Resilience of SMEs in Facing Economic Crises: Business Model Adaptation, Product Diversification, and Resource Optimization
DOI:
https://doi.org/10.61100/adman.v3i1.260Keywords:
SME Resilience, Economic Crisis, Business Model Adaptation, Product Diversification, Resource Optimization, Digital InnovationAbstract
SMEs play a strategic role in the economy but are highly vulnerable to economic crises. This study aims to analyze SME resilience strategies in navigating economic downturns through business model adaptation, product diversification, and resource optimization. Using a literature review approach with qualitative methods and descriptive analysis, data were collected from Google Scholar and other credible sources for the period 1957–2025. From the initial 50 articles identified, a rigorous selection process resulted in 34 relevant articles. The findings indicate that SMEs capable of adjusting their business models to market dynamics have a higher chance of survival. Product diversification has been proven effective in reducing business risks, while resource optimization enhances operational efficiency and competitiveness. The theories of Organizational Resilience, Business Model Canvas, and Resource-Based View serve as the foundation for understanding the factors influencing SME resilience. Case studies demonstrate that Indonesian SMEs adopting digital innovations and adaptive strategies perform better in times of crisis. This study provides implications for business practitioners, policymakers, and academics in designing more adaptive strategies to enhance SME sustainability.
References
A. M. A. Ausat and T. Peirisal, “Determinants of E-commerce Adoption on Business Performance : A Study of MSMEs in Malang City , Indonesia,” Journal On Optimizations Of Systems At Industries, vol. 20, no. 2, pp. 104–114, 2021, doi: 10.25077/josi.v20.n2.p104-114.2021.
A. M. A. Ausat and S. Suherlan, “Obstacles and Solutions of MSMEs in Electronic Commerce during Covid-19 Pandemic: Evidence from Indonesia,” BASKARA: Journal of Business and Entrepreneurship, vol. 4, no. 1, pp. 11–19, Oct. 2021, doi: 10.54268/BASKARA.4.1.11-19.
V. Canwat, “COVID-19-related supply chain disruptions: resilience and vulnerability of micro, small and medium enterprises,” Cogent Business & Management, vol. 11, no. 1, Dec. 2024, doi: 10.1080/23311975.2024.2315691.
A. M. A. Ausat, E. Siti Astuti, and Wilopo, “Analisis Faktor Yang Berpengaruh Pada Adopsi E-commerce Dan Dampaknya Bagi Kinerja UKM Di Kabupaten Subang,” Jurnal Teknologi Informasi dan Ilmu Komputer (JTIIK), vol. 9, no. 2, pp. 333–346, 2022, doi: 10.25126/jtiik.202295422.
J. Fisher Ke, J. Otto, and C. Han, “Customer-Country diversification and inventory efficiency: Comparative evidence from the manufacturing sector during the pre-pandemic and the COVID-19 pandemic periods,” J Bus Res, vol. 148, pp. 292–303, Sep. 2022, doi: 10.1016/j.jbusres.2022.04.066.
E. Peretz-Andersson, S. Tabares, P. Mikalef, and V. Parida, “Artificial intelligence implementation in manufacturing SMEs: A resource orchestration approach,” Int J Inf Manage, vol. 77, p. 102781, Aug. 2024, doi: 10.1016/j.ijinfomgt.2024.102781.
A. T. Nasser, “Competitiveness of Micro, Small and Medium Entrepreneurs during Economic Disruption,” JPAIR Multidisciplinary Research, vol. 49, no. 1, pp. 81–105, Jul. 2022, doi: 10.7719/jpair.v49i1.641.
A. Salsabila, T. N. Adiza, A. J. Irdianti, and D. Saraswati, “Strategy to Increase the Competitiveness of MSME Businesses in the Era of Digitalization for Rural Communities in the Medan Region of North Sumatra,” Jurnal Pemberdayaan Ekonomi dan Masyarakat, vol. 1, no. 3, p. 11, Jul. 2024, doi: 10.47134/jpem.v1i3.409.
I. W. E. Arsawan, N. K. ssy De Hariyanti, I. M. A. D. S. Atmaja, D. Suhartanto, and V. Koval, “Developing Organizational Agility in SMEs: An Investigation of Innovation’s Roles and Strategic Flexibility,” Journal of Open Innovation: Technology, Market, and Complexity, vol. 8, no. 3, p. 149, Sep. 2022, doi: 10.3390/joitmc8030149.
R. Papla, D. Yeltayeva, and D. Pak, “strategic agility or resilience: what should smes focus on during the crisis?,” InterConf, no. 18(95), pp. 82–91, Jan. 2022, doi: 10.51582/interconf.19-20.01.2022.007.
