Double-Sided Perspective of Business Resilience : Leading SME Rationally and Irrationally During Covid-19

Objective - This study aims to elaborate business resilience of small medium enterprises and to test the impact of rational and irrational antecedents of business resilience during COVID-19 crisis.Methodology/Technique - It is cross-sectional and causal study for testing five hypothesizes. Convenience approach was used as non-probabilistic sampling method. It involved 506 small medium enterprises in Jawa and Sumatera, the biggest islands in Indonesia. Collected data were structured with PLS based Structural Equation Modelling.Findings – The result explained that business resilience is influenced positively, directly, and significantly by business flexibility and workplace spirituality. Business flexibility is influenced by workplace spirituality, pro-social leadership, and alliance capability. Pro-social leadership of owners and/or managers influences implementation of health protocol and alliance capability.Novelty - This study has proved that business resilience has both sides of antecedents - in rational and irrational perspectives.Type of Paper: Empirical