Are MSMEs More Resilient Compared to Large Firms in Terms of Global Supply Chain Disruptions?

This research paper examines the comparative resilience of Micro, Small and Medium Enterprises (MSMEs) and large firms in regards to global supply chain disruptions. Using qualitative primary data from four interviews with MSME owners across food, textile and beauty service sectors in India, this study explores how flexibility enables MSMEs to survive global crises such as the COVID-19 pandemic more effectively compared to large firms. The findings reveal that MSMEs exhibit multiple dimensions of flexibility, including cost adjustments, workforce reorganisation, efficient decision making, personalised service, and supply chain agility. In contrast, large firms, though systematic, face complex rules, rigid hierarchies, and demonstrate a lack of flexibility which hinders their capabilities during global crises. The results highlight that the trade-off between efficiency and flexibility can significantly impact business continuity during global supply chain shocks. Overall, this study highlights the critical role of MSMEs in fostering economic stability during increasingly unpredictable global conditions.