A business continuity model for manufacturing SMMEs underscoring talent management

Abstract

Purpose: Small, medium-sized and micro-enterprises (SMMEs) are a key catalyst in poverty alleviation and job creation in most economies. The global pandemic adversely impacted this sector even though many SMMEs implemented mitigating measures to curb the effect thereof. The purpose of this study was to explore the impact of the COVID-19 pandemic on organisational performance and talent management practices in the manufacturing SMME sector, specifically in the Gauteng province.

Design/methodology/approach: An embedded mixed-methodology research design was implemented in the study. A self-developed survey was conducted on a sample comprising 395 participants. Structural equation and mediation modelling were performed to analyse the data inferentially. Thematic analysis was used to interpret narrative responses related to business continuity measures implemented during the pandemic.

Findings/results: Results indicated that COVID-19 did not statistically significantly influence organisational performance or talent management facets. Moreover, the impact of COVID-19 on organisational performance was not mediated by talent management practices. Results of the narrative responses revealed that most of the SMMEs did not have a business continuity strategy in place, and they reactively modified offerings, revenue models and sales procedures while reducing human capabilities.

Practical implications: Small, medium-sized and micro-enterprises in the manufacturing sector could utilise the findings to develop a business continuity model underscoring diverse offerings, talent management and revenue measures to foster resilience amid an external shock.

Originality/value: This study is among a few empirical studies conducted on the impact of COVID-19 on organisational performance and talent management in the SMME manufacturing sector contributing to extant literature.