How Do Networking Capabilities Support SMEs in Surpassing the COVID-19 Crisis? Lessons Learned from Small Firms in a Developing Country

Abstract

The COVID-19 pandemic has imposed several difficulties for business. Small firms have been affected dramatically by reduced revenue and/or closing of activities. In this sense, the literature affirms that network capabilities can be an opportunity to develop collaborations and to access new resources, an important strategy to those firms in a crisis context. This paper analyzes how Brazilian SMEs used their networking capabilities to initiate, develop, and finish business relationships during the COVID-19 crisis and minimize financial problems through partnerships. To reach this goal, we conducted 20 interviews with owners and executives from 10 small and medium firms, during the pandemic time. We found that these companies are using their networking capabilities to overcome the difficulties imposed by the crisis, and we identified six main lessons learned that could be useful for those and other firms in order to minimize the crisis's negative impacts.