Identifying Factors Influencing SME Business Continuity in Oman

This study explores Business Continuity (BC) theory and practice, with the main aim being to identify factors that influence SME BC, while recognising practices and interventions that sustained the SME landscape in Oman during the COVID-19 pandemic. In addition, the study contributes to SME BC knowledge, practices, and setting standards in Oman. The primary source of data for the study comes from the experiences of small and medium enterprises (SMEs) from various industries during the pandemic, impelled by the lack of research, information, and standards of BC implementation in Oman. This exploratory research applied descriptive analysis to help gain invaluable insight and in-depth understanding of SME BC in Oman using qualitative and multi-method, multi-stage approaches to sequentially collect primary data in three stages. First, semi-structured interviews were conducted with 10 SMEs funded by the government, purposively selected from various industries and different governorates to participate in this exploration. Second, online surveys were conducted using convenience sampling, where 73 responses were received from a total of 172 invited SMEs. Furthermore, using the researcher’s business sector networks and connections, three SME decision makers and practitioners were interviewed to capture their perspectives and recommendations on the adoption of BC by SMEs. The results of this study provide clear insights into SME BC practices and the factors that enable their survival. The findings also support applying BC to reduce the impact of disasters on SMEs in Oman. In addition, the results indicate that most SMEs possess a fair understanding of BC enabling factors and apply its practices but in an unstructured and unplanned way. SMEs find implementing BC vital and relevant to their business; however, they lack the adequate knowledge and skills to facilitate the practice and application of BC. Moreover, the results suggest that SMEs acknowledge the importance of enabling their internal competencies and preparations for external influences affecting their BC. Lastly, SMEs also find the current national BC programmes and interventions inadequate and ineffective in facing major crises. The study therefore calls for greater contribution from the government, interested parties, and other stakeholders towards building more effective and more reliable SME BC. The outcome of this study will undoubtedly be valuable to participant SMEs as they recognise the significance of adapting BC in their business and, in the course of this study, several have expressed interest in learning and practising BC strategies. Some practitioners expressed concerns over challenges associated with BC adoption in SMEs, including SMEs’ readiness, costs, and difficulties of adopting BC processes. Recommendations have therefore been made for stakeholders regarding committed actions and interventions to support SMEs. A further contribution of the current study resides in presenting an empirically derived inventory of responses and actions undertaken by SMEs during the COVID-19 pandemic and identifying factors contributing to their BC. In order to provide a broader view of the approaches that might help to improve SME BC, and based on findings from the interviews, surveys, and literature reviews, a framework to improve SME BC was developed. The proposed framework presents collective actions required from diverse stakeholders in the business ecosystem at different levels to improve SME BC, such as global contributors at the macro-level; governments, large businesses, and supportive interested parties at a meso-level and SME businesses themselves at the micro-level. The study also highlights areas for further research in the expansion of BC knowledge. These areas include exploration of more coping and survival strategies; assessment of SME regulations and BC interventions in order for SMEs to survive and attain sustainable competitive advantage in the global and dynamic business environment.