Preparedness shapes tomorrow: crisis preparedness and strategies among SMEs amid external crises

• Published in: Entrepreneurship and regional development Vol. 36; no. 9-10; pp. 1363 - 1384
• Main Authors: Klyver, Kim, Nielsen, Suna Løwe
• Format: Journal Article
• Language: English
• Published: Abingdon Routledge 19-10-2024; Taylor & Francis Ltd
• Subjects: Corporate culture; COVID-19; crisis impact; crisis preparedness; crisis strategy; Cultural differences; Emergency preparedness; Entrepreneurship; external crisis; Longitudinal studies; Management of crises; Pandemics; Shelter in place; Small & medium sized enterprises-SME; SMEs; Strategic management; Denmark
• ISSN: 0898-5626; 1464-5114
• DOI: 10.1080/08985626.2024.2352448

Prior research on crisis management focuses on crisis strategies used by small- and medium-sized enterprises (SMEs), predominately without considering their initial state of preparedness - how these SMEs stepped into the crisis in the first place. This study examines the effects of financial, organizational and cultural crisis preparedness on the strategic choices SMEs make during crises, specifically whether they retrench, persevere, or innovate. Utilizing a unique longitudinal representative dataset of SMEs spanning from 2015 to 2020, we test hypotheses related to the first COVID-19-related lockdown in Denmark. Our findings contribute significantly to the literature by showing that crisis preparedness is critical to SME's strategic choices during crises. We demonstrate that the nature of SME's pre-crisis preparedness - across financial, organizational, and cultural dimensions - distinctly shape their during-crisis strategic approach.