IDEAS home Printed from https://ideas.repec.org/a/eee/soceps/v85y2023ics0038012122002440.html
   My bibliography  Save this article

Building resilience for sustainability of MSMEs post COVID-19 outbreak: An Indian handicraft industry outlook

Author

Listed:
  • Agarwal, Vernika
  • Mathiyazhagan, K.
  • Malhotra, Snigdha
  • Pimpunchat, Busayamas

Abstract

The handicraft business constitutes concept selling rather than mere product selling, which is highly dependent on demand. Handicrafts' Micro Small and Medium Enterprises (MSMEs) have an expanding market in developed countries. The impact of the pandemic on this industry is severe due to the industry's informal nature and seasonal demand. The survival and resilience of these handicraft MSMEs face many challenges in the post-COVID-19 outbreak. The focus of the present study is to understand and analyze the key challenges for building resilience in handicraft MSMEs by scrutinizing the existing literature and interactions with stakeholders. EFA and the Grey DEMATEL approach are used to analyze the challenges for the adoption of resilience. EFA is used to categorize the challenges into various dimensions. The study has divided the challenges for the inclusion of resilience into survivable, sustainable, and viable categories using EFA to plan for short- and long-term business growth. Grey DEMATEL is being utilized for understanding these contextual relationships for each resilience dimension. Grey systems theory is a methodology that enables the incorporation of improbability and vagueness into the analysis. Findings of the study revealed the influencing challenges for each of the dimensions such as competition from machine-made products, insufficient government support and incentives for export, and inefficient managerial concern and response to internationalization as the prominent challenges. The results of this study illustrate the causal relationships amongst the identified resilience challenges to the various stakeholders. These findings offer practical insights for the government to allocate resources and impose measures to ensure resilience, as well as understanding the cause-effect relationship. Managerial implications and Policy insights for building the resilience of handicraft MSMEs are discussed in detail.

