From Uncertainty to Resilience: Understanding VUCA and BANI for SMEs and its relevance in the lifecycle
DOI:
https://doi.org/10.66635/by4v3w41Keywords:
VUCA, BANI, SMEs, Organizational Lifecycle, Resilience, Uncertainty, Strategic Management, AdaptabilityAbstract
Purpose:Globalization has created significant opportunities for businesses while simultaneously increasing exposure to volatility, uncertainty, complexity, disruption, and emerging threats. In this context, VUCA (Volatility, Uncertainty, Complexity, and Ambiguity) and BANI (Brittle, Anxious, Nonlinear, and Incomprehensible) provide complementary frameworks for understanding the contemporary business environment. This paper examines the relevance of these frameworks for Small and Medium Enterprises (SMEs) across different stages of their organizational lifecycle.
Methodology: The study adopts a conceptual approach based on a review and synthesis of literature on VUCA, BANI, SME resilience, and organizational lifecycle.
Findings: The study highlights that SMEs experience VUCA and BANI conditions differently across the start-up, growth, maturity, and transformation/decline stages. Limited resources, technological capabilities, and managerial capacity can increase SME vulnerability. Therefore, strategic responses, resource allocation, and resilience mechanisms need to be aligned with the specific lifecycle stage.
Practical Implications: The study emphasizes strategic flexibility, innovation, digital capabilities, adaptive leadership, and organizational resilience as critical capabilities for SMEs operating in uncertain environments. Originality/Value: The paper integrates VUCA, BANI, SME characteristics, and organizational lifecycle into a unified conceptual perspective, highlighting how SMEs can move from managing uncertainty to building resilience and converting disruption into opportunities for sustainable growth.
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