The Covid-19 crisis and SMEs resilience through Digital Business Model adaptation : An empirical study of international small and medium-sized manufacturing firms from Sweden

Abstract: Research from the international business field have demonstrated that firms operating both in domestic and foreign markets have a greater exposition to market turbulences and disturbances. The literature has established that dynamism, flexibility and agility are crucial capabilities. In fact, firms displaying the previously listed capabilities have a greater chance to survive to turbulent and disturbing market events. Given the current Covid-19 crisis impacting the global market, this paper is further justified by the need for diverse and deeper research on how firms develop so-called “resilience” to survive to disruptive events such as the current pandemic. Furthermore, Business Model Innovation is proposed by the literature as a way to build that organizational resilience. Especially, the adaptation of the Business Model to a more Digital Business Model. The literature presented Digital Business Model as a way for firms to build flexibility and agility capabilities. More specifically, the study aims to analyze how Swedish international manufacturing SMEs develop organizational resilience. Thanks to the four semistructured interviews carried out with four top manager part of Swedish international manufacturing SMEs, this qualitative study has been able to answer the given research question: “How can international manufacturing SMEs develop resilience through adapting a digital business model in order to survive during disruptive market changes?” The primary and secondary data were collected and analyzed according to the constructed conceptual framework. In conclusion, it can be noticed that the findings, based on empirical data, are aligned with the literature and demonstrate that in order to navigate in those turbulent international market environments firms need have a flexible and agile organizational structure. Furthermore, those findings highlight that the implementation of a Digital Business Model enables firms to develop that flexibility and agility, therefore leading to organizational resilience. However, surprisingly, the data shows that if most of the firms did implement Digital Business Model, those Business Model Innovation are not permanent but rather temporary.