Suggested Citation

  • Agarwal, Vernika & Mathiyazhagan, K. & Malhotra, Snigdha & Pimpunchat, Busayamas, 2023. "Building resilience for sustainability of MSMEs post COVID-19 outbreak: An Indian handicraft industry outlook," Socio-Economic Planning Sciences, Elsevier, vol. 85(C).
    • Handle: RePEc:eee:soceps:v:85:y:2023:i:c:s0038012122002440
    DOI: 10.1016/j.seps.2022.101443
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0038012122002440
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.seps.2022.101443?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Jafar Razmi & Arezoo Moharamkhani & Parya Beiraghdar, 2017. "Identifying critical success resilience factors in a supply chain using fuzzy DEMATEL method," International Journal of Management Concepts and Philosophy, Inderscience Enterprises Ltd, vol. 10(4), pages 405-423.
    2. Paul, Justin & Parthasarathy, Sundar & Gupta, Parul, 2017. "Exporting challenges of SMEs: A review and future research agenda," Journal of World Business, Elsevier, vol. 52(3), pages 327-342.
    3. Lina He & Zhenyong Wu & Wei Xiang & Mark Goh & Zhitao Xu & Wenyan Song & Xinguo Ming & Xiao Wu, 2021. "A novel Kano-QFD-DEMATEL approach to optimise the risk resilience solution for sustainable supply chain," International Journal of Production Research, Taylor & Francis Journals, vol. 59(6), pages 1714-1735, March.
    4. Fahimnia, Behnam & Jabbarzadeh, Armin, 2016. "Marrying supply chain sustainability and resilience: A match made in heaven," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 91(C), pages 306-324.
    5. Fu, Xiaoyong & Zhu, Qinghua & Sarkis, Joseph, 2012. "Evaluating green supplier development programs at a telecommunications systems provider," International Journal of Production Economics, Elsevier, vol. 140(1), pages 357-367.
    6. Md. Abdul Moktadir & Anil Kumar & Syed Mithun Ali & Sanjoy Kumar Paul & Razia Sultana & Jafar Rezaei, 2020. "Critical success factors for a circular economy: Implications for business strategy and the environment," Business Strategy and the Environment, Wiley Blackwell, vol. 29(8), pages 3611-3635, December.
    7. Rajesh K. Singh & Suresh K. Garg & S.G. Deshmukh, 2008. "Challenges and strategies for competitiveness of SMEs: a case study in the Indian context," International Journal of Services and Operations Management, Inderscience Enterprises Ltd, vol. 4(2), pages 181-200.
    8. Ocampo, Lanndon & Yamagishi, Kafferine, 2020. "Modeling the lockdown relaxation protocols of the Philippine government in response to the COVID-19 pandemic: An intuitionistic fuzzy DEMATEL analysis," Socio-Economic Planning Sciences, Elsevier, vol. 72(C).
    9. Pravakar Sahoo & Ashwani, 2020. "COVID-19 and Indian Economy: Impact on Growth, Manufacturing, Trade and MSME Sector," Global Business Review, International Management Institute, vol. 21(5), pages 1159-1183, October.
    10. Smith, Scott M. & Roster, Catherine A. & Golden, Linda L. & Albaum, Gerald S., 2016. "A multi-group analysis of online survey respondent data quality: Comparing a regular USA consumer panel to MTurk samples," Journal of Business Research, Elsevier, vol. 69(8), pages 3139-3148.
    11. Pravakar Sahoo & Ashwani, 2020. "COVID-19 AND INDIAN ECONOMY:Impact on Growth, Manufacturing, Trade and MSME sector," IEG Working Papers 390, Institute of Economic Growth.
    12. Hui Xu & Yang Li & Lin Wang, 2020. "Resilience Assessment of Complex Urban Public Spaces," IJERPH, MDPI, vol. 17(2), pages 1-21, January.
    13. Sonia Mukherjee, 2018. "Challenges to Indian micro small scale and medium enterprises in the era of globalization," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 8(1), pages 1-19, December.
    14. Maureen S. Golan & Laura H. Jernegan & Igor Linkov, 2020. "Trends and applications of resilience analytics in supply chain modeling: systematic literature review in the context of the COVID-19 pandemic," Environment Systems and Decisions, Springer, vol. 40(2), pages 222-243, June.
