ifkad articles

The Role of Consulting Firms in Business Continuity: A Case of Vulnerable SMEs

Iñaki Garagorri, Nekane Aramburu

This study is aimed at analysing the impact of consulting firms’ intervention in business continuity and survival, particularly, in the case of SMEs. Along these lines, the main objective of this research is to measure such an impact in a set of Basque SMEs. It is hypothesized that an output of a successful consulting intervention is the improvement of company’s performance. Therefore, this is considered as the dependent variable. For the purpose of this study, company’s performance encompasses three different dimensions: 1) growth (i.e. number of employees, operating revenue); 2) economic performance (i.e. EBITDA, ROA); 3) financial performance (i.e. liquidity, debt ratio). The economic and financial information of 75 SMEs that have participated in an emergency plan for SMEs in a situation of vulnerability for the years 2014 and 2015 has been collected exploiting SABI database, which contains economic and financial information of Spanish and Portuguese companies. The variation from year to year regarding economic and financial results of this group of firms has also been analysed and compared to the results of a control group of companies. The impact of consulting firms within organizations is not clear (Wright and Kitay, 2002) and the emergency plan for SMEs in situation of vulnerability implemented in the Basque Country (Spain) offers an unique possibility to examine in depth the impact of consultants’ intervention in business continuity and survival. The practical implications concern to managers of SMEs and consultants, who might know better which is the degree of efficacy of consulting intervention and its impact on companies’ continuity. Public administrators and policy makers might also find it useful to promote the effective use of public funds.

IN: Proceedings IFKAD 2017 – Knowledge Management in the 21st Century: Resilience, Creativity and Co-creation
PP: 1041-1053