Track: Operations Management

Abstract

At this time, SMEs are facing the COVID-19 pandemic that results in changes in market demands and the conditions in society. Current conditions require SMEs to survive not only by exploiting their existing businesses, but also by trying to explore new opportunities. Companies will have better performance if they are able to balance exploration and exploitation. For SMEs with limited resources, demand for exploration and exploitation are difficult considering that they are usually family enterprises with limited resources and capabilities. To overcome the lack of internal resources and capabilities, SMEs need to collaborate with external parties and form social networks. Social networks can provide additional resources for SMEs that could be in the forms of social support, friendship, time, information, expertise, money, business transactions, activities, and so on. This article discusses the characteristics of social networks that can influence the exploration and exploitation competences of SMEs. At the end, SMEs that are able to explore new things and at the same time exploit their current business will have good performance and survive.

Keyword: Exploitation, Exploration, Dynamic Environment, Social Network.