Enhancing SME Resilience During COVID-19: A Systematic Review of Digital Capabilities, Relational Strengths, and Organizational Agility

Kheng-Swee Teoh; Jeffrey S.S. Cheah

doi:10.32535/jcda.v8i2.3894

Enhancing SME Resilience During COVID-19: A Systematic Review of Digital Capabilities, Relational Strengths, and Organizational Agility

Kheng-Swee Teoh, Jeffrey S.S. Cheah

Abstract

The COVID-19 pandemic has severely impacted small and medium-sized enterprises (SMEs), exposing limitations in their resources and adaptability. This study investigates how digital technology capability, relational capability, the quality of external expertise, and organizational agility influence the performance of Malaysian manufacturing SMEs during the pandemic. Anchored in the Resource-Based View (RBV) and Contingency Theory (CT), the study adopts a systematic literature review (SLR) method using SCOPUS-indexed journals. Through a rigorous filtering process, ten core empirical articles were selected to explore how internal and external capabilities interact with pandemic-induced disruptions. The findings reveal that digital and relational capabilities enhance organizational agility, which in turn positively influences SME performance. The study also introduces COVID-19 impact as a moderating factor and highlights the mediating role of agility in performance outcomes. These insights offer strategic guidance for SME leaders and policymakers to prioritize digital investments and collaborative networks. The research contributes to theory-building by integrating RBV and CT in crisis contexts and sets the stage for future empirical validation across diverse sectors and regions.

Keywords

Agility; COVID-19; Digital Technologies; Firm Performance; Malaysian MSMEs; Relational Capability; Resource-Based View

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DOI: https://doi.org/10.32535/jcda.v8i2.3894