Mitigating vulnerability: A configurational analysis of small firms in times of permacrisis

Amid ongoing permacrisis, small firms face severe systemic shocks. Given their resource constraints, understanding how they mitigate vulnerability is therefore critical. Organizational vulnerability is a multidimensional property encompassing sensitivity to disruption, capacity of response, and exposure to external threats. Although theoretical studies suggest that such components are interdependent, they are often examined independently, receiving scant attention in small firm research. Drawing on vulnerability conceptualization and a configurational approach, this study examines how combinations of organizational capacities, sustainability-oriented strategies, and environmental conditions are associated with different performance impact of threats. Using fuzzy-set qualitative comparative analysis (fsQCA) on a sample of 43 Italian small firms, we identify five equifinal configurations associated with a contained impact on performance and two associated with heightened impact. Findings reveal patterns of complementarity and substitution across vulnerability components, offering descriptive insights into how small firms combine organizational capacities and contextual conditions under systemic threat.