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Impact of supply chain disruptions during the COVID-19 pandemic to micro, small and medium enterprises in Davao Region, Philippines

Nikko Longjas Laorden (School of Management, University of the Philippines Mindanao, Davao City, Philippines)
Jon Marx Paredes Sarmiento (School of Management, University of the Philippines Mindanao, Davao City, Philippines)
Glory Dee Antero Romo (School of Management, University of the Philippines Mindanao, Davao City, Philippines)
Thaddeus Retuerto Acuña (School of Management, University of the Philippines Mindanao, Davao City, Philippines)
Imee Marie Añabesa Acopiado (School of Management, University of the Philippines Mindanao, Davao City, Philippines)

Journal of Asia Business Studies

ISSN: 1558-7894

Article publication date: 11 January 2022

Issue publication date: 19 May 2022

784

Abstract

Purpose

This paper aims to investigate the impact of supply chain disruptions on the operations and sales performance of micro, small and medium enterprises (MSMEs) and the adoption of “green” technology during the COVID-19 pandemic in Davao Region, Philippines.

Design/methodology/approach

A business impact survey was conducted among 113 MSMEs in Davao Region through the Regional Inclusive Innovation Center participated by the industry, government and the academe from October–December 2020. The impact of supply chain disruptions on the status of business operations was determined using ordered logit regression, while the impact on sales performance during the lockdown and new normal periods were modeled using logit regression. The technology upgrading plans of the MSMEs, including the adoption of “green” technology, were also determined.

Findings

This study found that the extent of disruption in processing the goods and services resulted in a negative impact on business operations, and the disruption of the availability of raw materials negatively affected the sales performance during the lockdown period. Moreover, around 20%–33% of MSMEs experiencing heavy supply chain disruptions had a plan to upgrade their business processes by adopting “green” technology.

Research limitations/implications

MSMEs need to establish strategic collaboration among the different stakeholders through public, private, non-government institutions and academe collaboration to enhance the capabilities of MSMEs in handling supply chain disruptions and pursuing technology upgrading.

Originality/value

This paper is among the early studies of the impact of COVID-19 to supply chains in the Philippines focusing on the MSMEs.

Keywords

Citation

Laorden, N.L., Sarmiento, J.M.P., Romo, G.D.A., Acuña, T.R. and Acopiado, I.M.A. (2022), "Impact of supply chain disruptions during the COVID-19 pandemic to micro, small and medium enterprises in Davao Region, Philippines", Journal of Asia Business Studies, Vol. 16 No. 3, pp. 568-586. https://doi.org/10.1108/JABS-05-2021-0216

Publisher

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Emerald Publishing Limited

Copyright © 2021, Emerald Publishing Limited

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