A study on critical internal drivers of organizational resilience: evidence from Oman SMEs

Ruksana Banu (), Gopalakrishnan Soundararajan, Mahmood Ali Al Wahaibi and Mohamed Salman
Additional contact information
Ruksana Banu: Muscat College
Gopalakrishnan Soundararajan: Muscat College
Mahmood Ali Al Wahaibi: Arab Open University
Mohamed Salman: The University of Auckland

Journal of Global Entrepreneurship Research, 2024, vol. 14, issue 1, 1-10

Abstract: Abstract Across the globe, SMEs (small and medium enterprises) play an essential role in the socio-economic development of the economy and support the creation of jobs; Oman is no exception. SMEs are often vulnerable to adverse changes predominantly due to limited resources. The recent pandemic has made SMEs realize and prioritize resilient aspects in certain circumstances and businesses. The main objective of this study is to examine the critical internal factors that influence organizational resilience in the context of SMEs. An empirical analysis of 125 data collected from participants involved in Oman SMEs examined the effects of three major internal drivers (human capital, social capital, and leadership) on organizational resilience based on the contingency approach. By employing Smart-PLS and SPSS software on the data, the cause-effect analysis between organizational resilience and internal factors was investigated. The findings showed a significant influence of leadership and social capital factors on organizational resilience in Oman SMEs, while the human capital factor had a less significant impact. Social capital is related to the relational and cognitive aspects of the leadership network, which stems from interpersonal relationships as a resilience aspect of enhancing resources. Moreover, leadership is a formal institutional factor that is essential in determining organizational resilience. The study results contribute to theoretical and practical aspects by demonstrating that mobilizing social capital should be considered first, followed by developing leadership skills to support SMEs in promoting their resilience. The research findings and recommendations will help enterprises, associated public SME authorities, and policymakers focus on the significant areas of leadership and social capital to be resilient and enhance businesses.

Keywords: SMEs; Oman; Organizational resilience; Leadership; Human capital; Social capital; Contingency approach (search for similar items in EconPapers)
JEL-codes: L26 M10 O53 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s40497-024-00416-1 Abstract (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:jglont:v:14:y:2024:i:1:d:10.1007_s40497-024-00416-1

Ordering information: This journal article can be ordered from
http://www.springer. ... urship/journal/40497

DOI: 10.1007/s40497-024-00416-1

Access Statistics for this article

Journal of Global Entrepreneurship Research is currently edited by Nezameddin Faghih

More articles in Journal of Global Entrepreneurship Research from Springer, UNESCO Chair in Entrepreneurship
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().