This research explores the underlying roles of effectuation and causation logic as they impact upon firm resilience in Small and Medium Sized Enterprises (SMEs) in the unprecedented disruption caused by Covid-19. Because Covid-19 provides a unique and powerful discontinuance to internal and external environments, it requires firm adaptation in a wide variety of areas, as they seek to find a new “normal”. Our study contributes to the literature by applying effectuation to understand how an SME can experiment and learn in the face of disruption, and then subsequently causally adapt their resources and networks to achieve resilient outcomes. It adds to knowledge about the interaction between effectual and causal logic, leading to a more nuanced explanation of how and why an SME might apply each logic when responding to disruption caused by Covid-19.
- environmental disruption