Article: How do SMEs' strategies change under the impacts of a critical external shock? The case of Vietnamese SMEs under the COVID-19 pandemic Journal: International Journal of Entrepreneurship and Small Business (IJESB) 2024 Vol.52 No.3 pp.352 - 378 Abstract: The impacts of external shock caused by the coronavirus (COVID-19) pandemic force small and medium enterprises (SMEs) to change their strategy to survive and/or even grow. This study aims to explore how SMEs change their strategies under the impact of the pandemic. We used semi-structured in-depth interviews with owners/managers of SMEs in Vietnam immediately after the outbreak of the pandemic and the implementation of the social distancing policy to collect the data. A thematic analysis was carried out under the theoretical lens of the dynamic capability's theory and strategic responses to the crisis model. The findings revealed the crucial role of dynamic capabilities with SMEs' strategy changes during the acute social crisis. In particular, firms with innovative capability and agility capability employed innovative strategies to exploit opportunities from the uncertain market. Meanwhile, firms with less preparation for crisis management adopted a perseverance strategy, and the firms without those characteristics followed retrenchment strategies. Inderscience Publishers - linking academia, business and industry through research

Title: How do SMEs' strategies change under the impacts of a critical external shock? The case of Vietnamese SMEs under the COVID-19 pandemic

Authors: Long Hoang Le; An Hoang Kim Vo; Duong Tuan Nguyen; Giang Huong Duong

Addresses: School of International Business and Marketing, University of Economics Ho Chi Minh City, Ho Chi Minh City, Vietnam ' College of Management, National Sun Yat-sen University, Taiwan; Foreign Trade University, Ho Chi Minh City Campus, Vietnam ' College of Management, National Sun Yat-sen University, Taiwan; Foreign Trade University, Ho Chi Minh City Campus, Vietnam ' Faculty of Business Administration, Ho Chi Minh City Open University, Ho Chi Minh City, Vietnam

Abstract: The impacts of external shock caused by the coronavirus (COVID-19) pandemic force small and medium enterprises (SMEs) to change their strategy to survive and/or even grow. This study aims to explore how SMEs change their strategies under the impact of the pandemic. We used semi-structured in-depth interviews with owners/managers of SMEs in Vietnam immediately after the outbreak of the pandemic and the implementation of the social distancing policy to collect the data. A thematic analysis was carried out under the theoretical lens of the dynamic capability's theory and strategic responses to the crisis model. The findings revealed the crucial role of dynamic capabilities with SMEs' strategy changes during the acute social crisis. In particular, firms with innovative capability and agility capability employed innovative strategies to exploit opportunities from the uncertain market. Meanwhile, firms with less preparation for crisis management adopted a perseverance strategy, and the firms without those characteristics followed retrenchment strategies.

Keywords: COVID-19; dynamic capabilities theory; pandemic; SMEs; Vietnam.

DOI: 10.1504/IJESB.2024.138772

International Journal of Entrepreneurship and Small Business, 2024 Vol.52 No.3, pp.352 - 378

Received: 26 Sep 2021
Accepted: 14 Feb 2022
Published online: 31 May 2024 *

Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article

Title: How do SMEs' strategies change under the impacts of a critical external shock? The case of Vietnamese SMEs under the COVID-19 pandemic

Keep up-to-date