Exploring learning capability on entrepreneurial resilience of emerging contractor firms

Abstract

Orientation: The resilience of small businesses such as emerging contractor firms (ECFs) has been negatively affected due to problems from the environment like the coronavirus disease 2019 (COVID-19) pandemic. It is imperative for firms to navigate through this economic downturn by deploying learning capabilities to surmount these problems and boost resilience.Research purpose: This study examines the influence of learning capability on the entrepreneurial resilience.Motivation for the study: To establish the role of learning capability on entrepreneurial resilience of ECFs.Research design, approach and method: Using a quantitative research approach and a cross-sectional survey design, a structured close-ended questionnaire was administered to 400 owners and managers of ECFs. The results of the study were analysed using Statistical Package for the Social Sciences (SPSS) version 23 and Smart PLS software 3. Descriptive percentage analysis, confirmatory factor analysis (CFA), multiple regression analysis, and structural equation modelling (SEM) were performed on the data set.Main findings: The results suggest that all forms of learning have significant positive effect on entrepreneurial resilience (Transformative learning B = 0.2207, p 0.001; exploitative learning β = 0.2580; p 0.001; explorative learning β = 0.5316; p 0.001).Practical/managerial implications: The implications emphasise the different choices that small resource constrained firms must take in identifying and investing in those learning capability dimensions which best predict long term resilience.Contribution/value-add: The study demonstrates the significance of firms’ investment in learning, especially explorative learning to increase knowledge.