Pivot to Persevere: Temporary Pivots as a Response to Exogenous Shocks

Abstract

AbstractDespite much progress in the research on pivots as a response to crisis, the nature of temporary pivots remains unclear. This article investigates how a venture responded to the challenges of the COVID-19 pandemic by performing a temporary pivot. Drawing on an inductive, longitudinal case study of the fast-growing young venture “Gazelle,” we developed a process model of temporary pivots that encompasses three phases: what evokes a temporary pivot; how it is enacted; and what effects it has on the venture. Our findings suggest that temporary pivots require effectual decision-making and the reversibility of changes made. Our research contributes to the growing literature on pivoting by conceptualizing the temporary pivot as a short-term entrepreneurial response to exogenous shocks and part of a long-term strategy of perseverance.