Managing tensions toward SME resilience: a paradox theory perspective

Entrepreneurs and organizations during crises are often compelled to make difficult choices between opposing courses of actions (‘either/or’), which in turn are limiting firms’ potential in achieving their outmost capacity due to disregarded decisions. Drawing upon paradox theory, this study shows how opposing courses of actions can be simultaneously achieved (‘both/and’) through strategies that enhance various resilience outcomes (engineering, ecological, evolutionary). Using semi-structured interviews, data were gathered from 22 SMEs that have managed to survive a number of severe crises in Lebanon. Findings show the emergence of numerous tensions categorized as learning, organizing, belonging, and performing, which have been associated with ecological, engineering, and evolutionary resilience. Tensions included but not limited to business growth versus business restart, expense increase versus expense decrease, homogeneity role versus distinction role, short-term economic gain versus long-term objectives, which all can be simultaneously achieved through relevant strategies. This study advances entrepreneurship resilience literature by illustrating how the management of paradox tensions is central towards achieving resilience in its various forms. Policymakers and entrepreneurs can benefit from the findings to develop national resilience-building frameworks, incubation programs, and entrepreneurship campaigns, all based on the embracement of tensions as a window for resilience, growth, and innovation.