OPUS: HR Journal

Open Access Open Access  Restricted Access Subscription Access
Open Access Open Access Open Access  Restricted Access Restricted Access Subscription Access

Proposing an Integrative Framework as Small Business Strategic Response to Crisis Evidenced on Stakeholder’s Perspective


Affiliations
1 Assistant Professor- OB&HR, IIM Sambalpur, Odisha, India
2 GNIOT Institute of Management Studies, Greater Noida, Uttar Pradesh, India
3 Professor, Institut Mines-Telecom Business School, 9, Rue Charles Fourier, Evry, France; International Visiting Professor, Alliance University, Chikkahadage Cross Chandapura-Anekal, Main Road, Bengaluru, India
     

   Subscribe/Renew Journal


The global pandemic COVID-19 had worst hit the businesses all over the world particularly micro and small business. The small businesses especially in the essential commodity category have joggled both financial and social front. A quick response to crisis may help small and micro business to sustain and survive, therefore, it appears as a quest for many researchers and practitioners in recent past. Based on social exchange theory, the research paper attempts to understand key issues faced by small business through a case study approach and thereafter identify potential solutions from stakeholder’s perspective through interview. Based on content analysis, the study summarizes and assembles the results into five strategic responses to crisis namely government assured schemes, industry mentoring, eco-system support, owners’ self-sufficiency, and goal-driven business strategy. The paper uniquely demonstrates interactionist view of problem and presents an integrated framework as a response to crisis by small and medium enterprises.

Keywords

Small Business, Stakeholders, Crisis, COVID-19, Strategy, Manufacturing
Subscription Login to verify subscription
User
Notifications
Font Size


  • Ahani, A., Rahim, N. Z. A., & Nilashi, M. (2017, July). Firm performance through social customer relationship management: Evidence from small and medium enterprises. In 2017 International Conference on Research and Innovation in Information Systems (ICRIIS) (pp. 1-6).

  • Alves, J. C., Lok, T. C., Luo, Y., & Hao, W. (2020). Crisis management for small business during the COVID-19 outbreak: Survival, resilience and renewal strategies of firms in Macau, Research Square, 1.

  • Ansell, C., & Boin, A. (2019). Taming deep uncertainty: The potential of pragmatist principles for understanding and improving strategic crisis management. Administration & Society, 51(7), 1079-1112.

  • Asgary, A., Ozdemir, A. I., & Özyürek, H. (2020). Small and medium enterprises and global risks: Evidence from manufacturing SMEs in Turkey. International Journal of Disaster Risk Science, 11(1), 59-73.

  • Bacq, S., Geoghegan, W., Josefy, M., Stevenson, R., & Williams, T. A. (2020). The COVID-19 virtual idea blitz: Marshaling social entrepreneurship to rapidly respond to urgent grand challenges. Business Horizons, 63(6), 705-723.

  • Baker, T. H., & Judge, K. (2020). How to help small businesses survive COVID-19. Columbia Law and Economics Working Paper, (620).

  • Brown, R., & Rocha, A. (2020). Entrepreneurial uncertainty during the COVID-19 crisis: Mapping the temporal dynamics of entrepreneurial finance. Journal of Business Venturing Insights, 14, e00174.

  • Castro, M. P., & Zermeño, M. G. G. (2020). Being an entrepreneur post- COVID-19–resilience in times of crisis: A systematic literature review. Journal of Entrepreneurship in Emerging Economies, 13(4), 721-746.

  • Chell, E., Wicklander, D. E., Sturman, S. G., & Hoover, L. W. (2008). The entrepreneurial personality: A social construction (2nd ed., pp. 111- 140). Routledge.

  • Cortez, R. M., & Johnston, W. J. (2020). The coronavirus crisis in B2B settings: Crisis uniqueness and managerial implications based on social exchange theory. Industrial Marketing Management, 88, 125-135.

  • Cowling, M., Brown, R., & Rocha, A. (2020). Did you save some cash for a rainy COVID-19 day? The crisis and SMEs. International Small Business Journal, 38(7), 593-604.

  • Doern, R., Williams, N., & Vorley, T. (2019). Special issue on entrepreneurship and crises: Business as usual? An introduction and review of the literature. Entrepreneurship & Regional Development, 31(5-6), 400-412.

  • Drnovsek, M., & Glas, M. (2002). The entrepreneurial self-efficacy of nascent entrepreneurs: The case of two economies in transition. Journal of Enterprising Culture, 10(02), 107-131.

  • Eggers, F. (2020). Masters of disasters? Challenges and opportunities for SMEs in times of crisis. Journal of Business Research, 116, 199-208. Farhoud, M., Shah, S., Stenholm, P., Kibler, E., Renko, M., & Terjesen, S. (2021). Social enterprise crowdfunding in an acute crisis. Journal of Business Venturing Insights, 15.

  • Giones, F., Brem, A., Pollack, J. M., Michaelis, T. L., Klyver, K., & Brinckmann, J. (2020). Revising entrepreneurial action in response to exogenous shocks: Considering the COVID-19 pandemic. Journal of Business Venturing Insights, 14, e00186.

  • Heinicke, A. (2018). Performance measurement systems in small and medium-sized enterprises and family firms: A systematic literature review. Journal of Management Control, 28(4), 457-502.

  • Hornaday, J. A., & Aboud, J. (1971). Characteristics of successful entrepreneurs. Personnel Psychology, 24(2), 141-153.

  • Hyder, S., & Lussier, R. N. (2016). Why businesses succeed or fail: A study on small businesses in Pakistan. Journal of Entrepreneurship in Emerging Economies, 8(1), 82-100.

  • Ioniţă, D. (2013). Success and goals: An exploratory research in small enterprises. Procedia Economics and Finance, 6, 503-511.

