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SMEs and digital transformation during a crisis: The emergence of resilience as a second-order dynamic capability in an entrepreneurial ecosystem

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  • Khurana, Indu
  • Dutta, Dev K.
  • Singh Ghura, Amarpreet

Abstract

In this research, we examine how small and medium enterprises (SMEs) build their resilience capability during a crisis, through the adoption of digital technologies. Utilizing a qualitative approach grounded in case studies of eight entrepreneurs from India who had to radically change their business models and operations during the COVID-19 pandemic, we develop a multilevel model of resilience capability: at the micro (entrepreneur), meso (organizational), and macro (entrepreneurial ecosystem) levels. In developing resilience, the SMEs alternate their focus: from concentrating on the core to moving toward the periphery of their organizational boundaries, highlighting a shifting play of the three first-order dynamic capabilities of sensing, seizing, and transforming. By affording SMEs an opportunity to transform themselves by embracing digital technologies, the crisis leads to the emergence of resilience capability as a second-order dynamic capability.

Suggested Citation

  • Khurana, Indu & Dutta, Dev K. & Singh Ghura, Amarpreet, 2022. "SMEs and digital transformation during a crisis: The emergence of resilience as a second-order dynamic capability in an entrepreneurial ecosystem," Journal of Business Research, Elsevier, vol. 150(C), pages 623-641.
    • Handle: RePEc:eee:jbrese:v:150:y:2022:i:c:p:623-641
    DOI: 10.1016/j.jbusres.2022.06.048
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