journal article Mar 10, 2021

COVID‐19 crisis andSMEsresponses: The role of digital transformation

Knowledge and Process Management Vol. 28 No. 2 pp. 117-133 · Wiley
Abstract
In addition to causing dramatic damage to people's health, the coronavirus has affected also the financial health of companies worldwide. Among them, SMEs (small and medium‐sized enterprises) tend to be more vulnerable. Characteristics such as scarcity of financial resources and lack of specialized knowledge make their situation even harder. This pandemic has resulted in increased digital transformation, changes in customer behavior and the managerial and technological knowledge gap to address them. Therefore, this article discusses the general weaknesses, strengths, challenges and opportunities for SMEs to face this pandemic, and how the field of knowledge management (KM) can help. Based on the concepts of organizational resilience, we drafted a conceptual model to illustrate how their first responses were and how they could become more adapted. First, we conducted a literature search to investigate how SMEs responded to this scenario. We found responses to the financial impacts in the form of mass layoffs, temporary and permanent closures, bootstrapping of digitalization and strategic alliances. In the discussions section, we raise some key questions to demonstrate how knowledge can improve the role of digital transformation. We approach how a KM strategy could start from organizational resilience concepts to assist SMEs to seize digital transformation opportunities. As practical implications, our research raises awareness of digital transformation's role as a set of tools to adapt during and after the pandemic, along with resilience engineering and knowledge management principles. Future researchers can use this report as a conceptual guide to start their own response and adaptation plans.
Topics

No keywords indexed for this article. Browse by subject →

References
101
[1]
Do Senado A.(2020a).Government releases R $ 20 billion for credit to small and medium‐sized companies. Retrieved fromhttps://www12.senado.leg.br/noticias/materias/2020/06/05/governo-libera-r-20-bilhoes-para-credito-a-pequenas-e-medias-empresas
[2]
Do Senado A.(2020b).MP amending labor rules in pandemic can now be voted by the Senate. Retrieved fromhttps://www12.senado.leg.br/noticias/materias/2020/06/18/mp-que-altera-regras-trabalhistas-na-pandemia-ja-pode-ser-votada-pelo-senado
[3]
Arkan Ç.(2016).Digital transformation: Seven steps to success. [White Report] Microsoft. Retrieved fromhttps://news.microsoft.com/uploads/2017/02/Digital-transformation-seven-steps-to-success-by-Caglayan-Arkan.pdf
[4]
Baig A. Hall B. Jenkins P. Lamarre E. &McCarthy B. (2020).The COVID‐19 recovery will be digital: A plan for the first 90 days. [White Report]. McKinsey. Retrieved fromhttps://www.mckinsey.com/business-functions/mckinsey-digital/our-insights/the-covid-19-recovery-will-be-digital-a-plan-for-the-first-90-days
[5]
What Is Resilience and How Can It Be Nurtured? A Systematic Review of Empirical Literature on Organizational Resilience

Edwine Barasa, Rahab Mbau, Lucy Gilson

International Journal of Health Policy and Managem... 10.15171/ijhpm.2018.06
[6]
Barann B. Hermann A. Cordes A. K. Chasin F. &Becker J.(2019).Supporting digital transformation in small and medium‐sized enterprises: A procedure model involving publicly funded support units. In Proceedings of the 52nd Hawaii International Conference on System Sciences. 10.24251/hicss.2019.598
[7]
Bartik A. W. Bertrand M. Cullen Z. B. Glaeser E. L. Luca M. &Stanton C. T.(2020).How are small businesses adjusting to covid‐19? Early evidence from a survey (No. w26989). National Bureau of Economic Research Inc. Retrieved fromhttps://www.nber.org/papers/w26989.pdf 10.3386/w26989
[8]
Beley S. D. "The role of information technology in small and medium sized business" International Journal of Scientific and Research Publications (2013)
[9]
Berman S. J. &Bell R.(2011).Digital transformation: Creating new business models where digital meets physical. [White Report] IBM Institute for Business Value 1‐17. Retrieved fromhttps://www.ibm.com/downloads/cas/KWRV8QK6
[10]
Bianchini M. (2019).OECD digital for SMEs global initiative. Retrieved fromhttps://www.oecd.org/going-digital/sme/resources/D4SME-Brochure.pdf/
[13]
Brazilian Micro and Small Business Support Service—SEBRAE. (2016).Survival of Companies in Brazil. [White Report]. Retrieved fromhttps://datasebrae.com.br/documentos2/pesquisas/Sobrevivencia%20das%20Empresas%20no%20Brasil/Sobrevivencia%20de%20Empresas%20no%20Brasil%202016%20-%20FINAL.pdf
[15]
Brussevich M. Dabla‐Norris E. &Khalid S.(2020).Who will bear the brunt of lockdown policies? Evidence from Tele‐workability Measures Across Countries. Retrieved fromhttps://www.imf.org/en/Publications/WP/Issues/2020/06/12/Who-will-Bear-the-Brunt-of-Lockdown-Policies-Evidence-from-Tele-workability-Measures-Across-49479 10.2139/ssrn.3652506
[18]
Carvalho M. Bonzo M. &Zenaide V. (2020).Coronavirus: The world will never be the same. [White Report]. Google Integrated Analytical Team. Retrieved fromhttps://www.sincovaga.com.br/wp-content/uploads/2020/05/1_5017503098675921079.pdf
[25]
Coordination for the Improvement of Higher Education Personnel—CAPES. (2014).Capes provides the largest scientific database in the world. Retrieved fromhttp://www.capes.gov.br/36-noticias/1775
[28]
Cunningham A.C. "Treatment of COVID‐19: old tricks for new challenges" Crit Care (2020)
[29]
Dekker S. "Resilience engineering: New directions for measuring and maintaining safety in complex systems" Lund University School of Aviation (2008)
[30]
Digital Innovation and Strategic Transformation

