Capabilities and technological level of MSMEs in the response to the pandemic

Abstract

This article analyzes the response of MSMEs to COVID-19 and the ensuing economic recession. It is assumed that the capabilities and technological level determine the behavior in crisis situations to maintain the business model followed, suspend its activity, or transition to innovative forms more intensive in the use of technology. The methodology used is a multiple case study that includes 15 modular cases in Mexican MSMEs. Through the systematization of the information by means of indexes of capabilities and technological intensity, a joint analysis is presented that responds to the hypotheses of the work. The results show that there is a remarkable level of coincidence between the entrepreneur's decisions as described by the individual cases and the working hypotheses of the joint analysis, which indicates that the hypotheses are correct and that the use of indexes is adequate. It is concluded that MSMEs with more capabilities and technology are more likely to respond to crises through innovation, with more capabilities but less technology the response is resilience or perseverance, and with fewer capabilities and more technology the response is downsizing or going out of business due to lack of capabilities