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An Exploration Of Digital Resilience For Small And Medium Sized Enterprises During Geopolitical Shock

Author

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  • Hirotoshi SATO
  • Kurtz LAW
  • Cristian VLAD

Abstract

This study investigates how manufacturing SMEs achieve digital resilience amid geopolitical uncertainty. Drawing on extant evidence from Central and Eastern European manufacturing firms following the 2022 Russia–Ukraine conflict, we examine the puzzling gap between increased digital investments and actual resilience outcomes. While roughly three-quarters of CEE manufacturing SMEs increased digital technology investments post-crisis (EIB, 2023), only about one-third report measurable improvements in operational resilience. Three theoretical perspectives are examined: paradox theory, threat–rigidity theory, and dynamic capabilities, to offer valuable insights into SME digital resilience and construct a novel model. Through a systematic literature synthesis, we develop the PLUS–D framework, which integrates paradoxical leadership, learning capabilities, unabsorbed slack, shock exposure, and digitalization intensity as configurational elements. The synthesis identifies five distinct pathways to digital resilience, demonstrating both equifinality (multiple paths to success) and causal asymmetry (qualitatively different failure patterns). The analysis challenges linear assumptions about technology adoption, suggesting that organizational configurations, rather than investment levels alone, determine resilience outcomes under geopolitical shocks.

Suggested Citation

  • Hirotoshi SATO & Kurtz LAW & Cristian VLAD, 2025. "An Exploration Of Digital Resilience For Small And Medium Sized Enterprises During Geopolitical Shock," Proceedings of the INTERNATIONAL MANAGEMENT CONFERENCE, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 19(1), pages 303-312, October.
    • Handle: RePEc:rom:mancon:v:19:y:2025:i:1:p:303-312
    DOI: 10.24818/IMC/2025/03.06
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    References listed on IDEAS

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    1. Jonas Soluk & Nadine Kammerlander, 2021. "Digital transformation in family-owned Mittelstand firms: A dynamic capabilities perspective," European Journal of Information Systems, Taylor & Francis Journals, vol. 30(6), pages 676-711, November.
    2. David J. Teece, 2007. "Explicating dynamic capabilities: the nature and microfoundations of (sustainable) enterprise performance," Strategic Management Journal, Wiley Blackwell, vol. 28(13), pages 1319-1350, December.
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