COVID‐19 crisis andSMEsresponses: The role of digital transformation

Abstract

In addition to causing dramatic damage to people's health, the coronavirus has affected also the financial health of companies worldwide. Among them, SMEs (small and medium‐sized enterprises) tend to be more vulnerable. Characteristics such as scarcity of financial resources and lack of specialized knowledge make their situation even harder. This pandemic has resulted in increased digital transformation, changes in customer behavior and the managerial and technological knowledge gap to address them. Therefore, this article discusses the general weaknesses, strengths, challenges and opportunities for SMEs to face this pandemic, and how the field of knowledge management (KM) can help. Based on the concepts of organizational resilience, we drafted a conceptual model to illustrate how their first responses were and how they could become more adapted. First, we conducted a literature search to investigate how SMEs responded to this scenario. We found responses to the financial impacts in the form of mass layoffs, temporary and permanent closures, bootstrapping of digitalization and strategic alliances. In the discussions section, we raise some key questions to demonstrate how knowledge can improve the role of digital transformation. We approach how a KM strategy could start from organizational resilience concepts to assist SMEs to seize digital transformation opportunities. As practical implications, our research raises awareness of digital transformation's role as a set of tools to adapt during and after the pandemic, along with resilience engineering and knowledge management principles. Future researchers can use this report as a conceptual guide to start their own response and adaptation plans.

The role of entrepreneurial orientation in developing SMEs resilience capabilities throughout COVID-19

“…Nevertheless, the early literature on SME resilience primarily focused on the challenges that SMEs faced during the pandemic (See, for example, Kuckertz et al, 2020;Liu, et al, 2020;Pedauga, et al, 2021;Stephens, et al, 2021). Other research attempted to explain key characteristics, structures, resources, and processes that SMEs have developed (or need to develop) to realise resilience (See, for example, Grözinger et al, 2021;Haneberg, 2021;Klein & Todesco, 2021;Prah & Sibiri, 2020;Thukral, 2021). Against this backdrop, our paper complements current research endeavours by providing a capability-based approach to SMEs' resilience.…”

“…by a new stream of research that focused on bouncing back/recovery strategies (See, for example, Grözinger, et al, 2021;Haneberg, 2021;Klein & Todesco, 2021;Prah & Sibiri, 2020;Thukral, 2021). However, with the plausibility of such efforts, a key gap remains: how SMEs managed to utilise firm characteristics, structures, resources, opportunities, and processes to become resilient.…”

“…Previous contributions to SMEs resilience have emerged in two research areas; the first research area concentrates on the challenges facing SMEs during the pandemic (See, for example,Kuckertz et al, 2020;Liu, et al, 2020;Pedauga, et al, , 2021;Stephens, Cunningham, & Kabir, 2021). The second research area concentrates on the key characteristics, structures, resources, and processes that SMEs have developed to achieve SME resilience (See, for example,Grözinger, et al, 2021;Haneberg, 2021;Klein & Todesco, 2021;Prah & Sibiri, 2020;Thukral, 2021).…”

Peruvian Small and Medium-Sized Enterprises in Times of Crisis—Or What Is Happening over Time?

“…In a study of small businesses in Ghana, Dayour et al [15] suggest that information from various sources such as local and international television, state agencies and social networks, is a successful strategy to be aware of and cope with crises. Klein and Todesco [43] discuss the attributes that make small businesses more vulnerable in a pandemic crisis. Their gaps in specialized knowledge, lack of human resources, and limited managerial capacity make it difficult for SMEs to respond to challenges, adopt digital technologies, and rethink their operations and business models.…”

DIFFERENCES IN BUSINESS RISK EFFECTS ON THE FUTURE OF SMEs DUE TO THE COVID-19 PANDEMIC

“…The most negatively affected business fields are services (Belas et al, 2020;Godany & Mura, 2021), tourism (Machova et al, 2021), and the gastronomy industry. On the other hand, several authors also point to the positive changes in the business environment (accelerating innovations, digitalization in particular; Klein & Todesco, 2021) and the growth of selected business sectors (e.g. IT industry; Rai et al, 2021;Rozsa & Machova, 2021).…”