Organizational networks and resilience of small and medium manufacturing enterprises: the intervening role of innovation

The unpredictable business environment amongst Small and Medium Manufacturing Enterprises (SMME) in Tanzania, emanating from both natural and man-made crises, impedes SMMEs’ existence, growth, and expansion, yet the contribution of networks to SMMEs’ resilience remains under-explored. Grounded in Dynamic Capability Theory and Network Theory, this study examines the influence of organizational networks on the resilience of SMMEs in Tanzania, with the main focus on innovation as a mediating variable. The study employed a quantitative research design based on a survey of 200 manufacturing SMMEs operating in Tanzania. SmartPLS4 was used to assess both the measurement model and structural model. The study reveals that firm networks provide strategic resources and capabilities that are leveraged by manufacturing SMMEs to ensure their survival during challenging times. Furthermore, it is evident that, besides being one of the antecedents of firm resilience, innovation significantly mediates the relationship between firm networks and resilience among manufacturing SMMEs. The study contributes to business resilience research by evidencing the influence of formal and informal networks on firm resilience in a developing economy characterized by constrained resources.