Overcoming the Energy Crisis: Strategic Responses of Italian SMEs

Permacrisis is a term that captures the uncertainty of our era, marked by overlapping crises such as wars, pandemics, economic turmoil, and the looming threat of recession. In such volatile times, understanding how organizations adapt and thrive is critical, not just for survival but for future resilience. This study focuses on small and medium-sized enterprises (SMEs), investigating how they develop and leverage dynamic capabilities to effectively navigate crises. Using the energy crisis as a focal point, the research examines the strategic responses of twelve Italian SMEs through three critical phases of crisis management: pre-crisis preparation, in-crisis adaptation, and post-crisis recovery. Adopting a qualitative methodology, this research employs in-depth case studies to construct a comprehensive model that integrates process and variance analyses. By addressing the central research question—how SMEs develop and use dynamic capabilities to gain competitive advantages in response to crises—this study uncovers critical insights into organizational response. The findings reveal that SMEs implement tailored strategies for each crisis phase. In the pre-crisis phase, firms focus on risk anticipation, environmental scanning, and building resource flexibility. During the crisis, they engage in rapid reconfiguration, leveraging innovation and collaboration to mitigate disruptions. In the post-crisis phase, they consolidate lessons learned, embedding them into their operational frameworks to enhance long-term resilience. These efforts lead to the emergence of first-order dynamic capabilities, which, over time, evolve into second-order capabilities. This study highlights how these dynamic capabilities enable SMEs to navigate uncertainty, capitalize on emerging opportunities, even in adverse conditions. Furthermore, it provides actionable insights for practitioners seeking to enhance organizational resilience. By combining theoretical rigor with practical relevance, this research advances the understanding of crisis management strategies and the evolution of dynamic capabilities, contributing to academic discussions and providing a roadmap for fostering resilience in SMEs.