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The key factors of SMEs' resilience based on organisational behaviour theory

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  • Joseph Awali Sebuwufu
  • Binod Timilsina

Abstract

The global economic crisis and COVID-19 pandemic has increased turbulence and uncertainties in the business environment, as a result small and medium enterprises (SMEs) are facing more challenges. However, there remain questions about how SMEs cope, survive, and develop strategies that orchestrate resilience during these times. Using a sample of 3,355 SMEs management configuration systems from European Union, the study explores how SMEs resiliently prevailed during the 2008 financial crisis and decade onwards. The study, considered return on equity (ROE) ratio as a measure of resilience, explored the association of SMEs' dynamic managerial capabilities, tested the significance of management configurations, and proposed an innovative framework that aims to improve competitiveness. The research demonstrated that top management configurations coupled with human resource management (HRM) could promote resilient performance during crisis and uncertain business environments. In addition, the study offers choices on management configuration to decision makers, highlights the research limitations and future studies.

Suggested Citation

  • Joseph Awali Sebuwufu & Binod Timilsina, 2023. "The key factors of SMEs' resilience based on organisational behaviour theory," International Journal of Innovation and Learning, Inderscience Enterprises Ltd, vol. 34(3), pages 223-247.
    • Handle: RePEc:ids:ijilea:v:34:y:2023:i:3:p:223-247
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