Innovation as recovery strategy for SMEs in emerging economies during the COVID-19 pandemic

Abstract

The quarantine and disruption of non-essential activities as measure to contain the COVID-19 pandemic has negatively affected all economies around the World. This has had a deeper impact on small and medium enterprises (SMEs) in emerging economies because they have very limited resources and vulnerable supply chain and business-to-business/business-to-clients relationships. In this context, it is expected that after the pandemic many of these enterprises will disappear as the "new normality" will require changes in business and infrastructure management. To reduce this risk, innovation is identified as a key aspect of business recovery in the ongoing and post-COVID-19 pandemic period. This work presents a multidisciplinary methodological approach to guide these enterprises to innovate their products for new markets and making a better use of their limited available resources. As an example of this approach, the research-supported development of a new product for a family-owned SME was performed in a zone with high COVID-19 risk. The results provide insight regarding innovation as a survival tool for SMEs during and after the COVID-19 contingency, and the use of digital resources is identified as the main facilitator for networking and research-based design of innovative products within the "social distance" context.

Keywords: COVID-19 economic crisis; Innovation; SMEs; Strategic planning.

Graphical abstract

Fig. 1

Integrated DMAIC methodology for SMEs.

Fig. 2

Integrated 6$\sigma$ application of methodology for sock manufacturing SME: analyze the SME's processes and identify problems.

Fig. 3

Integrated 6$\sigma$ application of methodology for sock manufacturing SME: formulate solutions for the identified problems.

Fig. 4

Integrated 6$\sigma$ application of methodology for sock manufacturing SME: important relationships and tools.