IDEAS home Printed from https://ideas.repec.org/a/spr/opmare/v16y2023i2d10.1007_s12063-023-00362-3.html
   My bibliography  Save this article

With major risks comes great resilience: the COVID-19 effect on SMEs in a developing country

Author

Listed:
  • Marcelo Martins de Sa

    (Northumbria University)

  • Alexandre Luis Prim

    (National Commercial Apprenticeship Service)

  • Laura Birou

    (Florida Gulf Coast University)

Abstract

As small companies do not have abundant resources and their mitigation and preparation capabilities for large impacts are minimal, this study presents an alternative that can be adopted to face crises resulting from pandemics and develop resilience to respond and recover from major disruptions. The study contributes to the supply chain resilience literature in investigating the gap related to supply chain capabilities for small and medium enterprises' resilience in developing countries. The focus was on micro, small and medium-sized Brazilian breweries. The growth in the number of breweries in Brazil has been a trend in recent years in all country regions. This trend represents an opportunity to develop the local market by generating jobs and strengthening small and medium cities economies. The research objective was twofold: analyze the adoption of resilience strategies from a minimal but possible perspective for small and medium companies (visibility, collaboration, and flexibility), and measure their capacity to anticipate, respond, recover, and learn/ grow from the pandemic's impact. Findings demonstrate the need for visibility and investments in digital transformation and flexibility for workforce reconfiguration and to adjust production to demand. Supply chain collaboration was demonstrated in re-negotiating credit with existing suppliers, finding new suppliers, and getting specific credit lines from the State and Federal Government. These pieces of evidence empirically support previous research findings, although most prior studies were concentrated on large organizations in developed countries. Future research should investigate emergent technologies for small and medium companies to handle supply chain outbreaks in developing countries.

Suggested Citation

  • Marcelo Martins de Sa & Alexandre Luis Prim & Laura Birou, 2023. "With major risks comes great resilience: the COVID-19 effect on SMEs in a developing country," Operations Management Research, Springer, vol. 16(2), pages 1043-1055, June.
  • Handle: RePEc:spr:opmare:v:16:y:2023:i:2:d:10.1007_s12063-023-00362-3
    DOI: 10.1007/s12063-023-00362-3
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s12063-023-00362-3
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.

