Exogenous crises and SMEs resilience: The Dynamic Open Innovation Funnel

In the fall of 2019, a global coronavirus pandemic (COVID-19) negatively impacted the economy of small and medium-sized enterprises (SMEs) worldwide. It is essential to identify effective resilience strategies to help SMEs overcome economic and financial crises caused by pandemics or other exogenous crises. This paper delves into this aspect by asking the following research question: How can Open Innovation and dynamic capabilities be leveraged by SMEs to develop resilience during an exogenous crisis?. The study employs a mixed methods approach to investigate the experiences of SMEs located in the Free State of Bavaria (Germany). Based on the quantitative and qualitative data collected and analysed, this study proposes an innovative framework, named Dynamic Open Innovation Funnel, which integrates the managerial constructs of Open Innovation and dynamic capabilities to support SMEs resilience during exogenous crises.