COVID-19 Pandemic and Small-Scale Industries in a Local Geographic Space of Nigeria: An Assessment of the Impact of Strategic Interfirm Alliance

Abstract

The outbreak of Coronavirus pandemic has brought with it stagnation in all sectors of the economy, unemployment and loss of jobs, threats of recession, and annihilation of industries across the world. This paper examined the impact of strategic interfirm alliance on small-scale industries (SSI) amid the threat of COVID-19 pandemic in Nsukka, a local geographic space in Nigeria. A survey research design and a questionnaire survey of 82 SSIs were used in the paper. The data for the paper were analyzed using descriptive statistics while tables and percentages were used to illustrate the results. Results in the study revealed that 15.47%, 22.45%, and 44.20% of the respondents have experienced relative increase, increased, and significant increase, respectively, in COVID-19-induced challenges on their operations. The paper also showed that 24.81%, 25.01%, and 34.64% of the industries have experienced relative increase, increase, and significant increase, respectively, in their operations following their use of alliance, while 5.06% and 10.48% have experienced relative and significant decreases. The paper suggests that SSIs in Nigeria should adopt/institutionalize the use of strategic interfirm alliance in their operations in order to survive the COVID-19-induced challenges which have distrupted their production flow.

Do industries' structural attributes/characteristics influence their decision to utilize strategic alliances?

“…Similarly, Nwokocha et al (2021) in their studies discovered that 24.81 percent, 25.01 percent, and 34.64 percent of the surveyed small scale industries saw relative increases, increases, and significant increases in their operations following the use of strategic alliance, while 5.06 percent and 10.48 percent had relative and significant decreases. Nwokocha and Madu (2021) also discovered that the need to accomplish "cost reduction, risk reduction, and resource accessibility" drives strategic alliance formation, rather than the spatial distribution of small and medium scale industries. Studies have also shown that strategic partnerships have a positive impact on the performance of the Nigerian telecommunication.…”