Business Resilience During the COVID-19 Pandemic: The Success Factors of Industrial MSMEs
Abstract
Purpose: To analyze the factors that influenced the business resilience of Micro, Small, and Medium-sized Enterprises (MSMEs) in Cali (Colombia) during the crisis produced by the COVID-19 pandemic.
Design/methodology: This study used inferential statistics with a quantitative approach. A structured survey was administered to a sample of 385 industrial MSMEs. A Pearson correlation matrix was constructed to analyze the relationship between the independent factors, and logit regression was implemented to identify their influence on business resilience. Therefore, the probability of occurrence of the dependent variable was based on each and every one of these variables.
Findings: This study demonstrated that financial, organizational, and operational factors are statistically significant, increasing the probability of resilient management by industrial MSMEs in the face of a crisis. In turn, the variables associated with human talent, market, and the external environment do not affect this resilience. Contrary to the theory, industrial MSMEs with more financial resources have a lower probability of resilience. However, desirable conditions in organizational and operational management increase this probability.
Conclusions: It can be concluded that companies that are prepared and trained in organizational, operational, and staff management are more resilient because they have skills to motivate and incentivize employees, manage resources, and redirect the firm and its vision. Likewise, they are able to adapt their manufacturing operations to the realities of their environment.
Originality: This study empirically analyzed the factors that influence business resilience in one of the sectors with the greatest impact on economic growth and job creation in Cali, i.e., industrial MSMEs, which gives readers an idea of their behavior in the face of said crisis.
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