Mediating effect of entrepreneurial social identity on the MSME-owners’ attitude and resilience amid COVID-19 crisis

ABSTRACT The COVID-19 pandemic has shaken most firms worldwide. The lockdown and community quarantine put micro-, small, and medium-sized enterprises (MSMEs)’ resilience to the test. With nonessential businesses closed and all consumers isolated, the survival of businesses remains at risk. As owners are challenged to survive, contradictory perspectives on the resiliency of small and medium-sized enterprises during adversity emerge. This study aims to determine the moderating effect of entrepreneurial social identity on the relationship between perceived attitude and resilience behavior of business owners. According to the findings, MSMEs’ perseverance led to a structure that maximizes technology and expands community network. The result shows MSMEs’ vitality and resilience during COVID-19. Evidently, the mediating effect of entrepreneurial social identity enhanced the resilience of the owners, which resulted in technology-based opportunities and re-creation of community-based enterprises. Indirectly, but significantly, the creativity and self-sufficiency of MSME owners contributes to the reduction of poverty and unemployment.