ABSTRACT
COVID-19 has had a dramatic impact on the fashion industry. Fashion brands had to restructure their value chains and refine their strategies to overcome the negative consequences of the lockdown. An analysis of the Italian fashion industry is used to examine how companies responded to the challenges of the pandemic and how they were able to find competitive solutions. Qualitative analysis is used to discuss the case of Italy, a country that was particularly affected by COVID-19. The research shows that companies invested in three different directions to overcome the obstacles posed by the COVID-19 emergency: refocusing on manufacturing, investing in sustainability (especially social), and relying on digital technologies (e.g., e-commerce and videoconferencing) to interact with remote customers. The theoretical and practical contributions of this study are discussed.
ABSTRACT
PurposeThe paper refers to the framework of ambidexterity to explain the strategic paths of manufacturing SMEs in turbulent times, by investigating SMEs' strategic reaction to the COVID-19 pandemic.Design/methodology/approachThe authors adopted an inductive approach methodology. Using a qualitative research method, Italian manufacturing SMEs in different industries were interviewed to outline how they have faced the negative effects of the COVID-19 by considering the strategies implemented during the pandemic.FindingsThe study identifies three ambidextrous strategies for manufacturing SMEs to positively overcome the COVID-19 crisis: (1) playing different roles within the same market (business-to-business and business-to-consumer) simultaneously, (2) simultaneous entrance and management of multiple markets and (3) exploiting manufacturing knowledge for exploring product and business model innovation (simultaneous learning processes).Research limitations/implicationsResults enrich the theoretical discussion on ambidexterity and SMEs, by stressing the strategic dimension of ambidexterity and including a more fine-grained analysis of the different firm' strategic paths in times of crisis.Practical implicationsThe paper provides practical suggestions for manufacturing SMEs on how they can react during turbulent times and crises by implementing ambidextrous strategies also thanks to the use of digital technologies.Originality/valueThis paper contributes to outlining the conditions for SMEs' resilience in the international competitive context by highlighting the perspective of ambidexterity based on the analysis of multiple case studies from manufacturing industries.