Hampered by creation: the unintended consequences of COVID-19 policies on creative firms

The COVID-19 pandemic abruptly interrupted operations for many industries, but in particular the live entertainment sector that was effectively forced into a global shutdown. In response, governments swooped in to keep these organisations afloat by introducing policies aimed at compensating for lost revenues and supporting other forms of activity such as creation. While these reactive measures undoubtedly provided timely and vital relief for some, this study suggests that they also induced important distortions over time. Based on interviews with circus arts managers, the results show that these policies unintendedly introduced or contributed to four main 'asymmetries' – outlets, customer base, structure, and talent – that now hamper creative organisations as they transition out of the pandemic. This study contributes to the emerging body of work on the unforeseen consequences of COVID-related support measures, challenges the dominant contextual approach to managing ambidexterity, and provides valuable insights for government and policy actors.