Supply Chain Disruptions and Need for Resilience: SMEs Direct/Indirect Exporting and Rapid Internationalization

Abstract

In this article, we explore how small- and medium-sized enterprises (SMEs) handle supply chain disruptions, focusing on their choices between direct and indirect exporting and the pace of internationalization. While past scholars have extensively examined exporting in uncertainty and disruption, they have neglected SMEs, exposing a gap in the extant literature. Drawing on the organizational resilience concept supported by the theoretical lens of dynamic capabilities, the study focuses on resilience in preparing and reconfiguring the supply chain to manage disruptive events. The analysis of 2484 SMEs from 23 countries reveals that SMEs engaging in direct exporting are likely to internationalize more swiftly, influenced by local factors such as corruption, informal competition, and political instability. This study examines a major weakness in the extant literature by casting light on SMEs exporting behavior in disruptive events and underscores the need for resilience-building strategies in SME supply chains to manage future face market disruptions and volatile events.