RESILIENCE STRATEGIES AND SUSTAINABILITY OF SMALL BUSINESSES: A CONVERGENCE APPROACH

Israel Olabode Aroge

doi:10.70882/

Authors

Israel Olabode Aroge
io.aroge@oaustech.edu.ng

Olusegun Agagu University of Science and Technology, Okitipupa, Ondo State Nigeria

Keywords:

Innovation, Resilience, Sustainability, Small Business, Strategic Networking

Abstract

This study examined the convergence of resilience strategies and sustainability practices among selected Small and Medium Businesses (SMBs) in Ondo State, Nigeria, with broader implications for SMB resilience and sustainable business development in Nigeria. The study was guided by Dynamic Capabilities Theory and Resilience Theory, which provided an integrated framework for understanding how SMBs developed adaptive capacities and adopted sustainability-oriented practices in response to challenging business conditions. A mixed-methods research design was used, and primary data were collected from SMB owners and managers through structured questionnaires. Also, 50 questionnaires were administered, 31 were validly completed and returned, representing a 62% response rate. Besides, quantitative data were analyzed using descriptive statistics with the Statistical Package for the Social Sciences (SPSS). The findings showed that financial constraints, unfavourable government policies, and prevailing economic conditions constituted major challenges confronting the surveyed SMBs. Moreover, diversification and cost reduction emerged as the most prominent resilience strategies, alongside innovation, partnerships and collaboration, and risk-management practices. Also, sustainability practices, most especially employee management, product quality, customer relationships, and waste reduction, were also found to support business resilience and continuity. However, the study was geographically limited to selected SMBs in Ondo State and the findings were not statistically generalizable to all Nigerian SMBs. The results provided useful insights into resilience and sustainability challenges that may be relevant to SMBs operating in similar economic and institutional contexts across Nigeria. Therefore, the study recommends strengthened financial management, business diversification, cost efficiency, innovation, strategic partnerships, risk-management practices, and targeted institutional support to enhance SMB resilience and sustainable growth in Nigeria

Dimensions

REFERENCES

Ates, A. & Bititci, U. (2011). Change process: a key enabler for building resilient SMEs. International Journal of Production Research, 49 (18),5601-5618. https://doi.org/10.1080/00207543.2011.563825

Atkinson, A. A., Waterhouse, J. H., & Wells, R. B. (1997). A Stakeholder Approach to Strategic Performance Measurement. Sloan Management Review, 38(3), 25-37.

Aven, T. (2016). Risk Assessment and Risk Management: Review of Recent Advances on Their Foundation. European Journal of Operational Research, 253(1), 1-13. https://doi.org/10.1016/j.ejor.2015.12.023

Ayodeji, O.T., Akinlabi, H. B., Makinde, G. O. (2023). Disruptive Technology Components and the Return on Investment of Selected Manufacturing SMEs in Lagos and Ogun States, South-West, Nigeria. IRJEMS International Research Journal of Economics and Management Studies. 2(2), 387-396. https://doi:10.56472/25835238/IRJEMS-V2I2P142

Bansal, P., & Roth, K. (2000). Why Companies Go Green: A Model of Ecological Responsiveness. Academy of Management Journal, 43(4), 717-736. https://doi.org/10.2307/1556363

Bansal, P., & Song, H.-C. (2017). Similar But Not the Same: Differentiating Corporate Sustainability from Corporate Responsibility. Academy of Management Annals, 11(1), 105-149. DOI: 10.5465/annals.2015.0095

Bartik, A. W., Bertrand, M., Cullen, Z., Glaeser, E. L., Luca, M., & Stanton, C. (2020). The impact of COVID-19 on small business outcomes and expectations. Proceedings of the National Academy of Sciences of the United States of America, 117(30), 17656–17666. https://doi.org/10.1073/pnas.2006991117

Bresciani, S., Ferraris, A., & Del Giudice, M. (2018). The management of organizational ambidexterity through alliances in a new context of analysis: Internet of Things (IoT) smart city projects. Technological Forecasting and Social Change, 136, 331-338. https://doi.org/10.1016/j.techfore.2017.04.022

Brouder, A., Kiraly, F., Smith, M., & Woolliams, R. (2020). Crowdfunding and alternative finance: Strategies for resilience in the small business sector. In Small Business Resilience: Leveraging Innovation and Adaptation (pp. 93–109). London: Palgrave Macmillan.

