SME Restructuring in a Recession: A Desire for Growth

By studying a successful small and medium enterprise (SME) in the recession of 2008-09, this article investigates why and how the firm used restructuring strategy to achieve business growth. The case study firm was examined by employing plural methods to investigate growth phenomena and identify reasons for implementing restructuring-strategy. The plurality was made by utilising the participant action research as an approach, case study as a design and mixed method as a strategy. The study confirms that the firm implemented a holistic restructuring approach to achieve business growth; it restructured human resources, physical resources, business processes and organisational structure. Since achieving growth in a recession is not a common phenomenon for SMEs, it has multiple implications – the owner-manager, policy makers, academics, and supporting organisations. The owner-manager was involved in the research process which will help him to implement the findings in the future similar situations. By contextualising the restructuring strategy, other owner-managers may implement in their businesses achieve business growth. Policy makers may apply the findings to form growth friendly policies and make SMEs grow in adverse economic situations. Similarly, academics may use the findings of this research to investigate growth phenomena in other contexts. Finally, the business supporting organisations may use this empirical knowledge to help SMEs grow in different contexts.