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

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.