Burt, R. S. (2000). The Network Structure of Social Capital. In Research in Organizational Behavior (Vol. 22, pp. 345-423). Elsevier. doi:10.1016/S0191-3085(00)22009-1

Carroll, A. B. (1991). The Pyramid of Corporate Social Responsibility: Toward the Moral Management of Organizational Stakeholders. Business Horizons, 34(4), 39-48. https://doi.org/10.1016/0007-6813(91)90005-G

Chapman, C., & Ward, S. (2011). Project Risk Management: Processes, Techniques, and Insights (3rd ed.). Wiley.

Conz, E., & Magnani, G. (2020). A dynamic perspective on the resilience of firms: A systematic literature review and a framework for future research. European Management Journal, 38(3), 400–412. https://doi.org/10.1016/j.emj.2019.12.004.

Cowling, M., Brown, R., & Rocha, A. (2020). Did you save some cash for a rainy COVID Day? The crisis and SMEs. International Small Business Journal, 38(7), 593–604.

Denyer, D. (2017). Organizational resilience: A summary of academic evidence, business insights, and new thinking. In Resilience: A Holistic Approach for Improving Organizational Sustainability, 3–21. London: BSI and Cranfield School of Management.

Doern, R., Williams, N., & Vorley, T. (2019). Special issue on entrepreneurship and crisis management: The experiences of small businesses during the economic downturn. International Small Business Journal, 37(5), 493–503.

Domi, S., Keco, R., Capelleras, J. L., & Mehmeti, G. (2019). Effects of innovativeness and innovation behavior on tourism SMEs performance: The case of Albania. Economics & sociology, 12(3), 67-85.

Domi, S. (2020). Organizational resilience: A capability-based conceptualization. Business Research, 13(1), 215–246. https://doi.org/10.1007/s40685-019-0085-7.

Eggers, F. (2020). Masters of disasters? Challenges and opportunities for SMEs in times of crisis. Journal of Business Research, 116, 199-208. https://doi.org/10.1016/j.jbusres.2020.05.025.

Elkington, J. (2020). The End of Growth: A New Paradigm for a Sustainable Future. Routledge.

Epstein, M. J., & Buhovac, A. R. (2014). Making sustainability work: Best practices in managing and measuring corporate social, environmental, and economic impacts (2nd ed.). Greenleaf Publishing.

Epstein, M. J., & Roy, M.-J. (2001). Sustainability in Action: Identifying and Measuring the Key Performance Drivers. Long Range Planning, 34(5), 585-604.

Esty, D. C., & Winston, A. S. (2006). Green to Gold: How Smart Companies Use Environmental Strategy to Innovate, Create Value, and Build Competitive Advantage. Yale University Press.

Faulkner, D., & De Rond, M. (2000). Strategic Alliances and Network Theory. In The Oxford Handbook of Strategy (Vol. 1, pp. 199-220). Oxford University Press. ISBN: 9780199241125

Fazli, H.; Farooq, S.; Yang, C.; Wæhrens, B.V. (2023). Proactive and Reactive Approaches towards Sustainable Practices in Manufacturing Companies: Emerging Economies Perspective. Sustainability 15, 12796. https://doi.org/10.3390/ su151712796

Freeman, R. E., & Auster, E. R. (2011). Values, Authenticity, and Responsible Leadership. Journal of Business Ethics, 98(S1), 15-23. DOI: 10.1007/s10551-011-1022-7

Gbandi, E. C., & Amissah, G. (2014). Financing options for small and medium enterprises (SMEs) in Nigeria. European Scientific Journal, 10(1), 327-340.

Gupta, A. K., & Govindarajan, V. (2000). Managing Global Expansion: A Conceptual Framework. Business Horizons, 43(2), 45-54. DOI: 10.1016/S0007-6813(00)87382-6

Hart, S. L., & Dowell, G. (2011). Invited Editorial: A Natural-Resource-Based View of the Firm: Fifteen Years After. Journal of Management, 37(5), 1464-1479. https://doi.org/10.1177/0149206310390219

Hart, S. L., & Milstein, M. B. (2003). Creating sustainable value. Academy of Management Executive, 17(2), 56-67.

Heifetz, R. A., & Laurie, D. L. (1997). The Work of Leadership. Harvard Business Review, 75(1), 124-134.

Herbane, B. (2019). Rethinking organizational resilience and strategic renewal in SMEs. Entrepreneurship and Regional Development, 31(5–6), 476–495. https://doi.org/10.1080/08985626.2018.1541594.

Herbane, B. (2019). Rethinking organizational resilience and the role of risk management: The case of small and medium-sized enterprises. International Journal of Risk Assessment and Management, 22(2/3), 118–129.

Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2017). Strategic management: Competitiveness and globalization (12th ed.). Cengage Learning.

Huggins, R., & Williams, N. (2011). Entrepreneurship and Regional Competitiveness: The Role and Progression of Policy. Entrepreneurship & Regional Development, 23(9-10), 907-932.

International Organization for Standardization. (2018). ISO 31000:2018 risk management—Guidelines. ISO.

ISO 31000. (2018). Risk Management – Guidelines. International Organization for Standardization.

Kump, B., Engelmann, A., Kessler, A., & Schweiger, C. (2019). Toward a dynamic capabilities scale: Measuring organizational sensing, seizing, and transforming capacities. Industrial and Corporate Change, 28(5), 1149–1172.

Matarazzo, M., Penco, L., Profumo, G., & Quaglia, R. (2021). Digital transformation and customer value creation in Made in Italy SMEs: A dynamic capabilities perspective. Journal of Business Research, 123, 642–656. https://doi.org/10.1016/j.jbusres.2020.10.033.

McWilliams, A., & Siegel, D. (2001). Corporate Social Responsibility: A Theory of the Firm Perspective. Academy of Management Review, 26(1), 117-127. DOI: 10.5465/amr.2001.4011987

Nidumolu, R., Prahalad, C. K., & Rangaswami, M. R. (2009). Why sustainability is now the key driver of innovation. Harvard Business Review, 87(9), 56-64.

Northouse, P. G. (2021). Leadership: Theory and practice (9th ed.). Sage Publications.

OECD. (2020). SME and entrepreneurship outlook 2021. OECD Publishing. https://doi.org/10.1787

Pal, R., Torstensson, H., & Mattila, H. (2014). Antecedents of organizational resilience in economic crises: An empirical study of Swedish textile and clothing SMEs. International Journal of Production Economics, 147(B), 410-428. https://doi.org/10.1016/j.ijpe.2013.02.031.

Park, S. H., & Ungson, G. R. (1997). The Effect of National Culture, Organizational Complementarity, and Economic Development on Organizational Performance. Journal of International Business Studies, 28(3), 605-624. doi: 10.1057/palgrave.jibs.8490070

Porter, M. E., & Kramer, M. R. (2019). Creating shared value: How to reinvent capitalism and unleash a wave of innovation and growth. Harvard Business Review Press.

Porter, M. E., & van der Linde, C. (1995). Green and competitive: Ending the stalemate. Harvard Business Review, 73(5), 120-134. https://hbr.org/1995/09/green-and-competitive-ending-the-stalemate

Powell, W. W., Koput, K. W., & Smith-Doerr, L. (1996). Interorganizational Collaboration and the Locus of Innovation: Networks of Learning in Biotechnology. Administrative Science Quarterly, 41(1), 116-145. doi:10.2307/2393988

Revell, A., Stokes, D., & Chen, H. (2010). Small business and the environment: Turning over a new leaf? Business Strategy and the Environment, Wiley Blackwell, 19(5), 273-288. https://doi.org/10.1002/bse.628

Schaltegger, S., & Wagner, M. (2011). Sustainable entrepreneurship and sustainability innovation: Categories and interactions. Business Strategy and the Environment, 20(4), 222-237. https://doi.org/10.1002/bse.682

Smith, N. (2019). Managing Regulatory Risks: A Practical Approach. Journal of Risk Management, 21(3), 142-155. https://doi.org/10.1057/s41283-019-00054-2

Sullivan-Taylor, B., & Branicki, L. (2011). Creating resilient SMEs: Why one size might not fit all. International Journal of Production Research, 49(18), 5565–5579. https://doi.org/10.1080/00207543.2011.563837.

Tavani, S., Keramidas, K., & Dweck, C. (2021). Digital resilience: The role of technology in building SME resilience during crisis. In Digital Transformation for Business Resilience, 69–91.

Teece, D. J. (2010). Business models, business strategy, and innovation. Long Range Planning, 43(2-3), 172-194. https://doi.org/10.1016/j.lrp.2009.07.003

Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic Management Journal, 18(7), 509–533. https://doi.org/10.1002/(SICI)1097-0266(199708)18:7<509::AID-SMJ882>3.0.CO;2-Z

Yukl, G. (2010). Leadership in Organizations (7th ed.). Pearson Education.

RESILIENCE STRATEGIES AND SUSTAINABILITY OF SMALL BUSINESSES: A CONVERGENCE APPROACH

Authors

Keywords:

Abstract

REFERENCES

Published

How to Cite

Issue

Section

How to Cite

Latest publications

Information

Make a Submission

Browse