Impact of Social Norms on Japanese Small Businesses’ Survival: Conflict Management Amid the COVID-19 Pandemic

Abstract

This study examines how governmental business restrictions and community social norms under the COVID-19 pandemic affected small businesses in terms of business continuity, suspension, and resumption. Through interviews with 27 small Japanese businesses, this study analyzes business continuity using the KJ Method (affinity diagram). The analysis reveals that the four conflicts associated with business continuity, suspension, and resumption can be organized into two polar tensions: compliance–compatibility decisions and business–value–compatibility decisions. Conflicts were as follows: cancellation of all (events and gatherings) versus business-as-usual (social norms within the community); government standards versus voluntary standards (response to government policies); compensation for sales loss versus extensive use for future growth (securing business funds); and mutual help versus new relationships (relationships with customers and suppliers). It showed that small businesses responded along the axis of not only protecting their company values but also adapting to social institutions and norms. Moreover, conflict management is an important source of resilience for small businesses, focusing on corporate culture in different societies.