Pandemic to Endemic: A Review of Key Enablers of Small Medium Enterprise Resilience

  • Zam Zuriyati Mohamas Universiti Tunku Abdul Rahman
  • Juliana Abu Bakar Department of Economics, Faculty of Business and Finance, Universiti Tunku Abdul RahmanUniversiti Tunku Abdul Rahman
  • Sharmeela-Banu Department of Marketing, Faculty of Business and Finance, Universiti Tunku Abdul Rahman
  • Hatijah Mohd Salleh Department of Business and Public Administration, Faculty of Business and Finance, Universiti Tunku Abdul Rahman
  • Khairunnisa Ishak Department of Business and Public Administration, Faculty of Business and Finance, Universiti Tunku Abdul Rahman
Keywords: Small Medium Enterprise, Resilience, Financial Resources, Government Support, Digital Technology, Business Approach

Abstract

The existence of various COVID-19 variants from Delta to Omicron has led to speculation that the spreading of the virus will continue; hence, the endless battle to fight it persists. The uncertainties in its progress from pandemic to endemic, renders it necessary to understand the applied mitigation and adaptation strategies amongst SMEs to build their future resilience as they are vulnerable and have limited resources. This study aims to develop a conceptual framework of the key enablers of SMEs’ resilience during the pandemic. Specifically, these enablers will be examined from the point of view of strategies and capabilities. A reviewed research articles from the Scopus database has been conducted focusing on selected keywords in 2020 and 2021. The findings reveal that financial resources, government support, embracing digital technologies and changing business approach are the key enablers for SMEs’ resilience. This study further provides a unique snapshot of business decisions and expectations particularly during this pandemic. It is suggested for the policy makers to consider designing recovery aids as they contemplate the scale of the required interventions. Significantly, this study also explores and provides deep understanding on the survival strategies; adaptive strategies and dynamic capabilities of SMEs during the pandemic and most importantly it directs and points out their path, present and in the future.

Downloads

Download data is not yet available.

References

Abu Hatab, A., Lagerkvist, C. J., & Esmat, A. (2021). Risk perception and determinants in small‐and medium‐sized agri‐food enterprises amidst the COVID‐19 pandemic: Evidence from Egypt. Agribusiness, 37(1), 187-212.

Alberti, F. G., Ferrario, S., & Pizzurno, E. (2018). Resilience: resources and strategies of SMEs in a new theoretical framework. International journal of learning and intellectual capital, 15(2), 165-188.

Amat, M., & Ishak, S. (2019). Faktor PSiKKIT: Pendorong inovasi pembungkusan dalam kalangan Industri Kecil dan Sederhana berasaskan perusahaan makanan (PSiKKIT factors: Drivers of packaging innovation among food companies within the Small and Medium Industries). Geografia, 15(3).

Anggadwita, G., Martini, E., Hendayani, R., & Kamil, M. R. (2021, August). The Role of Technology and Innovation Capabilities in Achieving Business Resilience of MSMEs During Covid-19: Empirical Study. In 2021 9th International Conference on Information and Communication Technology (ICoICT) (pp. 1-6). IEEE.

Annarelli, A., & Nonino, F. (2016). Strategic and operational management of organizational resilience: Current state of research and future directions. Omega, 62, 1-18. http://dx.doi.org/10.1016/j.omega2015.08.004

Azmi, W., Aida, I., & Diana, A. (2020). The role of strategic management in growth of small and medium enterprises (SMEs) in Malaysia. e-Bangi Journal of Social Sciences and Humanities, 17(1), 108-124.

Baral, M. M., Singh, R. K., & Kazançoğlu, Y. (2021). Analysis of factors impacting survivability of sustainable supply chain during COVID-19 pandemic: an empirical study in the context of SMEs. The International Journal of Logistics Management.

Bourletidis, K., & Triantafyllopoulos, Y. (2014). SMEs survival in time of crisis: strategies, tactics and commercial success stories. Procedia-Social and Behavioral Sciences, 148, 639-644. https://doi.org/10.1016/j.sbspro.2014.07.092

Burhan, M., Salam, M. T., Abou Hamdan, O., & Tariq, H. (2021). Crisis management in the hospitality sector SMEs in Pakistan during COVID-19. International Journal of Hospitality Management, 98, 103037.

