Leveraging Business Flexibility: Does It Impact on Business Resilience for Dealing with Covid-19 Crisis?

Abstract

The COVID 19 pandemic has resulted in SMEs experiencing an ongoing crisis. However, UKM tries to stay afloat and tries to avoid layoffs. This study is to measure the resilience of SMEs as SMEs which are considered the foundation of the Indonesian economy and to determine the factors used to survive this pandemic. This study involves 299 SMEs located in North Sumatra using quantitative and qualitative methodologies and will answer questions about (1) Can SMEs face the crisis due to the COVID 19 pandemic; (2) What factors cause SMEs to survive. Data analysis will be carried out using the Structural Equation Model and SmartPLS version 3. The results of this study will show a comprehensive diagnosis of the resilience of SME in Northern Sumatra and can show the relationship between business flexibility, collaborative capability, and pro-social behaviour