    15. Belhadi, Amine & Kamble, Sachin & Jabbour, Charbel Jose Chiappetta & Gunasekaran, Angappa & Ndubisi, Nelson Oly & Venkatesh, Mani, 2021. "Manufacturing and service supply chain resilience to the COVID-19 outbreak: Lessons learned from the automobile and airline industries," Technological Forecasting and Social Change, Elsevier, vol. 163(C).
    16. Lin, Yu-En & Li, Yi-Wen & Cheng, Teng Yuan & Lam, Keith, 2021. "Corporate social responsibility and investment efficiency: Does business strategy matter?," International Review of Financial Analysis, Elsevier, vol. 73(C).
    17. Narayanamoorthy, Samayan & Ramya, L. & Kalaiselvan, Samayan & Kureethara, Joseph Varghese & Kang, Daekook, 2021. "Use of DEMATEL and COPRAS method to select best alternative fuel for control of impact of greenhouse gas emissions," Socio-Economic Planning Sciences, Elsevier, vol. 76(C).
    18. Harvinder S. Mand & Gaganpreet Kaur & Amarjit Gill & Neil Mathur, 2021. "Impact of family control on information technology investment and information technology adoption in India," International Journal of Emerging Markets, Emerald Group Publishing Limited, vol. 17(9), pages 2380-2396, February.
    19. Ahmed Mohammed & Morteza Yazdani & Amar Oukil & Ernesto D. R. Santibanez Gonzalez, 2021. "A Hybrid MCDM Approach towards Resilient Sourcing," Sustainability, MDPI, vol. 13(5), pages 1-30, March.
    20. Yaser Tahmasebi Birgani & Farhad Yazdandoost, 2018. "An Integrated Framework to Evaluate Resilient-Sustainable Urban Drainage Management Plans Using a Combined-adaptive MCDM Technique," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 32(8), pages 2817-2835, June.
    21. Dmitry Ivanov & Alexandre Dolgui, 2020. "Viability of intertwined supply networks: extending the supply chain resilience angles towards survivability. A position paper motivated by COVID-19 outbreak," International Journal of Production Research, Taylor & Francis Journals, vol. 58(10), pages 2904-2915, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Rini & Priyamvada, 2023. "COVID-19 challenge: optimizing investment in service and promotional effort with pricing strategy for sustainability in new normal," OPSEARCH, Springer;Operational Research Society of India, vol. 60(3), pages 1218-1229, September.
    2. Isaac Kazungu, 2023. "Business Development Services and Participation of Rural-Based Micro Enterprises in Export Markets: Exploring the Heterogeneity of the Tanzanian Handicrafts Industry," SAGE Open, , vol. 13(4), pages 21582440231, November.
    3. Liu, Xiaoxia & Yang, Ming & Shao, Zongyuan & Liu, Liyan & Gu, Weiyu, 2024. "Assessment of impacts of mineral raw material resource efficiency on enterprise performance," Resources Policy, Elsevier, vol. 90(C).
    4. Mahmud, Priom & Ahmed, Mushaer & Janan, Farhatul & Xames, Md Doulotuzzaman & Chowdhury, Naimur Rahman, 2023. "Strategies to develop a sustainable and resilient vaccine supply chain in the context of a developing economy," Socio-Economic Planning Sciences, Elsevier, vol. 87(PB).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hossain, Mohammad Rokibul & Akhter, Fahmida & Sultana, Mir Misnad, 2022. "SMEs in Covid-19 Crisis and Combating Strategies: A Systematic Literature Review (SLR) and A Case from Emerging Economy," Operations Research Perspectives, Elsevier, vol. 9(C).
    2. Balan Sundarakani & Okey Peter Onyia, 2021. "Fast, furious and focused approach to Covid-19 response: an examination of the financial and business resilience of the UAE logistics industry," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 26(4), pages 237-258, December.
    3. Ozdemir, Dilek & Sharma, Mahak & Dhir, Amandeep & Daim, Tugrul, 2022. "Supply chain resilience during the COVID-19 pandemic," Technology in Society, Elsevier, vol. 68(C).
    4. Gagan Deep Sharma & Sascha Kraus & Amogh Talan & Mrinalini Srivastava & Christina Theodoraki, 2024. "Navigating the storm: the SME way of tackling the pandemic crisis," Small Business Economics, Springer, vol. 63(1), pages 221-241, June.
    5. Debashree Das & Avik Datta & Patanjal Kumar & Yigit Kazancoglu & Mangey Ram, 2022. "Building supply chain resilience in the era of COVID-19: An AHP-DEMATEL approach," Operations Management Research, Springer, vol. 15(1), pages 249-267, June.
