Fortune favours the digitally mature: the impact of digital maturity on the organisational resilience of SME retailers during COVID-19

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Abstract

Purpose

Organisational resilience and digital maturity both explain how some organisations are better able to cope with unexpected disruptions. However, research exploring the relationship between these two concepts, and their role in addressing exogenous shocks, remains sparse. This study first aimed to compare digitally mature SME retailers’ organisational resilience with that of digitally less mature SME retailers and then investigate further how their digital maturity impacted their response to the COVID-19 pandemic.

Design/methodology/approach

The authors adopt an explanatory two-phase mixed-method research design, with online surveys from 79 SME retailers in South Africa, followed by interviews.

Findings

Digitally mature SMEs exhibited higher levels of organisational resilience, specifically with respect to situational awareness, management of keystone vulnerabilities and adaptive capacity. The authors also demonstrate that digital leadership is a greater driver of organisational resilience than digital capabilities.

Practical implications

The authors suggest ways for SME retailers to develop their digital maturity, particularly their digital leadership, to increase their organisational resilience.

Originality/value

This paper makes a case for SME retailers to focus on building their digital maturity to better cope with and learn from unexpected events. In particular, digital maturity is positively associated with SME retailers’ innovation and creativity and their devolved and responsive decision-making.

Related collections

Most cited references 74

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Measurement Invariance Conventions and Reporting: The State of the Art and Future Directions for Psychological Research.

Diane Putnick, Marc H. Bornstein (2016)

Measurement invariance assesses the psychometric equivalence of a construct across groups or across time. Measurement noninvariance suggests that a construct has a different structure or meaning to different groups or on different measurement occasions in the same group, and so the construct cannot be meaningfully tested or construed across groups or across time. Hence, prior to testing mean differences across groups or measurement occasions (e.g., boys and girls, pretest and posttest), or differential relations of the construct across groups, it is essential to assess the invariance of the construct. Conventions and reporting on measurement invariance are still in flux, and researchers are often left with limited understanding and inconsistent advice. Measurement invariance is tested and established in different steps. This report surveys the state of measurement invariance testing and reporting, and details the results of a literature review of studies that tested invariance. Most tests of measurement invariance include configural, metric, and scalar steps; a residual invariance step is reported for fewer tests. Alternative fit indices (AFIs) are reported as model fit criteria for the vast majority of tests; χ(2) is reported as the single index in a minority of invariance tests. Reporting AFIs is associated with higher levels of achieved invariance. Partial invariance is reported for about one-third of tests. In general, sample size, number of groups compared, and model size are unrelated to the level of invariance achieved. Implications for the future of measurement invariance testing, reporting, and best practices are discussed.

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Effects of COVID-19 on Business and Research

Naveen Donthu, Anders Gustafsson (2020)

The COVID-19 outbreak is a sharp reminder that pandemics, like other rarely occurring catastrophes, have happened in the past and will continue to happen in the future. Even if we cannot prevent dangerous viruses from emerging, we should prepare to dampen their effects on society. The current outbreak has had severe economic consequences across the globe, and it does not look like any country will be unaffected. This not only has consequences for the economy; all of society is affected, which has led to dramatic changes in how businesses act and consumers behave. This special issue is a global effort to address some of the pandemic-related issues affecting society. In total, there are 12 papers that cover different industry sectors (e.g., tourism, retail, higher education), changes in consumer behavior and businesses, ethical issues, and aspects related to employees and leadership.