Speed of external technology transfer and SME resilience during crisis
Christopher Williams, Ana Colovic, Jacqueline Jing YouPurpose
Research on how quickly small and medium-sized enterprises (SMEs) source and integrate new technology during crises is scant, despite an assumption that speed is important for an SME's ability to cope. Rapid technology transfer may be subject to time compression diseconomies, where accelerating the process becomes less efficient. This study examines how the speed of technology transfer during a crisis impacts two components of SME resilience: response and recovery.
Design/methodology/approach
A questionnaire survey comprising established scales for speed of technology transfer, response and recovery was administered in France during the COVID-19 pandemic. The sample was made up of 229 SMEs operating in a variety of sectors and industries.
Findings
The effect of the speed of technology transfer on resilience depends on the similarity between the source and the SME, as reflected in (1) other firms vs. universities and (2) technology sources located in the same country as the SME vs. those located in other countries. Results reveal differentiated effects in terms of the relationship between speed of technology transfer and an SME's capability to respond vs. recover.
Research limitations/implications
Research into resilience of small firms needs to consider how they seek outside help in the form of new technology during a crisis. Researchers need to pay more attention to the speed at which this happens, as there are absorptive capacity constraints in small firms that can hinder the process of new technology adoption during a crisis.
Practical implications
SMEs should be prepared to use the speed of technology transfer during crises, drawing on relationships with firms and universities as technology providers differently, depending on resilience goals. SMEs should be aware that rapid technology transfer from sources in the same country may be more beneficial for resilience capabilities during a global crisis compared to rapid technology transfer from foreign sources.
Originality/value
This research is among the first to examine the effects of the speed of technology transfer on two components of resilience – response and recovery – with a focus on SMEs. It contributes by showing the differential impact of technology transfer speed from various sources on SME resilience.