Surviving or thriving: The role of learning for the resilient performance of small firms

Abstract

Building on a longitudinal dataset of 245 small firms covering the period of the Global Financial Crisis, this study uses, in combination with fuzzy clustering, the N-State Classification and Ranking Belief Simplex (NCaRBS) technique. This technique, able to deal with ambiguous outcome variables, small datasets, incomplete data and relationships that have the potential to be non-linear, is used to explore the relationship between learning and the resilient performance of small firms. Our findings provide a fine-grained picture of the complex relationships between strategic, cognitive and behavioural learning mechanisms and three resilient performance clusterssustained performance, stability, and survivalwhich has implications for theory, as well as practice. By examining learning at the level of the individual owner-manager and also the organisation, we contribute to a better understanding of the role of specific learning mechanisms, a role that is still not well understood.

Exploration and exploitation in crisis environment: Implications for level and variability of firm performance

“…Changes in organizational performance, especially performance decline (Cameron, Sutton, & Whetten, 1988;Weitzel & Jonsson, 1989;Zammuto & Cameron, 1985), have an impact on managerial behaviors, particularly in the situation of economic adversity or external threat (Battisti et al, 2019;Chattopadhyay, Glick, & Huber, 2001;Shirokova, Ivvonen, & Gafforova, 2019;Shirokova, Osiyevskyy, Laskovaia, & MahdaviMazdeh, 2020). A well-developed literature on strategic adaptation suggests threat perception can be considered as a catalyst for a strategic response (e.g., Gilbert, 2005;Laskovaia, Marino, Shirokova, & Wales, 2019).…”

“…When the environment changes abruptly, firms need to adapt their behavior to the new circumstances. A country-wide or global economic crisis is a good example of a sudden environmental jolt that makes firms reconsider their strategic behavior to cope with the economic downturn (Archibugi, Filippetti, & Frenz, 2013;Battisti, Beynon, Pickernell, & Deakins, 2019;Doern, Williams, & Vorley, 2019;Kunc & Bhandari, 2011;Pollard & Hotho, 2006;Smallbone, Deakins, Battisti, & Kitching, 2012). Responding to an economic crisis, firms may employ two distinct approaches to organizational adaptation: exploration and exploitation (Gupta, Smith, & Shalley, 2006;March, 1991;Ngo, Bucic, Sinha, & Lu, 2019).…”

Crisis challenges of small firms in Macao during the COVID-19 pandemic

“…Research has shown that learning allows firms to cope during the crisis (Weick and Sutcliffe 2011 ). Battisti et al ( 2019 ) examine the performance of small firms in New Zealand after the 2008 global financial crisis to understand which specific learning mechanism explains the post-crisis resilience of small firms. They find that the owner–manager’s learning goal orientation contributes to long-term sustained performance, whereas practice-based and proximal learning only helps short-term survival.…”

“…Learning from the crisis is a recursive, emergent, and active process (Elliott and MacPherson 2010 ). Policymakers and practitioners develop personal coaching and mentoring programs through formal (Battisti et al 2019 ) or informal methods (Saunders et al 2014 ).…”

Organizational Learning and Corporate Social Responsibility Drivers of Performance in SMEs in Northwestern Mexico

“…Generally, SMEs can improve their learning systems and financial performance because they are closer to their employees, which makes it easier to capture, transfer and better apply the knowledge learned [50,61]. Therefore, organizational learning is visualized as a capacity that helps to achieve better organizational practices, such as the adoption of social responsibility, and an increase of financial performance in SMEs [62,63]. From the theoretical and empirical context, we developed the following hypothesis: Hypothesis 2 (H2).…”