SME Resilience to Covid-19
Insights from Non-Essential Service Providers in Nairobi
Keywords:SME resilience, Covid-19, non-Essential service providers, Systemic disruptive events, Resource Orchestration
The theory of dynamic resource orchestration explains the differentiated response of homogeneous ecosystem organizations to systemic disruptive shocks. The Covid-19 precautionary measures in Kenya have exempted some essential service providers and government agencies, resulting in a differentiated Covid-19 impact across the national SMEs landscape. This article adopted an extractive thematic analysis technique to draw insights from in-depth interviews and discussions with owners and managers of 6 broad-range SMEs considered non-essential services providers excluded from the Covid-19 cessation of movement waiver. The article advanced insights on SMEs' resilience through dynamic resource orchestration capability. It sought to establish whether the possession and orchestration of dynamic resources capabilities differentiated highly resilient SMEs from non-resilient ones. The article identified business diversification, slack finance, intra-stakeholder collaboration, self-reinvention, positive psychology, technology leverage, and cost management as precursory resilience agents within Kenyan SMEs. Research gaps were identified, and recommendations for future research were proposed.
Affa, A. S., Wibowo, M. G., & Berakon, I. (2020). Resilience ability and small and medium enterprise (SME) survival rate in the middle of business environmental fluctuation. Journal of Islamic Economics Management and Business, 2(1), 1-30.
Albers, S., & Rundshagen, V. (2020). European airlines? strategic responses to the COVID-19 pandemic (January-May, 2020). Journal of Air Transport Management, 87, 101863. https://doi.org/https://doi.org/10.1016/j.jairtraman.2020.101863
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. https://doi.org/https://doi.org/10.1504/ijlic.2018.10010129
Aluga, M. A. (2020). Coronavirus Disease 2019 (COVID-19) in Kenya: Preparedness, response and transmissibility. Journal of Microbiology, Immunology and Infection, 53(5), 671-673. https://doi.org/https://doi.org/10.1016/j.jmii.2020.04.011
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. https://doi.org/https://doi.org/10.21203/rs.3.rs-34541/v1
Arrighetti, A., Landini, F., & Bartoloni, E. (2018). Firm survival during economic downturns: is selecton based on cleansing or skill accumulation?
Bao, G., Zhang, W., Xiao, Z., & Hine, D. (2020). Slack resources and growth performance: The mediating roles of product and process innovation capabilities. Asian Journal of Technology Innovation, 28(1), 60-76. https://doi.org/https://doi.org/10.1080/19761597.2019.1700383
Berseck, N. (2018). Resource Orchestration as Source of Competitive Advantage of Cities–Empirical Studies of Business Improvement Districts in New York City and the City of Hamburg. Technische Universitaet Berlin (Germany).
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/https://doi.org/10.1016/j.sbspro.2014.07.092
Branco, J. M., Ferreira, F. A., Meidut??Kavaliauskien?, I., Banaitis, A., & Falcão, P. F. (2019). Analysing determinants of small and medium?sized enterprise resilience using fuzzy cognitive mapping. Journal of Multi?Criteria Decision Analysis, 26(5-6), 252-264. https://doi.org/https://doi.org/10.1002/mcda.1662
Branicki, L. J., Sullivan-Taylor, B., & Livschitz, S. R. (2017). How entrepreneurial resilience generates resilient SMEs. International Journal of Entrepreneurial Behavior & Research. https://doi.org/https://doi.org/10.1108/ijebr-11-2016-0396
Campos, K. (2015). Dimensions of business resilience in the context of post-disaster recovery in Davao City, Philippines. Society of Interdisciplinary Business Research Conference (2015), Review Integrated Business Research (RIBER),
Chen, R., Xie, Y., & Liu, Y. (2021). Defining, Conceptualizing, and Measuring Organizational Resilience: A Multiple Case Study. Sustainability, 13(5), 2517.
Chowdhury, M. S., Ahmmed, F., & Hossain, I. (2020). Methodological dilemma in microfinance research: Applicability of a qualitative case study design. The Qualitative Report, 25(2), 271-290. https://doi.org/https://doi.org/10.46743/2160-3715/2020.3962
Czerny, A. I., Fu, X., Lei, Z., & Oum, T. H. (2021). Post pandemic aviation market recovery: Experience and lessons from China. Journal of Air Transport Management, 90, 101971. https://doi.org/https://doi.org/10.1016/j.jairtraman.2020.101971
Dijk, M. (2020). How entrepreneur resilience impacts the utilization of innovation in dealing with adversities like the COVID-19 pandemic in the restaurant industry in the Netherlands University of Twente].
