadvantages

associated with physical distancing such as the inability to read non-

verbal cues, it has created advantages in the new form of communica-

tion made possible from digital technologies. This has emphasized

more the use of digital devices and communication methods to

exchange ideas. It can also be easier to communicate online rather

than in a physical form due to geographic reasons. This has led to

increased usages of streaming facilities that has further intensified

societies need for digitalization (Qian, 2018). From a social perspec-

tive, there has been a dramatic reduction in group activities. This has

been an unprecedented event due to the way it has changed commu-

nities. There is now more emphasis on individual rather than group

activity. This is not to say group activities do not exist as they do but

in a new format.

Since coronavirus first emerged in January 2020, it has quickly

spread to become a health issue of global importance. Unlike Severe

Acute Respiratory Syndrome (SARS), which was largely concentrated

in Asia, coronavirus has had a huge effect on Europe and North

America. This resulted in businesses shutting down and individuals

confined to their homes. The “new normal”now refers to a lifestyle

that encompasses social distancing and more emphasis on personal

DOI: 10.1002/tie.22161

Thunderbird Int. Bus. Rev.. 2020;62:629–634. wileyonlinelibrary.com/journal/tie © 2020 Wiley Periodicals LLC. 629