Cassia, L., & Minola, T. (2012). Hyper‐growth of SMEs: Toward a reconciliation of entrepreneurial orientation and strategic resources. International Journal of Entrepreneurial Behavior & Research, 18(2), 179–197.

Cepel, M., Gavurova, B., Dvorský, J., & Belas, J. (2020). The impact of the COVID-19 crisis on the perception of business risk in the SME segment. Journal of International Studies.

Chen, R., Liu, Y., & Zhou, F. (2021). Turning Danger into Safety: The Origin, Research Context and Theoretical Framework of Organizational Resilience. IEEE Access, 9, 48899-48913.

Fabeil, N. F., Pazim, K. H., & Langgat, J. (2020). The impact of Covid-19 pandemic crisis on micro-enterprises: Entrepreneurs’ perspective on business continuity and recovery strategy. Journal of Economics and Business, 3(2).

Fath, B., Fiedler, A., Sinkovics, N., Sinkovics, R. R., & Sullivan-Taylor, B. (2021). International relationships and resilience of New Zealand SME exporters during COVID-19. critical perspectives on international business.

Gregurec, I., Tomičić Furjan, M., & Tomičić-Pupek, K. (2021). The impact of COVID-19 on sustainable business models in SMEs. Sustainability, 13(3), 1098.

Hamdan, N. H. B., Kassim, S. B. H., & Lai, P. C. (2021). The Covid-19 Pandemic Crisis on Micro-entrepreneurs in Malaysia: Impact and Mitigation Approaches. Journal of Global Business and Social Entrepreneurship (GBSE), 7(20), 52-64.

Hidayat, M., Latief, F., Nianti, D. A., Bahasoan, S., & Widiawati, A. (2020). Factors influencing resilience of micro small and medium entrepreneur (MSME) during COVID-19 outbreak in South Sulawesi Province Indonesia.

Hrivnák, M., Moritz, P., & Chreneková, M. (2021). What kept the boat afloat? sustainability of employment in knowledge-intensive sectors due to government measures during COVID-19 Pandemic. Sustainability, 13(15), 8441.

Hu, M. K., & Kee, D. M. H. (2021). Fostering sustainability: reinventing SME strategy in the new normal. foresight. https://doi.org/10.1108/FS-03-2021-0080

Klein, V. B., & Todesco, J. L. (2021). COVID‐19 crisis and SMEs responses: The role of digital transformation. Knowledge and Process Management, 28(2), 117-133.

Lai, P. C. (2020). Intention to Use a Drug Reminder App: A Case Study of Diabetics and High Blood Pressure Patients. SAGE Publications Ltd.

Madhani, P. M. (2010). Resource based view (RBV) of competitive advantage: an overview. Resource based view: concepts and practices, Pankaj Madhani, ed, 3-22.

Magar, D. B. T., Pun, S., Pandit, R., & Rola-Rubzen, M. F. (2021). Pathways for building resilience to COVID-19 pandemic and revitalizing the Nepalese agriculture sector. Agricultural Systems, 187, 103022.

Manning, L., Ferris, M., Narvaez Rosario, C., Prues, M., & Bouchard, L. (2019). Spiritual resilience: understanding the protection and promotion of well-being in the later life. Journal of religion, spirituality & aging, 31(2), 168-186. https://doi.org/10.1080/15528030.2018.1532859.

Marconatto, D. A. B., Teixeira, E. G., Peixoto, G. A., & Faccin, K. (2021). Weathering the storm: what successful SMEs are doing to beat the pandemic. Management Decision.

McCarthy, C. (2003). Learning on the job: Moving from faculty to administration. New Directions for Community Colleges, 2003(123), 39-49. https://doi.org/10.1002/cc.120

Mongeon, P., & Paul-Hus, A. (2016). The journal coverage of Web of Science and Scopus: a comparative analysis. Scientometrics, 106(1), 213-228. https://doi.org/10.1007/s11192-015-1765-5

Mulyantini, S., Jubaedah, & SitiHidayati (2020). Strengthening Financial Resilience in the Development of Digital Technology Case Study: Small and Medium Enterprises in Jakarta. Journal of Business and Management, 22(6), 07-20.

Naidoo, V. (2010). Firm survival through a crisis: The influence of market orientation, marketing innovation and business strategy. Industrial marketing management, 39(8), 1311-1320. https://doi.org/10.1016/j.indmarman.2010.02.005

Nan, W., & Park, M. (2021). Improving the resilience of SMEs in times of crisis: The impact of mobile money amid Covid‐19 in Zambia. Journal of International Development.

