Double-Sided Perspective of Business Resilience: Leading SME Rationally and Irrationally During COVID-19

Abstract

Objective - This study aims to elaborate business resilience of small medium enterprises and to test the impact of rational and irrational antecedents of business resilience during COVID-19 crisis. Methodology/Technique - It is cross-sectional and causal study for testing five hypothesizes. Convenience approach was used as non-probabilistic sampling method. It involved 506 small medium enterprises in Jawa and Sumatera, the biggest islands in Indonesia. Collected data were structured with PLS based Structural Equation Modelling. Findings – The result explained that business resilience is influenced positively, directly, and significantly by business flexibility and workplace spirituality. Business flexibility is influenced by workplace spirituality, pro-social leadership, and alliance capability. Pro-social leadership of owners and/or managers influences implementation of health protocol and alliance capability. Novelty - This study has proved that business resilience has both sides of antecedents - in rational and irrational perspectives. Type of Paper: Empirical. JEL Classification: L26, L29. Keywords: Business Resilience, Small Medium Enterprise Reference to this paper should be made as follows: Saputra, N; Herlina, M.G. (2021). Double-Sided Perspective of Business Resilience: Leading SME Rationally and Irrationally During COVID-19, Journal of Management and Marketing Review, 6(2) 125 – 136. https://doi.org/10.35609/jmmr.2021.6.2(4)