Haluk Demirkan, James C. Spohrer, Jeffrey J. Welser

IT Professional 10.1109/mitp.2016.115
[32]
Digital Results Endeavor & Small Companies Big Business. (2020).SMEs overview: The impacts of Covid‐19 [White Paper]. Retrieved fromhttps://www.rdstation.com/resources/ebooks/panorama-pmes-os-impactos-da-covid-19-e-os-passos-para-a-retomada/?external=1&_ga=2.260666376.425361592.1592494224-942692104.1592494224
[34]
Masters of disasters? Challenges and opportunities for SMEs in times of crisis

Fabian Eggers

Journal of Business Research 10.1016/j.jbusres.2020.05.025
[35]
Digital Transformation

Christof Ebert, Carlos Henrique C. Duarte

IEEE Software 10.1109/ms.2018.2801537
[36]
European Investment Bank. (2019).The digitalisation of small and medium‐sized enterprises in Portugal: Models for financing digital projects [White Report]. Retrieved fromhttps://www.eib.org/en/publications/the-digitalisation-of-smes-in-portugal-summary-report
[37]
Fairlie R. W. &Fossen F. M.(2018).Opportunity versus necessity entrepreneurship: Two components of business creation. Retrieved fromhttps://papers.ssrn.com/sol3/papers.cfm?abstract_id=3140340 10.2139/ssrn.3169864
[38]
Fraga B. D.(2019).Framework for analysis of critical knowledge to organizational resilience capacities. (Doctoral dissertation Post‐Graduate Program in Engineering and Knowledge Management Federal University of Santa Catarina—PPGEGC). Retrieved fromhttp://btd.egc.ufsc.br/?p=2776
[40]
Garengo P. "Performance measurement systems in SMEs: A review for a research agenda" Wiley International Journal of Management Reviews (2005) 10.1111/j.1468-2370.2005.00105.x
[41]
Gere J. (2009)
[42]
Globaldata. (2020).Coronavirus (COVID‐19) executive briefing. Retrieved fromhttps://globaldata.com/covid-19/
[44]
The species Severe acute respiratory syndrome-related coronavirus: classifying 2019-nCoV and naming it SARS-CoV-2

Alexander E. Gorbalenya, Susan C. Baker, Ralph S. Baric et al.

Nature Microbiology 10.1038/s41564-020-0695-z
[47]
Gorender J. "Globalization, technology and labor relations" Advanced Studies (1997)
[48]
Hermann M. Pentek T. &Otto B.(2016).Design principles for industrie 4.0 scenarios. In 2016 49th Hawaii international conference on system sciences (HICSS) (pp. 3928–3937). IEEE. 10.1109/hicss.2016.488
[49]
Holling C. S. (2003)
[50]
Hollnagel E. (2010).How resilient is your organisation? An introduction to the resilience analysis grid (RAG). Retrieved fromhttps://erikhollnagel.com/onewebmedia/RAG%20Outline%20V2.pdf

Showing 50 of 101 references

Metrics
337
Citations
101
References
Details
Published
Mar 10, 2021
Vol/Issue
28(2)
Pages
117-133
License
View
Cite This Article
Vinícius Barreto Klein, José Leomar Todesco (2021). COVID‐19 crisis andSMEsresponses: The role of digital transformation. Knowledge and Process Management, 28(2), 117-133. https://doi.org/10.1002/kpm.1660