THEORETICAL OR CONCEPTUAL

FRAMEWORK

The study is anchored on inovative companies should be better prepared than other
types of businesses to deal with the COVID-19 challenge due to their unique traits.
Being resilient requires being innovative, as innovative organizations are more likely to
anticipate and respond to a wide range of crises (Hamel and Valikangas, 2003;
Linnenluecke, 2017). However, businesses do not always identify the true harm that a
prospective crisis event poses (Muoz et al., 2019), and the majority of startups were
unprepared for the events of the last four months. We know from study on the effects of
Hurricane Katrina and its aftermath that failing to plan can have disastrous
repercussions, especially for small businesses that are susceptible to cash flow
disruptions, lack of access to capital for recovery, and face problems accessing federal
assistance and also serious infrastructure problems (Runyan, 2006).