M. K. Sott and M. S. Bender, “The Role of Adaptive Leadership in Times of Crisis: A Systematic Review and Conceptual Framework,” Merits, vol. 5, no. 1, p. 2, Jan. 2025, doi: 10.3390/merits5010002.
N. A. Adam and G. Alarifi, “Innovation practices for survival of small and medium enterprises (SMEs) in the COVID-19 times: the role of external support,” J Innov Entrep, vol. 10, no. 1, pp. 1–22, May 2021, doi: 10.1186/s13731-021-00156-6.
K. Burnard and R. Bhamra, “Organisational resilience: development of a conceptual framework for organisational responses,” Int J Prod Res, vol. 49, no. 18, pp. 5581–5599, Sep. 2011, doi: 10.1080/00207543.2011.563827.
R. Grewal and P. Tansuhaj, “Building Organizational Capabilities for Managing Economic Crisis: The Role of Market Orientation and Strategic Flexibility,” J Mark, vol. 65, no. 2, pp. 67–80, 2001.
H. Chesbrough, “Business Model Innovation: Opportunities and Barriers,” Long Range Plann, vol. 43, no. 2–3, pp. 354–363, Apr. 2010, doi: 10.1016/j.lrp.2009.07.010.
I. Ansof, “Strategies for Diversification,” Harv Bus Rev, pp. 113–124, 1957.
J. Barney, “Firm Resources and Sustained Competitive Advantage,” J Manage, vol. 17, no. 1, pp. 99–120, Mar. 1991, doi: 10.1177/014920639101700108.
G. Westerman, D. Bonnet, and A. McAfee, “The Nine Elements of Digital Transformation,” MIT Sloan Management Review; Cambridge, vol. 55, no. 3, pp. 1–6, 2014.
Redaksi, “Batik Khas Solo Kembali Bangkit Lewat Bisnis Online,” porospro.com.
Alexander Osterwalder and Yves Pigneur, Business Model Generation: A Handbook for Visionaries, Game Changers, and Challengers. New Jersey: Wiley, 2010.
Binus University, “Cara resto Sambal Bakar Indonesia dalam menaikkan penjualan makanan,” student-activity.binus.ac.id.
B. Henderson, The Product Portfolio. Boston: The Boston Consulting Group, 1970.
Toko Kopi Tuku, “Toko Kopi Tuku, Kopi Favorit Para Tetangga,” ubrukopi.com.
Redaksi Ekorantt, “Mengenal Tati Nahing, Kelompok Tenun Ikat Asal Desa Lepolima, Sikka,” ekorantt.com.
Indriani, “Penenun kain dari NTT lakukan inovasi terbuka,” kupang.antaranews.com.
Lukas Rudolf Lado, “Cara Sanggar Akasia Hewokloang Merawat Tenun Ikat Alami,” ekorantt.com.
W. M. Cohen and D. A. Levinthal, “Absorptive Capacity: A New Perspective on Learning and Innovation,” Adm Sci Q, vol. 35, no. 1, p. 128, Mar. 1990, doi: 10.2307/2393553.
Bekti Utomo, “The Effect of Financial Support, Creativity, and Regulatory Environment on the Growth of MSMEs,” International Journal of Integrative Sciences, vol. 3, no. 9, pp. 1007–1018, Sep. 2024, doi: 10.55927/ijis.v3i9.11643.
J. L. Glover, D. Champion, K. J. Daniels, and A. J. D. Dainty, “An Institutional Theory perspective on sustainable practices across the dairy supply chain,” Int J Prod Econ, vol. 152, pp. 102–111, Jun. 2014, doi: 10.1016/j.ijpe.2013.12.027.
Agung One, “UMKM CLASS SERIES #4 Pelatihan Promosi dan Pemasaran UMKM melalui Platform e Commerce,” ugm.ac.id.
Her5wan, “Pelatihan digital marketing bagi pelaku UKM menuju bisnis online,” bangunjiwo-bantul.desa.id.
Ahmad, “Pelatihan Manejemen UMKM dan Pemasaran Online,” https://prenggankel.jogjakota.go.id/.
Rosabeth Moss Kanter, “Collaborative Advantage: the Art of Alliances,” Harv Bus Rev, vol. 74, no. 4, pp. 96–108, 1994.
Munajat et al., EKONOMI KREATIF Suatu Konsep Ekonomi Baru, 1st ed., vol. 1. Purbalingga: Eureka Media Aksara, 2022.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2025 Journal of Contemporary Administration and Management (ADMAN)
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
