THE IMPLICATIONS OF OPERATIONAL DISRUPTION ABSORPTION AND RECOVERABILITY ON SMES' PERFORMANCE: DOES GOVERNMENT SUPPORT MATTER?

This research examines whether government support (GS) affects how disruption recoverability (DR) and absorption (DA) relate to the financial performance (FP) and non-financial performance (NFP) of SMEs. The theories of dynamic capability and resource-based view were adopted to understand how firms maintain their performance in the face of operational disturbances. Data was gathered via a cross-sectional quantitative survey of 170 SMEs in Kano, Nigeria, during the COVID-19 pandemic and the model was tested using partial least square package. The result confirms that both DA and DR significantly influenced FP and NFP among SMEs. However, GS does not have a significant effect on any of the dimensions of performance and its moderating role on DA and DR relationships with performance dimensions are also not significant. The findings highlight the importance of understanding and nurturing both internal resources/capabilities against external resources/capabilities for SMEs to effectively navigate disruptions and boost overall performance. Implications are drawn for theory and practice.