Modeling Organizational Resilience in SMEs: A System Dynamics Approach

Resilience is challenging for small- and medium-sized enterprises (SMEs), as their structure hinders them from overcoming external disturbances. This article used control to model how these perspectives can lead SMEs to equilibrium. We adopted a systemic approach, which addresses organizational complexity via linear modeling. First, using social network analysis (SNA), we revised the understanding of organizational resilience in the SME literature, identified groups with similar components, and used this information to feed our model. Second, we developed a conceptual model via a causal loop diagram, and third, we simulated scenarios using system dynamics. Our results indicate that organizational resilience is associated with feedforward, buffering, and feedback controls as critical factors demanding continuous coordination between core operations and management mechanisms. A limitation regarding system dynamics is that it models a system’s behavior rather than predicting it statistically. Even though the focus of this work is on the organizational context and Mexican SMEs, the versatility of the systemic approach may allow for the application of these ideas in other sectors. Our results may help managers and academics rethink resilience by restructuring relationships in operational and strategic units, increasing their autonomy, strengthening strategic planning as well as feedback means. The revised studies used statistical modeling to evaluate factors that foster SMEs’ organizational resilience. The present article contributes to this area by framing the problem in terms of system dynamics methodology and evaluating the adopted scenario.