Resilience ability and small medium enterprise (SME) survival rate in the middle of business environmental fluctuation

Ahmad Syaiful Affa, Muh. Ghafur Wibowo, Izra Berakon

Abstract


PurposeThis study examines the effect of organizational resilience variables on the firm’s survival rate and the moderating role of environmental turbulence variables in the relations of organizational resilience and firm survival.

Method This study uses simple regression to test research hypotheses. Primary data in the form of questionnaires are obtained from Small and Medium Enterprises (SMEs) in Java.

ResultThe analysis shows that organizational resilience variables can improve the firm’s survival. However, this study did not find the moderating role of environmental turbulence in influencing the relationship between organizational resilience variables and firm survival.

ImplicationThis study can help scholars and practitioners to understand more of the mechanism of organizational resilience and its impact on survival on smaller firms.

Originality This study offer the empirical study of firm survival on small-medium enterprise setting in Indonesia.


Keywords


resilience, SME, firm survival, environmental fluctuation

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DOI: https://doi.org/10.21580/jiemb.2020.2.1.7109

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Journal of Islamic Economics Management and Business

Department of Master of Sharia Economics
Faculty of Islamic Economics and Business
Universitas Islam Negeri (UIN) Walisongo Semarang Indonesia

Creative Commons License
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.