Sustainable Development of SMEs During the COVID-19 Pandemic : A Comparative Study between Developed and Developing Countries

This study compares the sustainability and innovation strategies implemented by SMEs in developed and developing countries during the COVID-19 pandemic. This research explores the impact of different innovation strategies on the profitability of SMEs to reveal the best innovation strategy that SMEs must rely on during crises. Using a sample of French and Saudi Arabia SMEs, results show that French SMEs outperformed Saudi Arabia SMEs during the pandemic period. French SMEs have also showed higher capacity to implement marketing, process, product and organizational innovative strategies than their Saudi Arabia counterparts during the lockdown period. Results revealed that modifying distribution channels and product pricing are the best innovation practices implemented by SMEs in France and Saudi Arabia. Modifying product quality had a negative and significant impact on the return of assets of SMEs during the COVID-19 period. Results show any impact of organisational and process innovation on the return of SMEs