This regional synthesis addresses a major gap in knowledge about the effects of COVID-19 on agriculture and food across Asia • Key informants from 20 Asian countries assessed early direct and indirect effects on each of four major regional farming and food systems • The analysis showed Asian farming and food systems were moderately resilient to the pandemic, especially the hill mixed system • System resilience, food and labour markets, and farm and food chain economic benefits are key priorities for recovery policies and programmes • This study highlights COVID-19 effects and informs recovery policies and precautionary strategies against future pandemics in Asia and globally
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.
In the Philippines, economic recovery in the aftermath of the COVID-19 pandemic necessitates a digital shift for businesses. Through this innovation, their operations can continue under the new normal. The adoption of digital payments is one of the common business recovery options supported by the government. In this study, the factors affecting the adoption of digital payments were examined. From July 2020–January 2021, an online survey was conducted on a sample of 433 respondents with at least supervisory level positions. On average, the firms operated their enterprises for 16.22 years and employed 1.8 workers with 57% being sole proprietors, 54% micro enterprises, and 30% having information technology (IT) infrastructure. A decline in their business performance during the pandemic was observed. Two-thirds of the firms across the country employed digital payment technology, and 55% of these firms started using the technology during the pandemic period. Logit analysis was conducted to analyze the determinants of digital payment adoption. Being relatively younger, operating under a partnership business structure relative to sole proprietors, employing more human resources, having IT facilities, and experiencing business growth before the pandemic were found to be predictive of the adoption of digital payments in the business operations of these firms. While younger firms are more receptive to this new payment technology, digital capacity development programs may further revitalize businesses and industries. Such mechanisms need to be put in place targeting vulnerable enterprises: firms under sole proprietorship, without infrastructure for IT, with relatively fewer employees being relatively smaller organizations, and in decline in terms of business growth even prior to the pandemic.
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