Channel Structure Innovation as a Response to the COVID-19 Pandemic

Abstract

Although there are studies on COVID-19's impact on supply chains for essential goods, the authors agree that SMEs have been largely ignored in this context. National statistics indicate that micro, small, and medium enterprises represent 99.8% of total business units in Mexico and are therefore a relevant unit of analysis. Such companies had to deal with lack of materials and delayed delivery times combined with a slowed-down demand of products. The adoption of e-commerce as an alternative channel was finally embraced by small enterprises in the country in order to survive. Original research with data from interviews to five micro and small enterprises managers is used to write mini-case studies, showing that both omni-channel and vertical integration were the most commonly used strategies. Results indicate that both flexibility and control are at the center of the decision to vertically integrate and therefore disintermediate (reducing the level number of the channel structure). A model of distribution channel innovation is proposed together with theoretical and practical implications.

Analyzing Academic Discourse Evolution on Consumer Behavior and COVID-19 Using Topic Modeling

“…The need to face the pandemic crisis has forced small companies and intermediaries to embrace vertical integration and omnichannel strategies (Gutiérrez-Leefmans, 2022). This crisis period has prompted a change in consumer behavior that has migrated from physical stores to online purchases, which is likely to continue in the future, increasing the frequency of online purchases and changing their consumption habits (Yin et al, 2021).…”