    File URL: https://libkey.io/10.1007/s12063-023-00362-3?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. Michelle Greenwood, 2016. "Approving or Improving Research Ethics in Management Journals," Journal of Business Ethics, Springer, vol. 137(3), pages 507-520, September.
    2. ManMohan S. Sodhi & Christopher S. Tang, 2012. "Supply Chain Risk Management," International Series in Operations Research & Management Science, in: Managing Supply Chain Risk, edition 127, chapter 0, pages 3-11, Springer.
    3. Arend, Richard J. & Wisner, Joel D., 2005. "Small business and supply chain management: is there a fit?," Journal of Business Venturing, Elsevier, vol. 20(3), pages 403-436, May.
    4. Ivanov, Dmitry & Pavlov, Alexander & Pavlov, Dmitry & Sokolov, Boris, 2017. "Minimization of disruption-related return flows in the supply chain," International Journal of Production Economics, Elsevier, vol. 183(PB), pages 503-513.
    5. Philip B. Whyman & Alina I. Petrescu, 2015. "Workplace Flexibility Practices in SMEs: Relationship with Performance via Redundancies, Absenteeism, and Financial Turnover," Journal of Small Business Management, Taylor & Francis Journals, vol. 53(4), pages 1097-1126, October.
    6. Tang, Christopher & Tomlin, Brian, 2008. "The power of flexibility for mitigating supply chain risks," International Journal of Production Economics, Elsevier, vol. 116(1), pages 12-27, November.
    7. Altay, Nezih & Green III, Walter G., 2006. "OR/MS research in disaster operations management," European Journal of Operational Research, Elsevier, vol. 175(1), pages 475-493, November.
    8. Danny Samson, 2020. "Operations/supply chain management in a new world context," Operations Management Research, Springer, vol. 13(1), pages 1-3, June.
    9. ManMohan S. Sodhi & Christopher S. Tang, 2012. "Researchers’ Perspectives on Supply-Chain Risk Research," International Series in Operations Research & Management Science, in: Managing Supply Chain Risk, edition 127, chapter 0, pages 281-301, Springer.
    10. Usama Awan, 2019. "Impact of social supply chain practices on social sustainability performance in manufacturing firms," International Journal of Innovation and Sustainable Development, Inderscience Enterprises Ltd, vol. 13(2), pages 198-219.
    11. Kamalahmadi, Masoud & Parast, Mahour Mellat, 2017. "An assessment of supply chain disruption mitigation strategies," International Journal of Production Economics, Elsevier, vol. 184(C), pages 210-230.
    12. Azadegan, Arash & Srinivasan, Ravi & Blome, Constantin & Tajeddini, Kayhan, 2019. "Learning from near-miss events: An organizational learning perspective on supply chain disruption response," International Journal of Production Economics, Elsevier, vol. 216(C), pages 215-226.
    13. Helfgott, Ariella, 2018. "Operationalising systemic resilience," European Journal of Operational Research, Elsevier, vol. 268(3), pages 852-864.
    14. Danny Samson & Matteo Kalchschmidt, 2019. "Looking forward in operations management research," Operations Management Research, Springer, vol. 12(1), pages 1-3, June.
    15. Heckmann, Iris & Comes, Tina & Nickel, Stefan, 2015. "A critical review on supply chain risk – Definition, measure and modeling," Omega, Elsevier, vol. 52(C), pages 119-132.
    16. Daugherty, Patricia J. & Richey, R. Glenn & Roath, Anthony S. & Min, Soonhong & Chen, Haozhe & Arndt, Aaron D. & Genchev, Stefan E., 2006. "Is collaboration paying off for firms?," Business Horizons, Elsevier, vol. 49(1), pages 61-70.
    17. David Simchi-Levi & William Schmidt & Yehua Wei & Peter Yun Zhang & Keith Combs & Yao Ge & Oleg Gusikhin & Michael Sanders & Don Zhang, 2015. "Identifying Risks and Mitigating Disruptions in the Automotive Supply Chain," Interfaces, INFORMS, vol. 45(5), pages 375-390, October.
    18. Shuting Li & Xiangfeng Chen, 2019. "The role of supplier collaboration and risk management capabilities in managing product complexity," Operations Management Research, Springer, vol. 12(3), pages 146-158, December.
    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. John Kiplangat Cheruiyot BA DipEd MSc MBA, 2024. "The Resilience of Micro and Small Enterprises in Kenya from a Strategic Perspective: A Systematic Literature Review," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(3s), pages 3197-3218, August.

