Exploring the internal drivers of SMEs’ resilience: The case of Ho Chi Minh City SMEs in the context of Covid-19

Abstract

Small and Medium Enterprises (SMEs) share a majority and play an important role in the socio-economic development of national as well as regional economies in the world and Vietnam is not an exception. However, they are more vulnerable to adverse changes due to limited resources. The Covid-19 pandemic which started in the year 2020 has seriously challenged the SMEs operation. Their resilience becomes the first priority under this specific circumstance. This research was conducted to explore the factors affecting the resilience of SMEs in Ho Chi Minh City. By employing PLS-SEM on the data of 300 surveyed businesses, the effects of three key internal factors: leadership, human capital and social capital on SMEs resilience have been investigated. The findings reveal the significant impacts of social capital, leadership, and human capital on the SMEs resilience, especially in the context of Covid-19. The study results highlight that social capital mobilization should be firstly prioritized for SMEs to promote their resilience.