Digital Organizational Resilience in Latin American MSMEs: Entangled Socio-Technical Systems of People, Practices, and Data

This study develops a systemic framework to conceptualize digital organizational resilience in micro, small, and medium-sized enterprises (MSMEs) as an emergent property of entangled socio-technical systems. Building on theories of distributed cognition, sociomateriality, and resilience engineering, this paper argues that resilience does not reside in isolated elements—such as leadership, technologies, or procedures—but in their dynamic interplay. Four interdependent dimensions—human, technological, organizational, and institutional—are identified as constitutive of resilience capacities. The research design is conceptual and exploratory in nature. Two theory-driven conceptual statements are formulated: first, that natural language mediation in human–machine interaction enhances coordination and adaptability; and second, that distributed cognition and prototyping practices strengthen collective problem-solving and adaptive capacity. These conceptual statements are not statistically tested but serve as conceptual anchors for the model and as guiding directions for future empirical studies. Empirical illustrations from Ecuadorian MSMEs ground the framework in practice. The evidence highlights three insights: (1) structural fragility, as micro and small firms dominate the economy but face high mortality and financial vulnerability; (2) uneven digitalization, with limited adoption of BPM, ERP, and AI due to skill and resource constraints; and (3) disproportionate gains from modest interventions, such as optimization models or collaborative prototyping. This study contributes to organizational theory by positioning MSMEs as socio-technical ecosystems, providing a conceptual foundation for future empirical validation.