Technology adaptation: micro new ventures in a COVID-19 lockdown

PurposeThere is a paucity of evidence on how small new ventures cope with shifts from physical space to cyberspace imposed by external crises, such as pandemics. Further, even though the concept of space is highly relevant to understanding entrepreneurship, the concept has been underutilised in entrepreneurship research. In particular, the potential of understanding entrepreneurship in terms of the interplay between physical space and cyberspace is yet to be explored. The authors address these research gaps by pursuing the following research question: How did micro new ventures experience the shift from physical space to cyberspace (technology adaptation) imposed by the coronavirus disease 2019 (COVID-19) crisis?Design/methodology/approachData were collected via semi-structured interviews with founders of start-ups associated with two incubators, in Spain and Monaco. Thematic analysis of interview transcripts was conducted, approaching the data with the focus on firm positioning in “real” space and in cyberspace and on possible transformations of business models.FindingsThe pandemic opened new opportunities for small new ventures, as many start-ups were successful in shifting into cyberspace by undergoing a radical digital transformation and ended up with more scalable business models and in many cases transformed themselves into micro-multinationals.Research limitations/implicationsOverall, firms tended to shift from physical space to cyberspace, following the firms' customers to cyberspace, finding new and more international, customers in cyberspace or guiding the firms' existing customer base into cyberspace. Firms that maintained the pre-pandemic position were either already fully digital or had sufficient resources to hold position in the anticipation of the post-pandemic future.Originality/valueThe authors introduce the concept of cyberspace in the context of entrepreneurship studies and explore the trajectories of firms in a crisis.