SOCIAL CAPITAL AND CRISIS MANAGEMENT READINESS IN UAE SERVICE SMES: THE CRITICAL ROLE OF LEADERSHIP BEHAVIOR

Abstract

This study investigates the performance of service sector SMEs in the United Arab Emirates (UAE), focusing on the roles of social capital, crisis management readiness, and leadership behavior. Addressing significant gaps in the existing literature, we propose a novel framework for empirical analysis. During crises, both social capital and crisis management readiness are critical for SME performance. However, previous research reveals inconsistent findings, suggesting the need for an intervening variable. This study suggests that leadership behavior moderates the impact of social capital and crisis management readiness on SME performance. The proposed framework is grounded in the resource-based view and contingency theory, with social capital and crisis management readiness corresponding to the former, and leadership behavior to the latter. This research aims to enhance understanding of the dynamic interplay between these variables and provide practical insights for improving SME resilience in crisis contexts.