Research on the Role of Internet Use and Embedding on Entrepreneurial Resilience in Major Crisis

Abstract

This study examines how Internet use and embedding influence entrepreneurial resilience during major crises. Drawing on a unique dataset of Chinese entrepreneurs during COVID-19, we distinguish between work-related and leisure-oriented Internet use and assess the effects of Internet embedding depth. The results show that Working Internet use strengthens entrepreneurial resilience, whereas Leisure Internet use weakens it. Internet embedding depth enhances resilience, but excessive embedding has a detrimental effect. Further analyses reveal heterogeneous effects across entrepreneur types: the effects of both Working and Leisure Internet use are stronger for female and necessity-driven entrepreneurs; the positive effect of Internet embedding is stronger for male and opportunity-driven entrepreneurs, while the negative effect of excessive embedding is more pronounced for male and necessity-driven entrepreneurs. The main contribution of this study is to move beyond the broad claim that digitalization supports resilience and to show that the resilience value of Internet use depends on entrepreneurs' online purposes and embedding conditions. The study also identifies gender- and motivation-based differences in these associations and offers practical implications for managing digital behavior during crises.