Nurunnabi, M. (2020). Recovery planning and resilience of SMEs during the COVID-19: experience from Saudi Arabia. Journal of Accounting & Organizational Change.

OECD (2020). Coronavirus (Covid-19): SME Policy Responses. Working Paper. http://www.oecd.org/coronavirus

Omar, A. R. C., Ishak, S., & Jusoh, M. A. (2020). The impact of Covid-19 Movement Control Order on SMEs’ businesses and survival strategies. Geografia, 16(2).

Palmatier, R. W., Sivadas, E., Stern, L. W., & El-Ansary, A. I. (2019). Marketing Channel Strategy: An Omni-channel Approach. Routledge.

Prah, D., & Sibiri, H. (2020). The resilience of African migrant entrepreneurs in China under COVID-19. Journal of Entrepreneurship in Emerging Economies.

Ramanathan, U., Aluko, O., & Ramanathan, R. (2021). Supply chain resilience and business responses to disruptions of the COVID-19 pandemic. Benchmarking: An International Journal.

Ran, L., Chen, X., Wang, Y., Wu, W., Zhang, L., & Tan, X. (2020). Risk factors of healthcare workers with corona virus disease 2019: a retrospective cohort study in a designated hospital of Wuhan in China. Clinical Infectious Diseases.

Rathore, U., & Khanna, S. (2020). From slowdown to lockdown: Effects of the COVID-19 crisis on small firms in India. Available at SSRN 3615339.

Rodrigues, M., Franco, M., Sousa, N., & Silva, R. (2021). COVID-19 and the business management crisis: an empirical study in SMEs. Sustainability, 13(11), 5912.

Rodríguez-López, A. M., Rubio-Valdehita, S., & Díaz-Ramiro, E. M. (2021). Influence of the COVID-19 pandemic on mental workload and burnout of fashion retailing workers in Spain. International Journal of Environmental Research and Public Health, 18(3), 983.

Saad, M. H., Hagelaar, G., van der Velde, G., & Omta, S. W. F. (2021). Conceptualization of SMEs’ business resilience: A systematic literature review. Cogent Business & Management, 8(1), 1938347. https://doi.org/10.1080/23311975.2021.1938347

Sahoo, P., & Ashwani. (2020). COVID-19 and Indian economy: Impact on growth, manufacturing, trade and MSME sector. Global Business Review, 21(5), 1159-1183.

Shah, A. U. M., Safri, S. N. A., Thevadas, R., Noordin, N. K., Abd Rahman, A., Sekawi, Z., ... & Sultan, M. T. H. (2020). COVID-19 outbreak in Malaysia: Actions taken by the Malaysian government. International Journal of Infectious Diseases, 97, 108-116.

Sharma, G. D., Thomas, A., & Paul, J. (2021). Reviving tourism industry post-COVID-19: A resilience-based framework. Tourism management perspectives, 37, 100786. https://doi.org/10.1016/j.tmp.2020.100786

SME Competitive Outlook, 2020

Sobaih, A. E. E., Elshaer, I., Hasanein, A. M., & Abdelaziz, A. S. (2021). Responses to COVID-19: The role of performance in the relationship between small hospitality enterprises’ resilience and sustainable tourism development. International Journal of Hospitality Management, 94, 102824.

Tong, A., & Gong, R. (2020). The impact of COVID-19 on SME digitalisation in Malaysia. The London School of Economics and Political Science.

Wiatt, R. D., Lee, Y. G., Marshall, M. I., & Zuiker, V. S. (2021). The Effect of Cash Flow Problems and Resource Intermingling on Small Business Recovery and Resilience After a Natural Disaster. Journal of family and economic issues, 42(1), 203-214.

Yu-lian, W. A. N. G. (2008). The Optimization Model of Distribution Channels Farm Produce in Heilongjiang Province. Commercial Research, 4.

Published
2022-07-16
How to Cite
Mohamas, Z. Z., Juliana Abu Bakar, Sharmeela-Banu, Mohd Salleh, H., & Ishak, K. (2022). Pandemic to Endemic: A Review of Key Enablers of Small Medium Enterprise Resilience. The Journal of Management Theory and Practice (JMTP), 3(2), 7-17. https://doi.org/10.37231/jmtp.2022.3.2.222
Section
Finance & Economics