Procyclical and countercyclical strategies in MSMes performance in a crisis context: A study based on the COVID-19 pandemic

Objective: To investigate the impact of procyclical and countercyclical strategies on the performance of MSMEs in the context of the Covid-19 crisis. Methodology/approach: Quantitative sample, with 118 micro, small, and medium-sized companies in Minas Gerais, Brazil. Spearman's correlation analysis and multiple linear regression analysis were used. Main Results: In the period dominated by the pandemic (2020/2021), countercyclical strategies performed better than procyclical strategies. Theoretical/methodological contributions: Although the literature explores procyclical strategies, studies that associate the influence of procyclical and countercyclical strategies with organizational performance still need to be made available. This gap is even more evident when MSMEs in crisis contexts are considered. By associating still new dimensions, such as HR, marketing, and production, among others, this article helps to fill gaps associated with, even today, a lack of work that seeks integrated models capable of better understanding the impact that crises, such as COVID-19. Relevance/Originality: The article innovates by associating, in the context of the literature on the crisis, the two types of strategies (countercyclical and procyclical) in the elaboration and testing of an integrated analytical model composed of different variables, and capable of being used not only in new research as well as in the business context. Social/management contributions: By demonstrating that cuts in investments in marketing and other areas produce adverse effects on performance and that organizations benefit by keeping employees instead of firing them, this study sheds light on the relevance of countercyclical strategies, which still need to be explored.