The role of board design in small-firm crisis response

The COVID-19 pandemic had an unprecedented effect on business firms, offering a unique opportunity to advance business research. Given the concentration of authority at the organizational apex during crises, the role of boards of small- and medium-sized enterprises (SMEs) is crucial, but studies exploring this role in crisis response are lacking. We develop a capability view on boards, investigating the relationship between board design and crisis response in 472 Swedish SMEs. We show that the board design influences crisis response and that SMEs with mature boards respond more decisively to crises. Our findings contribute to the literature on the effects of COVID-19 on business management and emphasize the role of SME boards in crisis management. By demonstrating how board design influences crisis response, the study offers valuable insights for theory and practice.