The impact of the COVID-19 fear on international opportunity recognition: the role of causation, effectuation and optimism
by Haroon Muzaffar
European J. of International Management (EJIM), Vol. 23, No. 4, 2024

Abstract: The unprecedented fear triggered by the unexpected exogenous shock of COVID-19 could profoundly affect how we see the world, the ways in which we process information, and how we take our decisions. Against the backdrop of worldwide fear triggered by COVID-19, present study examines the impact of COVID-19 fear on the international opportunity recognition (IOR) and causal and effectual decision-making logics of entrepreneurs. Additionally, this study investigates the impact of COVID-19 fear on IOR through the mediating paths of causation and effectuation. On the other hand, to cope with the COVID-19 fear, cognitive resources, such as optimism, are critical. Therefore, this study examines how optimism moderates the relationship between COVID-19 fear and IOR. The results showed that COVID-19 fear negatively impacts IOR, whereas it has positive impact on the causal and effectual decision-making logics. Further, results indicate that the relation between COVID-19 fear and IOR is mediated by causal and effectual decision-making logics. It has also been found that the relationship of COVID-19 fear to IOR is significantly moderated by optimism.

Online publication date: Fri, 05-Jul-2024

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