Learning Organizational Culture and its Impact on Organizational Resilience in SMEs

Abstract

The emergence of COVID-19 pandemic have challenged the resilience of SMEs (Small Medium Enterprises) in Pakistan. SMEs can no longer rely on the traditional methods to ensure their survivability in turbulent environmental conditions. Building on the foundations of dynamic capabilities view, this study proposes that learning organizational culture provides the required supportive mechanisms, structures and processes needed for sustaining organizational resilience. The hypothesis is tested using data of 295 self-administered questionnaires from middle to top-level managers of SMEs in Pakistan. Empirical evidence from this study indicates that learning organizational culture positively influences the organizational resilience of SMEs. Additionally, this study also provide empirical support to a two-factor process model of organizational resilience. Findings of this study provides a step ahead in understanding of organizational resilience by shifting the theoretical lens from ‘resilience response’ to ‘resilience potential’ approach. In addition to examining the role of learning organizational culture in developing organizational resilience in SMEs, this study suggests that managerial interventions in SMEs should incorporate a sense of resiliency not only at operational level but also within its strategic orientation.