Knowledge integration for resilience among multinational SMEs amid the COVID-19: from the view of global digital platforms

Abstract

Purpose Multinational small-to-medium-sized enterprises (SMEs) are increasingly participating in cross-border digital platforms – especially amid the COVID-19 pandemic. Accordingly, knowledge integration (KI) has become more and more important. In fact, it has been deemed by many as the key to organizational resilience. Given this burgeoning phenomenon, this study aims to explore a path for improving the resilience of multinational SMEs. Through this process, this study also finds a relationship between the KI processes associated with adopting global digital platforms and the resiliency of local–global businesses. Hence, in part, this paper also explores the effectiveness of all these mechanisms. Design/methodology/approach This study used the stepwise regression method in Stata 16.0 to analyze the direct effects of both horizontal and vertical KI processes on the resilience of local–global businesses. Additionally, t-tests were also used to compare the differences in coefficients between the mechanisms. The sample analyzed comprised data on multinational manufacturing SMEs in the Yangtze River Delta region of China who are using global digital platforms. Findings The KI processes of these firms, both horizontal and vertical, positively correlate to resilience. Horizontal KI processes more efficiently increase the resilience of global businesses, whereas vertical processes more efficiently increase the resilience of local businesses. Originality/value First, this study provides insights into how multinational SMEs can improve their resilience in a crisis. In addition to adding to the knowledge of KI processes, this expands the KM literature on pandemics. Second, by creating two KI processes based on global digital platforms and discussing their influence on resilience, this research deepens the understanding of affordance in the KM literature. Third, focusing on the KI research stream, the results shed light on how KI processes might occur and how firms develop their KI processes.

Digital technologies and knowledge processes: new emerging strategies in international business. A systematic literature review

“…Global digital platforms are also studied by Guo et al (2023) as enablers of different KI processes that unlock strategic opportunities in times of crisis, such as the COVID-19 pandemic. In these contexts, as stated by affordance theory (Nambisan, 2017), multinational SMEs may leverage global digital platforms to enact vertical and/or horizontal KI processes and enhance local adaptation strategy.…”

“…Digitalization and globally available digital platforms have opened up strategic opportunities for incumbents and new entrants by amplifying the market knowledge and the possibility to customize international marketing strategies in terms of: international market access and local adaptation (Bei and Gielens, 2020; Caputo et al , 2021; Eid et al , 2019; Guo et al , 2023; Krings et al , 2021; Troise et al , 2023); and servitization (Bıçakcıoglu-Peynirci and Morgan, 2023; Jovanovic and Morschett, 2021). …”

“…international market access and local adaptation (Bei and Gielens, 2020; Caputo et al , 2021; Eid et al , 2019; Guo et al , 2023; Krings et al , 2021; Troise et al , 2023); and…”

“…The following papers (Bei and Gielens, 2020; Caputo et al , 2021; Eid et al , 2019; Guo et al , 2023; Krings et al , 2021; Troise et al , 2023) describe the use of social media and digital platforms to manage relationships between incumbent firms and their international customers and to improve and customize further their marketing strategies and offerings, enhancing the access to international markets. For instance, Eid et al (2019) explore how SMEs in B2B markets can take advantage of social media in their export activities.…”

Guest editorial

“…Drawing on data from small- and medium-sized firms (SMEs) in China’s manufacturing sector, Guo et al (2022) illustrate the importance of establishing digital platforms to enable knowledge integration among firms’ stakeholders across borders for resilience from local and global adversities incurred by the COVID-19 pandemic. Their unique merit lies in the introduction of the affordance theory to rationalise two types of knowledge integration processes (i.e.…”