Navigating Turbulent Environments: Exploring Resilience in SMEs through Complex Adaptive Systems Perspective

Abstract

This study seeks to explore how owner–managers of small and medium-sized enterprises navigate a constantly changing and turbulent environment following a traumatic experience and how they build resilience in their organizations by drawing upon memories through a complex adaptive system lens. Specifically, this study investigates the major factors shaping the management strategies of SMEs operating in the infrastructure construction sector in North Cyprus, where foreign aid/the patron country is the primary source of financing and therefore the major driver of strategies. To gather primary data, semistructured interviews were conducted with owner–managers of grade 1 construction SMEs, who can participate in internationally financed public projects. A qualitative approach using thematic analysis was adopted, and findings indicate that the most influential factor shaping the management strategies of SMEs in North Cyprus is the macro characteristics of the sociopolitical environment. These characteristics evoke memories for owner–managers and lead to a dissipative approach towards managing their SMEs, creating resilience in the face of North Cyprus’ ever-changing political environment.