Digitalizing in crisis: the role of organizational resilience in SMEs’ digitalization

Abstract

Purpose

Several studies have shown that economic shock and crisis trigger companies to move forward innovatively. This paper aims to compliment this research topic by investigating how SMEs activate their organization resilience to adapt to changes generated by a crisis, with specific focus on how digitalization is used as an opportunity on this road. COVID-19 pandemic provided the context to investigate this situation.

Design/methodology/approach

The research approach combines literature review, quantitative data survey and data analysis and modeling using PLS-SEM. The quantitative data survey provided the database for building the structural equation model, exploring the structural relationships between the constructs and testing the hypotheses. Expert discussions contributed to the validation and interpretation of the results.

Findings

The model reveals that while organizational resilience has no direct effect on digitalization, combined with available resources, it realizes its indirect impact. Resilient companies require less external financial support to achieve their digitalization goals. The results also confirm that an uncertain environment encourages SMEs to go digital.

Originality/value

Several research studies highlighted the importance of SMEs in recovery from crises. Knowing more about how they can be supported and what capabilities they should develop is essential. This research explores the relationship between organizational resilience, resource availability and digitalization for SMEs in crises like the COVID-19 pandemic, revealing the self-reinforcing effect of organizational resilience and the level of digitalization that was not previously studied.