Abstract
We investigate the connection between entrepreneurial motivation and innovation adoption during COVID-19 by informal firms in India. Using the theory of Conservation of Resources, this study examines the extent to which necessity entrepreneurs are more likely to adopt innovation than opportunity entrepreneurs and how the presence of side hustles moderates this relationship. Our findings suggest that necessity entrepreneurs are more likely than opportunity entrepreneurs to adopt innovation during COVID-19 uncertainty in order to preserve and acquire resources. In addition, the study demonstrates that the positive relationship between necessity entrepreneurship and innovation adoption is weakened in the presence of side jobs due to availability of buffer resources. These findings have implications for policymakers and practitioners who seek to foster innovation and entrepreneurship in uncertain environments, highlighting the importance of supporting necessity entrepreneurs and comprehending the potential costs and benefits of engaging in a side hustle. We use the World Bank Enterprise Surveys of Indian Informal firms 2021-2022 for analysis.