Firm ownership, strategic behavior and entrepreneurial resilience: an empirical study of Armenian SMEs

Purpose The purpose of this paper is to study the role of owner–managers in contributing to the growth and resilience of small and medium-sized enterprises (SMEs) through strategic choices that lead to digital adoption. Digitally advanced entrepreneurs foster technology and innovative business models and adopt agile strategies to grow and maintain their business models and customers. The authors examine how strategic alignment through adoption of digital technologies ultimately affects a firm’s ability to build resilience to withstand and recover from crisis situations. The study highlights the importance of the behaviors and characteristics of owner–managers that allow them to cope with unprecedented situations like COVID-19 and similar external shocks. Design/methodology/approach The authors used the results of an electronic survey conducted among small and medium Armenian companies. The final sample comprised 452 valid responses that were further analyzed. Findings The results demonstrate that the owner–managers’ strategic thinking and digitalization are not only a means to enhance resilience in times of turbulence, such as the COVID-19 pandemic, but also a proactive tool that allows SMEs to grow and earn a competitive advantage. Originality/value The authors contribute to research on SMEs, emphasizing the role of owner–manager characteristics that are pivotal during times of high uncertainty for firm survival and growth. Building on agency theory and through the dynamic capabilities’ framework, the authors enrich the current discourse on entrepreneurial research by drawing important insights into how owner–managers’ strategic choices may allow them to navigate competitive environments and display a greater degree of resilience.