research-article

Sustaining SME agility through knowledge coupling, business process digitization, and innovation during crisis

Authors:

Sayed Muhammad Fawad Sharif,

Mikiale Gebreslase GebremariamAuthors Info & Claims

Volume 71, Issue C

https://doi.org/10.1016/j.jengtecman.2024.101802

Published: 02 July 2024 Publication History

Abstract

SMEs faced a paradoxical state due to Covid-19. They must layoff to cover costs and doing so challenges their survival owing to loss of knowledgeable workforce. We empirically develop a strategy allowing SMEs to retain their innovation and agility besides downsizing. Analyses of 306 Chinese manufacturing SMEs indicate that innovation positively mediates between knowledge coupling (business process digitization) and market capitalizing agility (MCA) during downsizing. In no-downsizing sample knowledge coupling leads to innovation (MCA), also innovation leads to MCA; whereas, BPD does not contribute to innovation and MCA. This study is among the earliest empirical examinations to establish agility in Chinese SMEs through mediation of innovation and moderation of downsizing.

Highlights

•

Small and medium enterprises have exercised mass downsizing due to Covid-19, which has challenged their survival.

•

Knowledge coupling sustains market capitalizing agility through innovation performance irrespective of downsizing.

•

Role of business process digitization is crucial for downsizing strategy.

•

SMEs must seek external knowledge and digital infrastructure to live through pandemic type crisis.

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cover image Journal of Engineering and Technology Management

Journal of Engineering and Technology Management Volume 71, Issue C

Jan 2024

246 pages

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Elsevier B.V.

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Elsevier Science Publishers B. V.

Netherlands

Publication History

Published: 02 July 2024

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