Title: Organisational resilience through crisis strategic planning: a study of Swedish textile SMEs in financial crises of 2007-2011
Authors: Rudrajeet Pal; Roy Andersson; Håkan Torstensson
Addresses: The Swedish School of Textiles, University of Borås, Bryggaregatan 17, SE – 501 90 Borås, Sweden; Department of Material Science, Tampere University of Technology, Fibre Materials Science, P.O. Box 589, FIN – 3310 Tampere, Finland ' School of Engineering, University of Borås, Allegatan 1, SE-50190, Borås, Sweden ' The Swedish School of Textiles, University of Borås, Bryggaregatan 17, SE – 501 90 Borås, Sweden
Abstract: Global financial crises of 2007-2011 have created tremendous impact on Swedish organisations, particularly small and medium-sized enterprises (SMEs). In such a context, study of organisational resilience, to survive and thrive, becomes increasingly significant. Key to economic resilience is upheld by crisis management (CM), business continuity planning (BCP) and growth perspectives. Thus crisis strategic planning (CSP) becomes fundamental in underpinning resilience. The study categorises resilient and less resilient SMEs in terms of their financial performance, and identifies what strategies differentiate them. Resilient firms showed better short-term CM through higher operational flexibility, while the less resilient firms lacked strategic readiness. Resilient firms showed more long-term strategies through BCP and growth strategies through market penetration, diversification and transformational initiatives. Multi-strategic initiatives help to develop CSP model, categorising firms along different resilience types, characterised by low and high degrees of planning and adaptation, respectively. Resilient Swedish SMEs mostly showed planned resilience in financial crises.
Keywords: organisational resilience; crisis strategic planning; CSP; economic growth; small and medium-sized enterprises; SMEs; business continuity planning; BCP; crisis management; emergency management; Sweden; textile industry; clothing industry; garment industry; apparel industry; financial performance; firm performance; operational flexibility; strategic readiness; market penetration; diversification; transformational initiatives.
International Journal of Decision Sciences, Risk and Management, 2012 Vol.4 No.3/4, pp.314 - 341
Received: 19 Sep 2012
Accepted: 20 Dec 2012
Published online: 19 Apr 2013 *