    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. Vafadarnikjoo, Amin & Tavana, Madjid & Chalvatzis, Konstantinos & Botelho, Tiago, 2022. "A socio-economic and environmental vulnerability assessment model with causal relationships in electric power supply chains," Socio-Economic Planning Sciences, Elsevier, vol. 80(C).
    2. Yang, Honglin & Zhuo, Wenyan & Shao, Lusheng & Talluri, Srinivas, 2021. "Mean-variance analysis of wholesale price contracts with a capital-constrained retailer: Trade credit financing vs. bank credit financing," European Journal of Operational Research, Elsevier, vol. 294(2), pages 525-542.
    3. Silvia Carpitella & Ilyas Mzougui & Joaquín Izquierdo, 2022. "Multi-criteria risk classification to enhance complex supply networks performance," OPSEARCH, Springer;Operational Research Society of India, vol. 59(3), pages 769-785, September.
    4. Nishat Alam Choudhary & Shalabh Singh & Tobias Schoenherr & M. Ramkumar, 2023. "Risk assessment in supply chains: a state-of-the-art review of methodologies and their applications," Annals of Operations Research, Springer, vol. 322(2), pages 565-607, March.
    5. Garvey, Myles D. & Carnovale, Steven, 2020. "The rippled newsvendor: A new inventory framework for modeling supply chain risk severity in the presence of risk propagation," International Journal of Production Economics, Elsevier, vol. 228(C).
    6. Subodha Kumar & Rakesh R. Mallipeddi, 2022. "Impact of cybersecurity on operations and supply chain management: Emerging trends and future research directions," Production and Operations Management, Production and Operations Management Society, vol. 31(12), pages 4488-4500, December.
    7. Dubey, Vivek Kumar & Chavas, Jean-Paul & Veeramani, Dharmaraj, 2018. "Analytical framework for sustainable supply-chain contract management," International Journal of Production Economics, Elsevier, vol. 200(C), pages 240-261.
    8. Hosseini, Seyedmohsen & Morshedlou, Nazanin & Ivanov, Dmitry & Sarder, M.D. & Barker, Kash & Khaled, Abdullah Al, 2019. "Resilient supplier selection and optimal order allocation under disruption risks," International Journal of Production Economics, Elsevier, vol. 213(C), pages 124-137.
    9. Singh, Nitya P. & Hong, Paul C., 2020. "Impact of strategic and operational risk management practices on firm performance: An empirical investigation," European Management Journal, Elsevier, vol. 38(5), pages 723-735.
    10. Chowdhury, Nighat Afroz & Ali, Syed Mithun & Mahtab, Zuhayer & Rahman, Towfique & Kabir, Golam & Paul, Sanjoy Kumar, 2019. "A structural model for investigating the driving and dependence power of supply chain risks in the readymade garment industry," Journal of Retailing and Consumer Services, Elsevier, vol. 51(C), pages 102-113.
    11. Cecil Ash & Uday Venkatadri & Claver Diallo & Peter Vanberkel & Ahmed Saif, 2023. "PPE Supply Optimization Under Risks of Disruption from the COVID-19 Pandemic," SN Operations Research Forum, Springer, vol. 4(2), pages 1-29, June.
    12. Margolis, Joshua T. & Sullivan, Kelly M. & Mason, Scott J. & Magagnotti, Mariah, 2018. "A multi-objective optimization model for designing resilient supply chain networks," International Journal of Production Economics, Elsevier, vol. 204(C), pages 174-185.
    13. Setene, Letlama & Jordaan, Daniel du P.S., 2021. "The trade-off between chain performance and fragility considering coordination strategies of agri-food chains: a South African egg chain's case study," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 24(3), March.
    14. Oliva, Fábio Lotti, 2016. "A maturity model for enterprise risk management," International Journal of Production Economics, Elsevier, vol. 173(C), pages 66-79.
    15. Tang, Christopher S. & Davarzani, Hoda & Sarkis, Joseph, 2015. "Quantitative models for managing supply chain risks: A reviewAuthor-Name: Fahimnia, Behnam," European Journal of Operational Research, Elsevier, vol. 247(1), pages 1-15.
    16. Qazi, Abroon & Dickson, Alex & Quigley, John & Gaudenzi, Barbara, 2018. "Supply chain risk network management: A Bayesian belief network and expected utility based approach for managing supply chain risks," International Journal of Production Economics, Elsevier, vol. 196(C), pages 24-42.
    17. Antonio Zavala-Alcívar & María-José Verdecho & Juan-José Alfaro-Saiz, 2020. "A Conceptual Framework to Manage Resilience and Increase Sustainability in the Supply Chain," Sustainability, MDPI, vol. 12(16), pages 1-38, August.
    18. Jamshed Raza & Yuxin Liu & Jianwei Zhang & Nan Zhu & Zohaib Hassan & Habib Gul & Sikander Hussain, 2021. "Sustainable Supply Management Practices and Sustainability Performance: The Dynamic Capability Perspective," SAGE Open, , vol. 11(1), pages 21582440211, March.
    19. Rameshwar Dubey & Tripti Singh & Omprakash K. Gupta, 2015. "Impact of Agility, Adaptability and Alignment on Humanitarian Logistics Performance: Mediating Effect of Leadership," Global Business Review, International Management Institute, vol. 16(5), pages 812-831, October.
    20. El Baz, Jamal & Ruel, Salomée, 2021. "Can supply chain risk management practices mitigate the disruption impacts on supply chains’ resilience and robustness? Evidence from an empirical survey in a COVID-19 outbreak era," International Journal of Production Economics, Elsevier, vol. 233(C).

    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:spr:opmare:v:16:y:2023:i:2:d:10.1007_s12063-023-00362-3. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.