Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/288121 
Year of Publication: 
2023
Citation: 
[Journal:] The World Economy [ISSN:] 1467-9701 [Volume:] 46 [Issue:] 8 [Publisher:] Wiley [Place:] Hoboken, NJ [Year:] 2023 [Pages:] 2408-2431
Publisher: 
Wiley, Hoboken, NJ
Abstract: 
Given the importance of firm strategic management in the time of crisis, this study investigates Micro, Small and Medium Enterprises (MSMEs) approaches to persistence during the international sanctions against Iran. Using data from a questionnaire of 486 firms between December 2019 and September 2020, we found that reducing research and development (R&D) expenditures, marketing costs and fixed/overhead costs and investing in information technology (IT) are positively related to firm persistence. Conversely, managerial decisions to reduce production and cut or freeze staff pay have negative and significant impacts on a firm's ability to persist during sanctions. Moreover, micro‐firms are more resilient than their small and medium counterparts. The findings also confirm that age has a significant and positive impact on firm persistence. Finally, the results show that having a business plan, access to finance and technology, owner education, export orientation, business networking and consulting services are the key drivers of withstanding pressure from sanctions.
Subjects: 
crisis
firm
Iran
management
ordered probit
persistence
recession
sanction
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Article
Document Version: 
Published Version

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