The impact of the global crisis on the growth of SMEs: A resource system perspective

In this commentary, we examine both the positive and negative potential impact of the COVID-19 pandemic on the growth of small- and medium-sized enterprises (SMEs). We conceptualise the firm as a system of various resource components (strategic, physical, financial, human and organisational resource...

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Bibliographic Details
Published in:International small business journal 2020-09, Vol.38 (6), p.492-503
Main Authors: Lim, Dominic SK, Morse, Eric A, Yu, Naryoung
Format: Article
Language:English
Subjects:
COVID-19
Crises
Entrepreneurs
Pandemics
Realignment
Small & medium sized enterprises-SME
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Summary:In this commentary, we examine both the positive and negative potential impact of the COVID-19 pandemic on the growth of small- and medium-sized enterprises (SMEs). We conceptualise the firm as a system of various resource components (strategic, physical, financial, human and organisational resources) and firm growth as the expansion of this resource system. Based on qualitative data drawn from Canadian high-growth SMEs, we discuss the potential impact of the crisis on these resource system components. We demonstrate how virtuous growth spirals of these resources co-evolve through various feedback and feed-forward loops. Furthermore, we discuss how a temporary growth setback, due to the crisis, can in fact provide an opportunity for entrepreneurs to realign, and regain the balance and fit within their firm’s resource system. This realignment enables the firm to take on the next phase of growth.
ISSN:0266-2426
1741-2870
DOI:10.1177/0266242620950159