COVID-19 wreaked havoc on public health and the global economy. Small and medium-sized enterprises (SMEs) were hit especially hard. In this research note, we test the ability of dynamic capabilities (DCs) to predict SME performance during the pandemic. Based on our analysis of data from a survey conducted in the United States, we find that DCs meaningfully predicted both operational levels and revenue. Furthermore, while the empirical literature suggests that SME size is positively related to DC efficacy, we found that this effect was reversed during COVID-19, as the positive link between DCs and performance was stronger for smaller SMEs.

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Previous studies of employee ownership have conceptualized its chief attitudinal outcome principally as an emotional bond to the organization (i.e. affective commitment), despite a growing consensus that commitment is multifaceted. Using a sample of airline pilots, we assessed relationships between ESOP (employee stock ownership plan) attributes and three‐component commitment (Meyer & Allen, 1991). Regarding continuance commitment, high financial value was associated with pilots feeling freer to leave rather than being bound to the organization, as side‐bet theory suggests. As predicted, perceived workplace empowerment was strongly related to normative commitment — consistent with Meyer and Allen's theoretical formulation emphasizing unfulfilled reciprocity norms but inconsistent with the non‐contingent, loyalty norm explanation.

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Because prior knowledge may not generalize to the COVID-19 setting, scholars are racing to test the efficacy of existing theoretical frameworks during COVID-19. Most business studies are conceptual or surveys of damage. The main purpose of the paper is to extend the forthcoming stream that tests firm performance by examining it during COVID-19. We examine the sales growth of 1298 US manufacturers during COVID-19 compared to their pre-COVID-19 baselines. Riskier firms with higher R&D intensities performed better during COVID-19, especially when cash-to-inventory levels were low. This study is among the first to empirically identify actionable predictors of firm performance during COVID-19 via a quantitative analysis of strategies and performance outcomes. Understanding what type of firms perform at higher levels during COVID-19 will help decision makers make more informed decisions moving forward. Employing ordinary least squares (OLS) regression to test our hypotheses, our findings suggest that R&D intensive firms should pivot tactically regarding current asset management, if needed, but not strategically, while prioritizing inventory versus cash retention. The positive effect of inventory versus cash extends theory by suggesting a new boundary condition related to pandemics that reverses the positive link between cash and performance found during crises with more conventional levels of turbulence. Our most important contribution, however, is practical, via the testing of predictors that can help firms during COVID-19. For example, we found that firms with higher levels of operating risk experienced 60 percent more sales growth than risk-averse firms. This knowledge that risk-taking predicted performance during COVID-19 (especially when coupled with a focus on R&D intensity and inventory level) may encourage those that can adopt less risk-averse strategies, while others focus on tactical adjustments or mitigative measures during COVID-19 and future black swan events.

Previous research has suggested a relationship between the establishment of employee stock ownership plans (ESOPs) and post-adoption improvements in financial performance --presumably as a result of the alignment of employee and stockholder interests. I examine the role of tax incentives on the financial performance of ESOP firms. The results indicate that ESOPs formed prior to the availability of tax incentives provided by the Tax Reform Act of 1986 have experienced significantly greater improvement in financial performance than ESOPs established after passage of the Act. The results are consistent with my hypothesis and suggest that even though ESOPs can be utilized to reduce a firm's federal income tax liability, ESOPs may be more useful to management to reduce agency costs throughout the firm.

This study is the first empirical test of the strategic importance of member autonomy and open access in a managed care environment. The model utilized in this study assesses the relative importance of autonomy in selecting specialists (open access), service convenience, value/pricing, and HMO resources on member satisfaction with care and intentions to remain with the HMO.

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