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Exploring the internal drivers of SMEs’ resilience: The case of Ho Chi Minh City SMEs in the context of Covid-19

Author

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  • Tran Minh Ngoc

    (Ho Chi Minh City Open University, Ho Chi Minh City, Vietnam)

  • Huynh Dang Bich Vy

    (Ho Chi Minh City Open University, Ho Chi Minh City, Vietnam)

Abstract

Small and Medium Enterprises (SMEs) share a majority and play an important role in the socio-economic development of national as well as regional economies in the world and Vietnam is not an exception. However, they are more vulnerable to adverse changes due to limited resources. The Covid-19 pandemic which started in the year 2020 has seriously challenged the SMEs operation. Their resilience becomes the first priority under this specific circumstance. This research was conducted to explore the factors affecting the resilience of SMEs in Ho Chi Minh City. By employing PLS-SEM on the data of 300 surveyed businesses, the effects of three key internal factors: leadership, human capital and social capital on SMEs resilience have been investigated. The findings reveal the significant impacts of social capital, leadership, and human capital on the SMEs resilience, especially in the context of Covid-19. The study results highlight that social capital mobilization should be firstly prioritized for SMEs to promote their resilience.

Suggested Citation

  • Tran Minh Ngoc & Huynh Dang Bich Vy, 2023. "Exploring the internal drivers of SMEs’ resilience: The case of Ho Chi Minh City SMEs in the context of Covid-19," HO CHI MINH CITY OPEN UNIVERSITY JOURNAL OF SCIENCE - ECONOMICS AND BUSINESS ADMINISTRATION, HO CHI MINH CITY OPEN UNIVERSITY JOURNAL OF SCIENCE, HO CHI MINH CITY OPEN UNIVERSITY, vol. 13(1), pages 103-120.
    • Handle: RePEc:bjw:econen:v:13:y:2023:i:1:p:103-120
    DOI: 10.46223/HCMCOUJS.econ.en.13.1.2324.2023
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    References listed on IDEAS

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    More about this item

    Keywords

    human capital; leadership; PLS-SEM; resilience; SMEs; social capital;
    All these keywords.

    JEL classification:

    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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