Organizational resilience and enterprise profitability in the Philippines during the COVID-19 pandemic: an approach using the fuzzy-set qualitative comparative analysis
Journal of Global Operations and Strategic Sourcing
ISSN: 2398-5364
Article publication date: 10 July 2023
Issue publication date: 27 August 2024
Abstract
Purpose
This paper aims to determine pathways leading to enterprise profitability during the COVID-19 pandemic in the Philippines.
Design/methodology/approach
The study (N = 272) was participated by 228 micro, small and medium enterprises (MSMEs) and 44 large enterprises. Configurational analysis using the fuzzy-set qualitative comparative analysis was used in modelling combinations of firm characteristics and organizational resilience attributes that could lead to enterprise profitability.
Findings
Using the Benchmark Resilience Tool of Resilient Organisations, the study showed that three main attributes of organizational resilience (leadership and culture, networks and relationships, and readiness to change) played significant roles in enterprise profitability. Other conditions of varying influence on profitability included costs, sales, number of employees and the number of years in operations of an enterprise. For MSMEs, profitability can be achieved if all resilience attributes are present, while for large enterprises, the absence of some resilience attributes can be compensated by other attributes such as low decline in sales, low employee reduction, and more years in operation.
Research limitations/implications
While the COVID-19 pandemic’s impacts have been far-reaching, the MSMEs and large enterprises are more likely to be profitable if they have used the three organizational resilience attributes. Moreover, these attributes do not only improve firm profitability and the overall enterprise performance during the present pandemic but also prepare them for future shocks.
Originality/value
To the best of the authors’ knowledge, modelling antecedents of enterprise profitability using configurational analysis is the first in the Philippines.
Keywords
Acknowledgements
Foremost, the authors would like to thank the University of the Philippines Mindanao for the funding support, the Resilient Organisations for their Benchmark Resilience Tool that was used to cover the organizational resilience attributes, and the Department of Finance in the Philippines, Department of Trade and Industry (DTI) and the University of the Philippines (UP) constituent universities for their assistance in the dissemination of the online questionnaire to the survey participants. Also, the authors thank the assistance of Ms Nathalia Alawan and Ms Margareth Mary Angeli Serrano in the data collection of this paper, and lastly, the authors are grateful to all enterprises who have participated in the online survey of this paper.
Citation
Romo, G.D.A., Sarmiento, J.M.P., Durano, F.L.A., Acopiado, I.M.A., Acuña, T.R., Traje, A.M. and Wahing, G.D. (2024), "Organizational resilience and enterprise profitability in the Philippines during the COVID-19 pandemic: an approach using the fuzzy-set qualitative comparative analysis", Journal of Global Operations and Strategic Sourcing, Vol. 17 No. 3, pp. 474-494. https://doi.org/10.1108/JGOSS-11-2022-0113
Publisher
:Emerald Publishing Limited
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