Dolmans, S. A., van Burg, E., Reymen, I. M., & Romme, A. G. L. (2014). Dynamics of resource slack and constraints: Resource positions in action. Organization Studies, 35(4), 511-549.
Dube, K., Nhamo, G., & Chikodzi, D. (2021). COVID-19 pandemic and prospects for recovery of the global aviation industry. Journal of Air Transport Management, 92, 102022. https://doi.org/https://doi.org/10.1016/j.jairtraman.2021.102022
Dyduch, W., Chudzi?ski, P., Cyfert, S., & Zastempowski, M. (2021). Dynamic capabilities, value creation and value capture: Evidence from SMEs under Covid-19 lockdown in Poland. Plos one, 16(6), e0252423. https://doi.org/https://doi.org/10.1371/journal.pone.0252423
Ebneyamini, S., & Sadeghi Moghadam, M. R. (2018). Toward developing a framework for conducting case study research. International journal of qualitative methods, 17(1), 1609406918817954. https://doi.org/https://doi.org/10.1177/1609406918817954
Elliott, V. (2018). Thinking about the coding process in qualitative data analysis. The Qualitative Report, 23(11), 2850-2861. https://doi.org/https://doi.org/10.46743/2160-3715/2018.3560
Furnival, J., Boaden, R., & Walshe, K. (2019). A dynamic capabilities view of improvement capability. Journal of Health Organization and Management. https://doi.org/https://doi.org/10.1108/jhom-11-2018-0342
Gupta, R. (2019). Entrepreneurship orientation (EO), resources, and small firm growth: Evidence from India. International Journal of Business and Economics, 18(1), 41-58.
Hillmann, J., & Guenther, E. (2021). Organizational resilience: a valuable construct for management research? International Journal of Management Reviews, 23(1), 7-44. https://doi.org/https://doi.org/10.1111/ijmr.12239
Islam, A., Jerin, I., Hafiz, N., Nimfa, D. T., & Wahab, S. A. (2021). Configuring a blueprint for Malaysian SMEs to survive through the COVID-19 crisis: The reinforcement of Quadruple Helix Innovation Model. Journal of Entrepreneurship, Business and Economics, 9(1), 32-81.
Islam, D. M. Z., Khalid, N., Rayeva, E., & Ahmed, U. (2020). COVID-19 and Financial Performance of SMEs: Examining the Nexus of Entrepreneurial Self-Efficacy, Entrepreneurial Resilience and Innovative Work Behavior. Revista Argentina de Clínica Psicológica, 29(3), 587.
Kantur, D. (2015). Measuring Organizational Resilience: A Scale Development. Pressacademia, 4(3), 456-456. https://doi.org/https://doi.org/10.17261/pressacademia.2015313066
Kenya National Bureau of Statistics (2016). The 2016 National Micro, Small and Medium Establishment (MSME) Survey: Highlights of Basic Report. Retrieved on August 25, 2021 from https://www.undp.org.
Lu, Y., Wu, J., Peng, J., & Lu, L. (2020). The perceived impact of the Covid-19 epidemic: evidence from a sample of 4807 SMEs in Sichuan Province, China. Environmental Hazards, 19(4), 323-340. https://doi.org/https://doi.org/10.1080/17477891.2020.1763902
Masago, M. O., Okombo, M. O., Alice, S., Reuben, K. G., Chaka, B., Godrick, B., & Joshua, O. K. (2020). Effects of COVID-19 Pandemic on Small & Middle-Income Economies (SMEs) in Developing Nations: A Case Study of Narok Town, Kenya. https://doi.org/https://doi.org/10.29333/djfm/9301
Mbae, N. (2020). COVID-19 in Kenya. Electronic Journal of General Medicine, 17(6). https://doi.org/https://doi.org/10.29333/ejgm/7896
Ministry of Industrialization, Trade and Enterprise Development (2012). Micro and Small Enterprise Act, 2012. Retrieved on September 4, 2021, from https://www.industrialization.go.ke/index.php/policies/99.
