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COVID ‐19 crisis and SMEs responses: The role of digital transformation
Author(s) -
Klein Vinícius Barreto,
Todesco José Leomar
Publication year - 2021
Publication title -
knowledge and process management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.341
H-Index - 44
eISSN - 1099-1441
pISSN - 1092-4604
DOI - 10.1002/kpm.1660
Subject(s) - resilience (materials science) , business , digital transformation , knowledge management , scarcity , psychological resilience , adaptation (eye) , covid-19 , pandemic , conceptual framework , marketing , public relations , process management , political science , computer science , economics , sociology , psychology , medicine , social science , physics , disease , pathology , neuroscience , infectious disease (medical specialty) , law , psychotherapist , thermodynamics , microeconomics
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.