Measuring SME propensity for resilience using problem structuring methods and TOPSIS

Abstract

Resilience is a critical factor in determining the success and sustainability of companies, enabling them to navigate challenging periods and uncertainties. For small and medium-sized enterprises (SMEs), resilience is even more crucial due to their limited resources and vulnerability to external shocks. Despite its importance, few studies have examined SME resilience comprehensively, and most have failed to offer an integrated model that captures its complex, multifaceted nature. This study addresses this gap by developing an innovative multicriteria evaluation system for assessing SME resilience, focusing on both the factors that enhance and those that constrain resilience. The proposed model uniquely combines two robust methodologies: (1) Strategic Options Development and Analysis (SODA), which uses cognitive mapping to structure complex decision problems; and (2) Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS), which assesses the resilience potential of real SMEs. The model was refined through group work sessions with a panel of specialists and further validated through feedback from external experts. This hybrid approach represents a novel contribution to the literature, providing a holistic, interactive and objective framework for understanding and strengthening SME resilience. The findings have significant theoretical, practical and societal implications, offering valuable insights for managers seeking to enhance their SMEs’ resilience and guiding future research on this critical area. By offering a comprehensive, process-oriented tool for decision-makers, this study paves the way for more resilient SMEs, which are essential for fostering sustainable economic growth and stability.