Nguyen, P. V., Huynh, H. T. N., Trieu, H. D. X., & Tran, K. T. (2019). Internationalization, strategic slack resources, and firm performance: The case study of Vietnamese enterprises. Journal of Risk and Financial Management, 12(3), 144. https://doi.org/ https://doi.org/10.3390/jrfm12030144
Noor, F. A. (2020). Effect of covid-19 on loan repayment of small businesses in kenya: A case study of eastleigh business community. European Journal of Business and Strategic Management, 5(2), 1-14. https://doi.org/https://doi.org/10.47604/ejbsm.1122
Nowell, L. S., Norris, J. M., White, D. E., & Moules, N. J. (2017). Thematic analysis: Striving to meet the trustworthiness criteria. International journal of qualitative methods, 16(1), 1609406917733847. https://doi.org/https://doi.org/10.1177/1609406917733847
Nyamboga, T. O., & Ali, H. A. (2021). Influence of covid-19 on performance of small and micro enterprises in kenya: A case of kenya women finance trust in garissa township sub county, kenya. https://doi.org/https://doi.org/10.17576/geo-2020-1602-11
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-Malaysian Journal of Society and Space, 16(2).
Peuscher, D. (2016). The resource orchestration theory as contributor to supply chain management: An assessment on its applicability University of Twente].
Radovi?-Markovi?, M., Shoaib Farooq, M., & Markovi?, D. (2017). Strengthening the resilience of small and medium-sized enterprises. Review of applied socio-economic research, 345-356.
Ridder, H.-G. (2017). The theory contribution of case study research designs. Business Research, 10(2), 281-305. https://doi.org/https://doi.org/10.1007/s40685-017-0045-z
Saad, M. H., Hagelaar, G., Van der Velde, G., & Omta, S. (2021). Conceptualization of SMEs’ business resilience: A systematic literature review. Cogent Business & Management, 8(1), 1938347. https://doi.org/https://doi.org/10.1080/23311975.2021.1938347
Starman, A. B. (2013). The case study as a type of qualitative research. Journal of Contemporary Educational Studies/Sodobna Pedagogika, 64(1).
Suleiman, M. A. (2020). Assessing the Economic Security Impacts of Covid-19 Pandemic: Key Responses and Challenges in Kenya University of Nairobi].
Sun, T., Zhang, W.-W., Dinca, M. S., & Raza, M. (2021). Determining the impact of Covid-19 on the business norms and performance of SMEs in China. Economic Research-Ekonomska Istraživanja, 1-20. https://doi.org/https://doi.org/10.1080/1331677x.2021.1937261
The Center for Policy Impact in Global Health (2020). Kenya Policy Response to Covid-19. Retrieved on August 20, 2021 from https://centerforpolicyimpact.org/wp-content/uploads/sites/18/2020/08/Kenya-Policy-Response-to-COVID.pdf.
Vanacker, T., Collewaert, V., & Zahra, S. A. (2017). Slack resources, firm performance, and the institutional context: evidence from privately held E uropean firms. Strategic Management Journal, 38(6), 1305-1326.
Wangari, E. N., Gichuki, P., Abuor, A. A., Wambui, J., Okeyo, S. O., Oyatsi, H. T., Odikara, S., & Kulohoma, B. W. (2021). Kenya’s response to the COVID-19 pandemic: a balance between minimising morbidity and adverse economic impact. AAS Open Research, 4. https://doi.org/https://doi.org/10.12688/aasopenres.13156.1
Zubair, S., Kabir, R., & Huang, X. (2020). Does the financial crisis change the effect of financing on investment? Evidence from private SMEs. Journal of Business Research, 110, 456-463. https://doi.org/https://doi.org/10.1016/j.jbusres.2020.01.063
Zutshi, A., Mendy, J., Sharma, G. D., Thomas, A., & Sarker, T. (2021). From Challenges to Creativity: Enhancing SMEs’ Resilience in the Context of COVID-19. Sustainability, 13(12), 6542. https://doi.org/https://doi.org/10.3390/su13126542
How to Cite
Copyright (c) 2021 International Journal of Finance & Banking Studies (2147-4486)
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
Authors contributing to IJFBS agree to publish their articles under the Creative Commons Attribution- 4.0 NC license, allowing third parties to share their work (copy, distribute, transmit) and to adapt it, under the condition that the authors are given credit, that the work is not used for commercial purposes, and that in the event of reuse or distribution, the terms of this license are made clear. Authors retain copyright of their work, with first publication rights granted to IJFBS. However, authors are required to transfer copyrights associated with commercial use to the Publisher. The authors agree to the terms of this Copyright Notice, which will apply to this submission if and when it is published by this journal
Submission of an article implies that the work described has not been published previously( exceptin the form of an abstract or as part of a published lecture or academic thesis), that it is not under consideration for publication elsewhere, that its publication is approved by all authors and tacitly or explicitly by the responsible authorities where the work was carried out, and that, if accepted, it will not be published elsewhere in the same form, in English or in any other languages, without the written consent of the Publisher. The Editors reserve the right to edit or otherwise alter all contributions, but authors will receive proofs for approval before publication