COVID-19 has affected most business activities, including technology-based business. The higher the business vulnerability rating, the greater the impacts. After identifying three dimensions of vulnerability (exposure, business sensitivity, and response capacity), this research determined the potential components and indicators of the vulnerability of technology-based businesses.
Using the indicator approach, a comprehensive vulnerability model was developed for assessing the vulnerability of the technology-based business against COVID-19.
In this study, COVID-19, as a biological threat and an exogenous shock, was considered the exposure dimension. Business characteristics, job characteristics, business owner-manager demographics, product, and supplier characteristics were identified as the sensitivity dimension, while resources, human capital, technological capitals, social capitals, institutional capitals, infrastructures, management capacity, and supply chain capabilities were defined as the adaptive business capability or response capacity. To determine vulnerability and response capacity against exogenous shocks and a pandemic crisis, our framework can act as a useful checklist for managers and owners of technology-based businesses.
Research on the COVID-19, especially in the technology-based business, is still at the emergent stage. This study is a pioneering effort to review the literature on business vulnerability and provide a framework to reduce business vulnerability using the indicator-based approach.