Innovation practices for survival of small and medium enterprises (SMEs) in the COVID-19 times: the role of external support

Abstract

Global epidemic crises, such as the coronavirus (COVID-19), usually expose small and medium enterprises (SMEs) to various kinds of challenges and may put their lives at risk. This study aims to develop a theoretical model to provide insights about the association between innovation practices and the SMEs’ performance and survival while underlining the auxiliary role of external support in such a relationship. Online questionnaire has been used to collect the data from 259 randomly selected SME managers in Saudi Arabia, and the data was analyzed using the SmartPLS3 software. The structural equation modeling results showed that the innovation practices adopted by SMEs to face the repercussions of COVID-19 had a positive impact on the performance and likelihood of business survival. PLS-SEM bootstrap results indicated that external support aids strengthen the positive impact of SMEs’ innovation practices on business survival rather than its performance. The study has several significant practical implications for SME managers, governments, and policy makers that have been stated.

The Role of Technology Usage in Mediating Intellectual Capital on SMEs Performance During the Covid-19 Era

“…It finds that the intellectual capital will improve the quality of teaching and help the business school achieve a higher ranking and repute (Bakhru, 2019). The current studies have highlighted the inconsistency of previous research in which an indirect effects model, particularly the use of technology as a significant mediating variable in enhancing the sustainability of SMEs, was overlooked (Jämsä et al, 2011;Kim & Orazem, 2017;Zhong et al, 2020;Adam, 2021). There was also an inconsistency between intellectual capital and SMEs' performance (Absah et al, 2018;Maharani & Fuad, 2020;Ahmed et al, 2020;Mubarik et al, 2020).…”

“…This study aims to provide valuable recommendations to business people in designing and managing intellectual capital components and technology usage in the business sector because the use of technology is a newly discovered issue (Terziu et al, 2020;Zhong et al, 2020;Adam, 2021). The use of technology may enhance the competence of social capital in company productivity, such as in the fields of marketing, production, and service (Kim & Orazem, 2017;Terziu et al, 2020).…”

Critical thinking and creativity of MSMEs in improving business performance during the covid-19 pandemic

“…In order to improve our performance, critical thinking is the process of analyzing and reviewing the outcomes of our cognitive processes and thoughts on how we may make great choices or solve issues in an acceptable manner, among other things (Amankwah-Amoah et al, 2021). This task involves a variety of activities including the conceptualization and application of knowledge; the analysis, synthesis, and evaluation of information acquired via observation and experience; reflection, reasoning, and communication (Adam & Alarifi, 2021;Prasanna et al, 2019). According to this idea, business managers need critical thinking abilities in order to grow their organizations, particularly in the face of challenges such as the present COVID-19 epidemic (Amankwah-Amoah et al, 2021;Rakshit et al, 2021).…”

“…Entrepreneurs are required to think critically and creatively in this environment in order to develop new businesses that can be run from home and are in great demand by a big number of consumers (Cerchione et al, 2016;Kumar & Kalse, 2021;Rakshit et al, 2021). The ability of the marketing team to think critically is essential to the ability of the marketing team to develop and execute a successful marketing campaign (Adam & Alarifi, 2021). It is essential for the marketing department of an organization to be able to collect and analyze demographic information about the company's target audience in order to identify the most effective methods of reaching customers when promoting the organization's products (Rakshit et al, 2021).…”

“…Furthermore, according to prior research, when it comes to identifying new business opportunities, creativity has a positive impact on corporate strategies. In order for MSMEs success to be achieved, increased product diversification in response to consumer demand is essential; additionally, developing an appropriate marketing strategy for offering products or services is essential so that they can sell their products during the COVID-19 pandemic, when customers are accustomed to making online purchases at this time, is essential (Adam & Alarifi, 2021;Amankwah-Amoah et al, 2021;Kumar & Kalse, 2021). As a result, creative thinking is needed in order to guarantee the long-term sustainability of MSMEs business operations throughout the COVID-19 pandemic (Amankwah-Amoah et al, 2021).…”