Cost Management and Supply Chain Management: Experiences of Vulnerable SMEs during COVID-19

Abstract

Small and Medium Enterprises (SMEs) constitute the vital economic fabric of Thailand, catalyzing growth and employment opportunities. However, the advent of disruptive events, exemplified by the COVID-19 pandemic, poses formidable challenges to their sustainable development. Adequate cost management and supply chain management are crucial for these SMEs to sustain themselves through disruptive scenarios. This study aims at exploring, understanding, and analyzing various factors that would impact the reduced vulnerability of SMEs and enhance the sustainability of the Thai economy. The methodology adopted for this research is the qualitative method. The data has been collected through semi-structured interviews and in-depth interviews, and secondary data has been collected through online and printed sources. The data analysis involves content analysis of the themes that are deduced from the extensive literature review. Furthermore, the data has been analyzed with Strength, Weakness, Opportunity, and Threats (SWOT) to analyze the impacts of internal and external factors on the sustainability of the SMEs. The study's findings divulge a spectrum of challenges spanning cost management intricacies, socio-cultural influences, and economic nuances that collectively impede SME progress. The absence of effective governmental policies, regulations, and actual need assessments of society and the economy results in enhanced vulnerabilities for SMEs. Similarly, the risk perceptions of the SMEs were found to be inaccurate, which led to ineffective cost management strategies and supply chain management during the COVID-19 pandemic. These findings cover the existing literature gap. The research paves the way for further micro-level research into the amalgamated impact of cost management and adequate supply chain management, especially during disruptive events such as the COVID-19 pandemic. Doi: 10.28991/ESJ-2023-07-06-018 Full Text: PDF