Voices in the storm: how community conversations fuel entrepreneurial innovation in crisis

Abstract

Purpose This study aims to investigate the effect of crises, such as COVID-19, on the innovation activity (IA) of entrepreneurial ventures, focusing on the mediating role of communication with the community of inquiry (COI) as relevant stakeholders for technological opportunity identification (ITOI) and the moderating impact of network diversity (ND) and the effectiveness of functional strategies (EFS). Design/methodology/approach Utilizing data from eighty entrepreneurs, the research examines the effect of meaningful stakeholder interactions for ITOI from the community, ND and the EFS on innovation activities. Findings The results indicate that interaction with communities of inquiry partially mediates the relationship between crisis and IA. ND enhances the relationship between crisis and the interaction with the COI, while effective functional strategies amplify the positive impact of interactions with the COI on innovation. Research limitations/implications The findings encourage further exploration of longitudinal data and different operationalizations of innovation to capture the complexities of entrepreneurial responses to crises. Practical implications Entrepreneurs are advised to engage in targeted interactions with diverse community networks to gather valuable insights, which in turn can enhance their innovation activities and strategic responses during crises. Social implications The study emphasizes the significance of entrepreneurial innovation in driving economic growth, particularly in developing countries like India, where such ventures are vital for recovery and development in the face of adversity. Originality/value This paper contributes to the existing literature by highlighting the importance of effective communication with COI and diverse social networks in fostering innovation during crises, providing a systematic approach for entrepreneurs to navigate uncertainty.