Resilience Through Strategy: How Malaysian SMEs Navigate U.S. Tariff Shocks Using Resource-Based and Contingency Approaches

In an era of intensifying trade protectionism, the 2025 U.S. imposition of a 24% tariff on selected Malaysian exports significantly disrupted the strategic landscape for export-reliant small and medium-sized enterprises (SMEs). This study investigates the strategic responses of Malaysian SMEs to this external shock, employing a qualitative methodology grounded in the Resource-Based View (RBV) and Contingency Theory. Through in-depth interviews with 20 SME leaders across high-impact sectors such as electronics, palm oil, and textiles, the research reveals three dominant adaptive strategies: market diversification into ASEAN and MENA regions, operational restructuring, and the acceleration of digital export channels. The findings demonstrate that SMEs with superior internal capabilities, such as digital infrastructure, leadership foresight, and institutional support, were able to respond with agility and foresight. The study also highlights how strategic responses varied across sectors, depending on risk perception and organizational maturity. These insights enrich the strategic management literature by underscoring the role of internal resources and contextual fit in shaping SME resilience in turbulent trade environments. Practical implications are drawn for policymakers and support agencies to design more targeted interventions that enhance SME preparedness for future global trade disruptions.