From Challenge to Opportunity: Resilience Approaches of Swiss SMEs in Managing Unexpected Shocks

Topic

The topic of this Master Thesis is the resilience strategies of Swiss small and medium-sized enterprises (SMEs) in managing unexpected shocks. The research explores how digital transformation has introduced both opportunities and risks, and it focuses on the digital and organizational resilience of these SMEs. The study aims to understand how these enterprises prepare for, respond to, and recover from disruptive events through qualitative research, including semi-structured interviews with members of the Digital Impact Network (DIN).

Relevance

The relevance of this topic for practitioners lies in its focus on enhancing the resilience of small and medium-sized enterprises (SMEs), which are crucial to Swiss and global economies. SMEs represent a significant portion of employment and economic activity, making their ability to withstand and recover from disruptions vital. The rising interconnectedness of organizations through digital transformation and the scarcity of SMEs resources puts them at risk, especially in the phase of a crisis. An understanding of resilience strategies enables practitioners to develop more robust business continuity plans, improve crisis management capabilities, and ensure long-term sustainability in an increasingly digital and interconnected market.

Results

The study identifies five key aggregate dimensions of how Swiss SMEs deal with unexpected shocks. These are: formal preparation and organizational agility before the crisis, improvisation during the crisis, and formal processes and organizational strategy in the aftermath of a crisis. Formal preparation includes systematic risk assessments and emergency plans. Organizational agility is enhanced by flexible structures and supportive cultures. Improvisation relies on quick decision-making and resourcefulness during crises. Formal processes and long-term contracts are crucial for post-crisis recovery and risk mitigation. The findings underscore the significance of integrating proactive preparation with adaptive and strategic responses to guarantee resilience.

Implications for Practitioners

• Adopt agile organizational structures to enhance flexibility and quick decision-making.
• Foster a work environment that encourages extra-role behaviors and proactive actions from employees.
• Build strong external networks and partnerships to gain additional resources and support during crises.
• Implement formal risk assessments and emergency planning to prepare for potential shocks.
• Adjust organizational strategies and formal processes based on lessons learned from past crises.

Methods

The methodology of this Master Thesis involves a qualitative research approach, using semi-structured interviews to gather data from ten SMEs in the Digital Impact Network (DIN). The research design is exploratory, aiming to gain a deep understanding of resilience in Swiss SMEs. Data collection was conducted through interviews with founders, CEOs, and managers involved in digital transformation processes. The data analysis employed the Gioia method, which involved coding first-order concepts from interviews, refining them into second-order themes, and ultimately aggregating them into key dimensions. This approach allowed for a comprehensive examination of how SMEs prepare for, respond to, and recover from unexpected shocks.