IDEAS home Printed from https://ideas.repec.org/a/bjc/journl/v11y2024i1p385-404.html
   My bibliography  Save this article

Managerial Strategies for Organisational Resilience in SME Sector

Author

Listed:
  • Nalinda Nuwan

    (Office on Missing Person, No.40, Buthgamuwa Road, Rajagiriya, Sri Lanka)

  • Mohd Shukri

    (Graduate School of Management, Management & Science University, University Drive, Off Persiaran Olahraga, Section 13, 40100 Shah Alam, Malaysia)

  • Ali Khatibi

    (Graduate School of Management, Management & Science University, University Drive, Off Persiaran Olahraga, Section 13, 40100 Shah Alam, Malaysia)

Abstract

The current marketplace is constantly evolving, challenging for business leaders and various market turbulences have occurred recently which has impacted all economic and business sectors. Organisational resilience refers to a company’s capacity to successfully bounce back to the normal situation after economic shocks. Resilient firms can also integrate and improve strategies efficiently to manage disruptive occurrences. However, applying right strategies necessitate a diverse set of resources, and enterprises might become more resource-dependent in times of economic crisis. Strategic agility and dynamic capability encompass an organisation’s capacity to build and rapidly deploy flexible, nimble, and dynamic resources. Strategic agility and organisational resilience operate together to adapt to changing conditions, re-energize. Firms with resilience capacity can traverse several types of SA and adapt successfully to changing situations. Consequently, strengthening OR, particularly in the SME sector, is critical, as they are the most susceptible firms, characterized by dynamism and frequently a lack of resources. Therefore, leaders of SMEs have to strategize strategic agility, dynamic capability and strategic orientation properly to foster organisational resilience. The purpose of this study is to examine the effect of strategic agility, dynamic capability, strategic orientation on organisational resilience. Accordingly, raw data was collected from 440 SME leaders using quantitative techniques and the findings of the study revealed that Strategic agility and strategic orientation have a significant effect in fostering organisational resilience in SME sector in Sri Lanka. Findings further highlight that strategic sensitivity has a bigger role in fostering resiliency. The findings suggest that strategic agility plays an important role in fostering proactive organisational resilience, while strategic orientation plays a prominent role in developing reactive organisational resilience. In addition, both proactive and reactive organisational resilience significantly support to foster firm resilience. Therefore, SME leaders need to identify enablers of organisational resilience in line with firm characteristics and economic uncertainty of the market.

Suggested Citation

  • Nalinda Nuwan & Mohd Shukri & Ali Khatibi, 2024. "Managerial Strategies for Organisational Resilience in SME Sector," International Journal of Research and Scientific Innovation, International Journal of Research and Scientific Innovation (IJRSI), vol. 11(1), pages 385-404, November.
    • Handle: RePEc:bjc:journl:v:11:y:2024:i:1:p:385-404
    as

