Abstract/Summary

Research on firm survival has primarily focused on input and outcomes. We shift the conversation by performing a systematic analysis of moderating role of firm size in the relationship between firm survival and strategic adaptation. After establishing a theoretical framework, we empirically assess the impact of strategic adaptation through digital transformation and public financial aid on the likelihood of firm survival. We find that smart working helped small firms, while home delivery and e-commerce had no effect on their survival. In contrast, liquidity support from the government and deferral of credit benefited micro firms. Our study emphasizes the importance of analyzing survival probabilities by differentiating firms by size, with the ultimate goal of exploring how selection or strategic adaptation processes may variably impact them.