  • Kalogiannidis, S. (2020). COVID impact on small business. International Journal of Social Science and Economics Invention, 6(12), 387-391.

  • Kawaguchi, K., Kodama, N., & Tanaka, M. (2021). Small business under the COVID-19 crisis: Expected short-and medium-run effects of anti-contagion and economic policies. Journal of the Japanese and International Economies, 61, 101138.

  • Kirk, C. P., & Rifkin, L. S. (2020). I’ll trade you diamonds for toilet paper: Consumer reacting, coping and adapting behaviors in the COVID-19 pandemic. Journal of Business Research, 117, 124-131.

  • Kraus, S., Clauss, T., Breier, M., Gast, J., Zardini, A., & Tiberius, V. (2020). The economics of COVID-19: Initial empirical evidence on how family firms in five European countries cope with the corona crisis. International Journal of Entrepreneurial Behavior & Research, 26(5), 1067-1092.

  • Kuckertz, A. (2019). Let’s take the entrepreneurial ecosystem metaphor seriously! Journal of Business Venturing Insights, 11, e00124.

  • Kuckertz, A., Brändle, L., Gaudig, A., Hinderer, S., Reyes, C. A. M., Prochotta, A.,...Berger, E. S. (2020). Startups in times of crisis - A rapid response to the COVID-19 pandemic. Journal of Business Venturing Insights, 13, e00169.

  • Lagat, C., & Frankwick, G. L. (2017). Marketing capability, marketing strategy implementation and performance in small firms. Journal for Global Business Advancement, 10(3), 327-345.

  • McKnight, B., & Linnenluecke, M. K. (2016). How firm responses to natural disasters strengthen community resilience: A stakeholder- based perspective. Organization & Environment, 29(3), 290-307.

  • McClelland, D. C. (2016). The achieving society (pp. 159-205). New York: The Macmillan Company.

  • Muñoz, P., Naudé, W., Williams, N., Williams, T., & Frías, R. (2020). Reorienting entrepreneurial support infrastructure to tackle a social crisis: A rapid response. Journal of Business Venturing Insights, 14, e00181.

  • Nassif, V., Armando, E, & La Falce, J. L. (2020). Entrepreneurship and small business in the context of post COVID-19: Is there light at the end of the tunnel? Iberoamerican Journal of Entrepreneurship and Small Business – REGEPE, 10(3), 1-7.

  • Nicola, M., Alsafi, Z., Sohrabi, C., Kerwan, A., Al-Jabir, A., Iosifidis, C.,...Agha, R. (2020). The socio-economic implications of the coronavirus pandemic (COVID-19): A review. International Journal of Surgery, 78, 185-193.

  • Ong, J. W., & Ismail, H. B. (2012). Competitive advantage and firm performance: Evidence from small and medium enterprises. International Journal of Business and Globalisation, 9(2), 195-206.

  • Pantano, E., Pizzi, G., Scarpi, D., & Dennis, C. (2020). Competing during a pandemic? Retailers’ ups and downs during the COVID-19 outbreak. Journal of Business Research, 116, 209-213.

  • Roxas, B., Ashill, N., & Chadee, D. (2017). Effects of entrepreneurial and environmental sustainability orientations on firm performance: A study of small businesses in the Philippines. Journal of Small Business Management, 55, 163-178.

  • Sautet, F. (2008). Ventures in rebuilding: The role of entrepreneurship in the post-disaster context. Local Knowledge, (1).

  • Spigel, B. (2017). The relational organization of entrepreneurial ecosystems. Entrepreneurship Theory and Practice, 41(1), 49-72.

  • Teece, D. J. (2007). Explicating dynamic capabilities: The nature and microfoundations of (sustainable) enterprise performance. Strategic Management Journal, 28(13), 1319-1350.

  • Wang, C. L., Senaratne, C., & Rafiq, M. (2015). Success traps, dynamic capabilities and firm performance. British Journal of Management, 26(1), 26-44.

  • Wang, Y., Hong, A., Li, X., & Gao, J. (2020). Marketing innovations during a global crisis: A study of China firms’ response to COVID-19. Journal of Business Research, 116, 214-220.


Abstract Views: 288

PDF Views: 0




  • Proposing an Integrative Framework as Small Business Strategic Response to Crisis Evidenced on Stakeholder’s Perspective

Abstract Views: 288  |  PDF Views: 0

Authors

Shikha Bhardwaj
Assistant Professor- OB&HR, IIM Sambalpur, Odisha, India
Shalini Sharma
GNIOT Institute of Management Studies, Greater Noida, Uttar Pradesh, India
Bhumika Gupta Gupta
Professor, Institut Mines-Telecom Business School, 9, Rue Charles Fourier, Evry, France; International Visiting Professor, Alliance University, Chikkahadage Cross Chandapura-Anekal, Main Road, Bengaluru, India

Abstract


The global pandemic COVID-19 had worst hit the businesses all over the world particularly micro and small business. The small businesses especially in the essential commodity category have joggled both financial and social front. A quick response to crisis may help small and micro business to sustain and survive, therefore, it appears as a quest for many researchers and practitioners in recent past. Based on social exchange theory, the research paper attempts to understand key issues faced by small business through a case study approach and thereafter identify potential solutions from stakeholder’s perspective through interview. Based on content analysis, the study summarizes and assembles the results into five strategic responses to crisis namely government assured schemes, industry mentoring, eco-system support, owners’ self-sufficiency, and goal-driven business strategy. The paper uniquely demonstrates interactionist view of problem and presents an integrated framework as a response to crisis by small and medium enterprises.

Keywords


Small Business, Stakeholders, Crisis, COVID-19, Strategy, Manufacturing

References