    Download full text from publisher

    File URL: https://www.rsisinternational.org/journals/ijrsi/digital-library/volume-11-issue-1/385-404.pdf
    Download Restriction: no
    File URL: https://rsisinternational.org/journals/ijrsi/articles/managerial-strategies-for-organisational-resilience-in-sme-sector/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Virginia Simón-Moya & Lorenzo Revuelto-Taboada & Domingo Ribeiro-Soriano, 2016. "Influence of economic crisis on new SME survival: reality or fiction?," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 28(1-2), pages 157-176, January.
    2. Soininen, Juha & Martikainen, Minna & Puumalainen, Kaisu & Kyläheiko, Kalevi, 2012. "Entrepreneurial orientation: Growth and profitability of Finnish small- and medium-sized enterprises," International Journal of Production Economics, Elsevier, vol. 140(2), pages 614-621.
    3. Paul, Justin & Parthasarathy, Sundar & Gupta, Parul, 2017. "Exporting challenges of SMEs: A review and future research agenda," Journal of World Business, Elsevier, vol. 52(3), pages 327-342.
    4. Iftikhar, Anas & Purvis, Laura & Giannoccaro, Ilaria, 2021. "A meta-analytical review of antecedents and outcomes of firm resilience," Journal of Business Research, Elsevier, vol. 135(C), pages 408-425.
    5. Ahmed Mohammed & Ana Beatriz Lopes de Sousa Jabbour & Ali Diabat, 2023. "COVID-19 pandemic disruption: a matter of building companies’ internal and external resilience," International Journal of Production Research, Taylor & Francis Journals, vol. 61(8), pages 2716-2737, April.
    6. Wenchuan Huang & Shouming Chen & Luu Thi Nguyen, 2020. "Corporate Social Responsibility and Organizational Resilience to COVID-19 Crisis: An Empirical Study of Chinese Firms," Sustainability, MDPI, vol. 12(21), pages 1-19, October.
    7. Teece, David J., 2020. "Hand in Glove: Open Innovation and the Dynamic Capabilities Framework," Strategic Management Review, now publishers, vol. 1(2), pages 233-253, June.
    8. Kathleen M. Eisenhardt & Jeffrey A. Martin, 2000. "Dynamic capabilities: what are they?," Strategic Management Journal, Wiley Blackwell, vol. 21(10‐11), pages 1105-1121, October.
    9. Jantunen, Ari & Nummela, Niina & Puumalainen, Kaisu & Saarenketo, Sami, 2008. "Strategic orientations of born globals--Do they really matter?," Journal of World Business, Elsevier, vol. 43(2), pages 158-170, March.
    10. Linnenluecke, Martina K. & Griffiths, Andrew, 2010. "Corporate sustainability and organizational culture," Journal of World Business, Elsevier, vol. 45(4), pages 357-366, October.
    11. Annarelli, Alessandro & Nonino, Fabio, 2016. "Strategic and operational management of organizational resilience: Current state of research and future directions," Omega, Elsevier, vol. 62(C), pages 1-18.
    12. David J. Teece & Gary Pisano & Amy Shuen, 1997. "Dynamic capabilities and strategic management," Strategic Management Journal, Wiley Blackwell, vol. 18(7), pages 509-533, August.
    13. Sahebjamnia, Navid & Torabi, S. Ali & Mansouri, S. Afshin, 2018. "Building organizational resilience in the face of multiple disruptions," International Journal of Production Economics, Elsevier, vol. 197(C), pages 63-83.
    14. A. Mohammed & Ana Beatriz Lopes de Sousa Jabbour & A. Diabat, 2023. "COVID-19 Pandemic Disruption: A Matter of Building Companies' Internal and External Resilience," Post-Print hal-04276027, HAL.
    15. Stephanie Duchek, 2020. "Organizational resilience: a capability-based conceptualization," Business Research, Springer;German Academic Association for Business Research, vol. 13(1), pages 215-246, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Slawomir Zaplata, 2024. "Tying Up Loose Ends in Organizational Resilience– Current Status and Future Directions," European Research Studies Journal, European Research Studies Journal, vol. 0(4), pages 714-734.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Xin Huang & Huitong Yang & Peijin Yang, 2024. "The Impact of Cross-Border Mergers and Acquisitions on Corporate Organisational Resilience: Insights from Dynamic Capability Theory," Sustainability, MDPI, vol. 16(6), pages 1-23, March.
    2. Bui Quang Hung & Tran Anh Hoa & Tu Thanh Hoai & Nguyen Phong Nguyen, 2024. "Resilience and Performance Among Vietnamese Business Organizations in Turbulent Environments: How Do Digitalized Management Accounting Systems and Organizational Mindfulness Matter?," SAGE Open, , vol. 14(3), pages 21582440241, August.
    3. Julia Eichholz & Nicole Hoffmann & Anja Schwering, 2024. "The role of risk management orientation and the planning function of budgeting in enhancing organizational resilience and its effect on competitive advantages during times of crises," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 35(1), pages 17-58, March.
