IDEAS home Printed from https://ideas.repec.org/a/jfr/afr111/v12y2023i4p86.html
   My bibliography  Save this article

Inventory Management Practices among Small and Micro Businesses during COVID-19 Pandemic

Author

Listed:
  • Tuan Zainun Tuan Mat
  • Marshita Hashim
  • Shukriah Saad
  • Mohd Badrulhisham Ismail

Abstract

Developing micro, small, and medium businesses (SMEs) encourages Malaysia's economic growth. The Covid-19 pandemic has greatly affected SMEs. During the Covid-19 pandemic, with material shortages and shipping delays, the ability to track the inventory is critical. Adopting digital technology in the inventory tracking process will assist the company in managing its inventory effectively. SMEs need to have relevant knowledge and technical skills to adopt digital technology. Specifically, this study explores SMEs' current inventory management practices to gauge their knowledge of inventory management. Data was collected using semi-structured interviews using a questionnaire with ten SMEs in Selangor. This study documents that SME organisation value is positively associated with best inventory management practices. In addition, results show that divergence can intensify the negative relationship between low inventory management practices and SMEs' value. Findings support the need for more scrutiny by SME owners, regulators, policymakers, and standard setters to monitor the conflict, which is crucial for SMEs to overcome the issues and challenges they face. This study will contribute to the sustainability of SMEs, consistent with the national agenda to strengthen the SMEs as highlighted in the government’s new Economic Transformation Program (ETP) through Bumiputera’s Economic Transformation Agenda.

Suggested Citation

  • Tuan Zainun Tuan Mat & Marshita Hashim & Shukriah Saad & Mohd Badrulhisham Ismail, 2023. "Inventory Management Practices among Small and Micro Businesses during COVID-19 Pandemic," Accounting and Finance Research, Sciedu Press, vol. 12(4), pages 1-86, November.
    • Handle: RePEc:jfr:afr111:v:12:y:2023:i:4:p:86
    as

    Download full text from publisher

    File URL: https://www.sciedupress.com/journal/index.php/afr/article/download/24750/15380
    Download Restriction: no
    File URL: https://www.sciedupress.com/journal/index.php/afr/article/view/24750
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Huayu Shen & Mengyao Fu & Hongyu Pan & Zhongfu Yu & Yongquan Chen, 2020. "The Impact of the COVID-19 Pandemic on Firm Performance," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 56(10), pages 2213-2230, August.
    Full references (including those not matched with items on IDEAS)

    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. Osmani RUFI & Kamberi EGZON, 2022. "The Profitability Analysis of the Best Companies Listed on the North Macedonian Stock Exchange (MBI10) during the Pandemic Crisis Covid-19," Economics and Applied Informatics, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, issue 1, pages 35-42.
    2. Fasano, Francesco & Javier Sánchez-Vidal, F. & La Rocca, Maurizio, 2022. "The role of government policies for Italian firms during the COVID-19 crisis," Finance Research Letters, Elsevier, vol. 50(C).
    3. Chen, Yutong & Debnath, Sisir & Sekhri, Sheetal & Sekhri, Vishal, 2023. "The impact of Covid-19 containment lockdowns on MSMEs in India and resilience of exporting firms," Journal of Economic Behavior & Organization, Elsevier, vol. 210(C), pages 320-341.
    4. Anna Doś & Monika Wieczorek-Kosmala & Joanna Błach, 2022. "The Effect of Business Legal Form on the Perception of COVID-19-Related Disruptions by Households Running a Business," Risks, MDPI, vol. 10(4), pages 1-17, April.
    5. Huang, Zhi-xiong & Yang, Xiandong, 2021. "Carbon emissions and firm innovation," Economic Analysis and Policy, Elsevier, vol. 69(C), pages 503-513.
    6. Shabir, Mohsin & Jiang, Ping & Wang, Wenhao & Işık, Özcan, 2023. "COVID-19 pandemic impact on banking sector: A cross-country analysis," Journal of Multinational Financial Management, Elsevier, vol. 67(C).
    7. Shen, Huayu & Hou, Fei, 2021. "Trade policy uncertainty and corporate innovation evidence from Chinese listed firms in new energy vehicle industry," Energy Economics, Elsevier, vol. 97(C).
    8. Padhan, Rakesh & Prabheesh, K.P., 2021. "The economics of COVID-19 pandemic: A survey," Economic Analysis and Policy, Elsevier, vol. 70(C), pages 220-237.
    9. Lin, Hang & Zhang, Zhengjun, 2022. "Extreme co-movements between infectious disease events and crude oil futures prices: From extreme value analysis perspective," Energy Economics, Elsevier, vol. 110(C).
    10. Omrane Guedhami & April Knill & William L. Megginson & Lemma W. Senbet, 2022. "The dark side of globalization: Evidence from the impact of COVID-19 on multinational companies," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(8), pages 1603-1640, October.
    11. 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.
    12. Bai, Chunguang & Zhu, Qingyun & Sarkis, Joseph, 2024. "Do blockchain capabilities help overcome supply and operational risks: Insights from firm market returns during COVID-19," Omega, Elsevier, vol. 126(C).
    13. repec:ers:journl:v:xxiv:y:2021:i:4:p:955-976 is not listed on IDEAS
    14. Tsuruta, Daisuke, 2024. "Bank credit to SMEs in Japan: Evidence from normal times, the global financial crisis, and the COVID-19 crisis," Pacific-Basin Finance Journal, Elsevier, vol. 87(C).
    15. Pham, Son Duy & Nguyen, Thao Thac Thanh & Do, Hung Xuan & Vo, Xuan Vinh, 2023. "Portfolio diversification during the COVID-19 pandemic: Do vaccinations matter?," Journal of Financial Stability, Elsevier, vol. 65(C).
    16. Trisninik Ratih Wulandari & Doddy Setiawan & Ari Kuncara Widagdo, 2022. "Related Party Transactions and Firm Value in Indonesia: Opportunistic vs. Efficient Transactions," Risks, MDPI, vol. 10(11), pages 1-11, November.
    17. Shen, Huayu & Liang, Yue & Li, Hanwen & Liu, Jie & Lu, Guangxi, 2021. "Does geopolitical risk promote mergers and acquisitions of listed companies in energy and electric power industries," Energy Economics, Elsevier, vol. 95(C).
    18. Mihaela Ionela SOCOLIUC, 2020. "Considerations Concerning The Implications Of The Covid 19 Pandemic On The Role Of The Corporate Governance In The Ensurance Of The Continuity Of The Activity," Annales Universitatis Apulensis Series Oeconomica, Faculty of Sciences, "1 Decembrie 1918" University, Alba Iulia, vol. 2(22), pages 126-138.
    19. Hayakawa,Kazunobu & Sudsawasd,Sasatra, 2024. "The Wage Effect of the COVID-19 Pandemic by Company Size: Evidence from Thailand," IDE Discussion Papers 945, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    20. Dian Perwitasari & Doddy Setiawan & An Nurrahmawati & Isna Putri Rahmawati, 2022. "Firm Performance during COVID-19 Pandemic: Does Ownership Identity Matter? Evidence from Indonesia," JRFM, MDPI, vol. 15(10), pages 1-18, September.
    21. Xu, Jin & Huang, Shoujun & Shi, Lu & Sharma, Susan Sunila, 2021. "Trade conflicts and energy firms' market values: Evidence from China," Energy Economics, Elsevier, vol. 101(C).

    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

    Statistics

    Access and download statistics

    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:jfr:afr111:v:12:y:2023:i:4:p:86. 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: Sciedu Press (email available below). General contact details of provider: https://edirc.repec.org/data/cepflch.html .

    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.