    6. Minh-Tai Le & Nhat-Luong Nhieu, 2022. "A Novel Multi-Criteria Assessment Approach for Post-COVID-19 Production Strategies in Vietnam Manufacturing Industry: OPA–Fuzzy EDAS Model," Sustainability, MDPI, vol. 14(8), pages 1-25, April.
    7. Gaurav Kumar Badhotiya & Gunjan Soni & Vipul Jain & Rohit Joshi & Sameer Mittal, 2022. "Assessing supply chain resilience to the outbreak of COVID-19 in Indian manufacturing firms," Operations Management Research, Springer, vol. 15(3), pages 1161-1180, December.
    8. Priom Mahmud & Sanjoy Kumar Paul & Abdullahil Azeem & Priyabrata Chowdhury, 2021. "Evaluating Supply Chain Collaboration Barriers in Small- and Medium-Sized Enterprises," Sustainability, MDPI, vol. 13(13), pages 1-28, July.
    9. Miguel Reyna-Castillo & Alejandro Santiago & Salvador Ibarra Martínez & José Antonio Castán Rocha, 2022. "Social Sustainability and Resilience in Supply Chains of Latin America on COVID-19 Times: Classification Using Evolutionary Fuzzy Knowledge," Mathematics, MDPI, vol. 10(14), pages 1-18, July.
    10. Maria Ghufran & Khurram Iqbal Ahmad Khan & Fahim Ullah & Wesam Salah Alaloul & Muhammad Ali Musarat, 2022. "Key Enablers of Resilient and Sustainable Construction Supply Chains: A Systems Thinking Approach," Sustainability, MDPI, vol. 14(19), pages 1-19, September.
    11. Paul, Sanjoy Kumar & Chowdhury, Priyabrata & Moktadir, Md. Abdul & Lau, Kwok Hung, 2021. "Supply chain recovery challenges in the wake of COVID-19 pandemic," Journal of Business Research, Elsevier, vol. 136(C), pages 316-329.
    12. El-Awady Attia & Ali Alarjani & Md. Sharif Uddin & Ahmed Farouk Kineber, 2023. "Determining the Stationary Enablers of Resilient and Sustainable Supply Chains," Sustainability, MDPI, vol. 15(4), pages 1-23, February.
    13. Pravakar Sahoo & Ashwani Bishnoi, 2021. "Investment Slowdown in India: Role of Fiscal-Monetary policy and Economic Uncertainty," IEG Working Papers 439, Institute of Economic Growth.
    14. Jiachen Sun & Haiyan Wang & Zhimin Cui, 2023. "Alleviating the Bauxite Maritime Supply Chain Risks through Resilient Strategies: QFD-MCDM with Intuitionistic Fuzzy Decision Approach," Sustainability, MDPI, vol. 15(10), pages 1-21, May.
    15. Amjad Hussain & Muhammad Umar Farooq & Muhammad Salman Habib & Tariq Masood & Catalin I. Pruncu, 2021. "COVID-19 Challenges: Can Industry 4.0 Technologies Help with Business Continuity?," Sustainability, MDPI, vol. 13(21), pages 1-25, October.
    16. Bandyopadhyay, Arnab & Bhatnagar, Sameer, 2023. "Impact of COVID-19 on ports, multimodal logistics and transport sector in India: Responses and policy imperatives," Transport Policy, Elsevier, vol. 130(C), pages 15-25.
    17. Shoufeng Ji & Pengyun Zhao & Tingting Ji, 2023. "A Hybrid Optimization Method for Sustainable and Flexible Design of Supply–Production–Distribution Network in the Physical Internet," Sustainability, MDPI, vol. 15(7), pages 1-34, April.
    18. João Pires Ribeiro & Ana Paula F. D. Barbosa-Póvoa, 2023. "A responsiveness metric for the design and planning of resilient supply chains," Annals of Operations Research, Springer, vol. 324(1), pages 1129-1181, May.
    19. Chih-Hung Hsu & Ming-Ge Li & Ting-Yi Zhang & An-Yuan Chang & Shu-Zhen Shangguan & Wan-Ling Liu, 2022. "Deploying Big Data Enablers to Strengthen Supply Chain Resilience to Mitigate Sustainable Risks Based on Integrated HOQ-MCDM Framework," Mathematics, MDPI, vol. 10(8), pages 1-35, April.
    20. Lida Safari & Seyed Jafar Sadjadi & Farzad Movahedi Sobhani, 2024. "Resilient and sustainable supply chain design and planning under supply disruption risk using a multi-objective scenario-based robust optimization model," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(11), pages 27485-27527, November.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:soceps:v:85:y:2023:i:c:s0038012122002440. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/seps .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.