    4. Yuan, Ruizhi & Luo, Jun & Liu, Martin J. & Yu, Jiang, 2022. "Understanding organizational resilience in a platform-based sharing business: The role of absorptive capacity," Journal of Business Research, Elsevier, vol. 141(C), pages 85-99.
    5. Sooksan Kantabutra & Nuttasorn Ketprapakorn, 2021. "Toward an Organizational Theory of Resilience: An Interim Struggle," Sustainability, MDPI, vol. 13(23), pages 1-28, November.
    6. Mohammed, Ahmed & Yazdani, Morteza & Govindan, Kannan & Chatterjee, Prasenjit & Hubbard, Nicolas, 2023. "Would your company’s resilience be internally viable after COVID-19 pandemic disruption?: A new PADRIC-based diagnostic methodology," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 180(C).
    7. Sjödin, David & Liljeborg, Alexander & Mutter, Sermed, 2024. "Conceptualizing ecosystem management capabilities: Managing the ecosystem-organization interface," Technological Forecasting and Social Change, Elsevier, vol. 200(C).
    8. Hana Kim & Eungdo Kim, 2018. "How an Open Innovation Strategy for Commercialization Affects the Firm Performance of Korean Healthcare IT SMEs," Sustainability, MDPI, vol. 10(7), pages 1-14, July.
    9. Nay Chi Khin Khin Oo & Sirisuhk Rakthin, 2022. "Integrative Review of Absorptive Capacity’s Role in Fostering Organizational Resilience and Research Agenda," Sustainability, MDPI, vol. 14(19), pages 1-27, October.
    10. Mandler, Timo & Sezen, Burcu & Chen, Jieke & Özsomer, Ayşegül, 2021. "Performance consequences of marketing standardization/adaptation: A systematic literature review and future research agenda," Journal of Business Research, Elsevier, vol. 125(C), pages 416-435.
    11. Ana Maria Corrales-Estrada & Loyda Lily Gómez-Santos & Cesar Augusto Bernal-Torres & Jaime Eric Rodriguez-López, 2021. "Sustainability and Resilience Organizational Capabilities to Enhance Business Continuity Management: A Literature Review," Sustainability, MDPI, vol. 13(15), pages 1-25, July.
    12. Yingqi Liu & Ruijun Chen & Fei Zhou & Shuang Zhang & Juan Wang, 2021. "Analysis of the Influencing Factors of Organizational Resilience in the ISM Framework: An Exploratory Study Based on Multiple Cases," Sustainability, MDPI, vol. 13(23), pages 1-24, December.
    13. Figueiredo, Marco & Ferreira, João J. & Vrontis, Demetris, 2024. "Perspectives on dynamic capabilities and ambidexterity in born-global companies: Theoretical framing, review and research agenda," Journal of International Management, Elsevier, vol. 30(1).
    14. Solano Acosta, Alexandra & Herrero Crespo, Ángel & Collado Agudo, Jesús, 2018. "Effect of market orientation, network capability and entrepreneurial orientation on international performance of small and medium enterprises (SMEs)," International Business Review, Elsevier, vol. 27(6), pages 1128-1140.
    15. Paraskevi (Evi) Dekoulou & Anna Anastasopoulou & Panagiotis Trivellas, 2023. "Employee Performance Implications of CSR for Organizational Resilience in the Banking Industry: The Mediation Role of Psychological Empowerment," Sustainability, MDPI, vol. 15(15), pages 1-20, August.
    16. Maksim Belitski & Christina Guenther & Alexander S. Kritikos & Roy Thurik, 2022. "Economic effects of the COVID-19 pandemic on entrepreneurship and small businesses," Small Business Economics, Springer, vol. 58(2), pages 593-609, February.
    17. Phong Nguyen, Nguyen & Adomako, Samuel & Ahsan, Mujtaba, 2023. "The base-of- the-pyramid orientation and export performance of Vietnamese small and medium enterprises," Journal of Business Research, Elsevier, vol. 154(C).
    18. Buccieri, Dominic & Javalgi, Raj G. & Cavusgil, Erin, 2023. "Role of opportunity creation between reconfiguration and innovation: Insights from emerging market international new ventures," International Business Review, Elsevier, vol. 32(4).
    19. Ahmed Saleh Al-Matari & Rozita Amiruddin & Khairul Azman Aziz & Mohammed A. Al-Sharafi, 2022. "The Impact of Dynamic Accounting Information System on Organizational Resilience: The Mediating Role of Business Processes Capabilities," Sustainability, MDPI, vol. 14(9), pages 1-22, April.
    20. Soluk, Jonas & Decker-Lange, Carolin & Hack, Andreas, 2023. "Small steps for the big hit: A dynamic capabilities perspective on business networks and non-disruptive digital technologies in SMEs," Technological Forecasting and Social Change, Elsevier, vol. 191(C).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bjc:journl:v:11:y:2024:i:1:p:385-404. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dr. Renu Malsaria (email available below). General contact details of provider: https://rsisinternational.org/journals/ijrsi/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.