The impact of social distancing policy on small and medium-sized enterprises (SMEs) in Indonesia
-
Author(s)Muhtar LutfiLink to ORCID Index: https://orcid.org/0000-0002-1648-9555
,
Pricylia Chintya Dewi BuntuangLink to ORCID Index: http://orcid.org/0000-0001-5351-2307
,
Yoberth KorneliusLink to ORCID Index: https://orcid.org/0000-0003-0747-0438
,
ErdiyansyahLink to ORCID Index: https://orcid.org/0000-0001-8037-8959
,
Bakri HasanuddinLink to ORCID Index: https://orcid.org/0000-0002-2830-911X
-
DOIhttp://dx.doi.org/10.21511/ppm.18(3).2020.40
-
Article InfoVolume 18 2020, Issue #3, pp. 492-503
- Cited by
- 3787 Views
-
1360 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
This study aims to investigate the impact of social distancing policies on SMEs in Indonesia. It used a quantitative method with a survey design. Respondents were all SMEs in Indonesia that are affected by social distancing policies during the COVID-19 pandemic. It involved a total of 587 SME samples selected randomly. The data were collected through observations, questionnaires, and literature studies. The collected data were analyzed using descriptive statistics with SPSS software to determine the mean value. The result showed that social distancing policies affect SMEs during the COVID-19 pandemic. This is indicated by the decreasing income and demand for SMEs products, and even some have no income (mean values of 2.40) due to the social distancing policies. Besides, the policy’s impact is also shown in the increasing cost of raw materials and production costs due to supply chain problems (mean values of 4.79). The policy’s impact raises anxiety for SMEs to survive so that business actors change their plans by utilizing information technology (mean values of 4.81). This change is a strategy to survive due to the impact of the applied policies. Although social distancing policies affect SMEs’ survival during the pandemic, research findings show that SMEs in Indonesia did not terminate employment (mean values of 4.37) due to the presence of economic stimulus policies that helped SMEs survive and grow during the COVID-19 pandemic.
- Keywords
-
JEL Classification (Paper profile tab)L26, M21
-
References53
-
Tables1
-
Figures2
-
- Figure 1. Theoretical framework
- Figure 2. Characteristics of respondents
-
- Table 1. Descriptive statistics
-
- Ahmed, F., Zviedrite, N., & Uzicanin, A. (2018). Effectiveness of workplace social distancing measures in reducing influenza transmission: A systematic review. BMC Public Health, 18(1), 518.
- Anderson, R. M., Heesterbeek, H., Klinkenberg, D., & Hollingsworth, T. D. (2020). How will country-based mitigation measures influence the course of the COVID-19 epidemic? The Lancet, 395(10228), 931-934.
- Barrot, J.-N., Grassi, B., & Sauvagnat, J. (2020). Sectoral Effects of Social Distancing (SSRN Scholarly Paper ID 3569446). Social Science Research Network.
- Bartik, A. W., Bertrand, M., Cullen, Z. B., Glaeser, E. L., Luca, M., & Stanton, C. T. (2020a). How Are Small Businesses Adjusting to COVID-19? Early Evidence from a Survey (Working Paper No. 26989; Working Paper Series). National Bureau of Economic Research.
- Bartik, A. W., Bertrand, M., Cullen, Z., Glaeser, E. L., Luca, M., & Stanton, C. (2020b). The impact of COVID-19 on small business outcomes and expectations. Proceedings of the National Academy of Sciences, 117(30), 17656-17666.
- Baum, N. M., Jacobson, P. D., & Goold, S. D. (2009). “Listen to the People”: Public Deliberation About Social Distancing Measures in a Pandemic. The American Journal of Bioethics, 9(11), 4-14.
- Brussevich, M., Dabla-Norris, E., & Khalid, S. (2020a, June 15). Effects of lockdowns around world likely to have lasting impact. Irish Sun.
- Brussevich, M., Dabla-Norris, E., & Khalid, S. (2020b). Who will Bear the Brunt of Lockdown Policies? Evidence from Tele-workability Measures Across Countries (IMF Working Papers, 20/88).
- Brynjolfsson, E., Horton, J. J., Ozimek, A., Rock, D., Sharma, G., & TuYe, H.-Y. (2020). COVID-19 and Remote Work: An Early Look at US Data (Working Paper No. 27344; Working Paper Series). National Bureau of Economic Research.
- Cauchemez, S., Ferguson, N. M., Wachtel, C., Tegnell, A., Saour, G., Duncan, B., & Nicoll, A. (2009). Closure of schools during an influenza pandemic. The Lancet Infectious Diseases, 9(8), 473-481.
- Clerkin, K. J., Fried, J. A., Raikhelkar, J., Sayer, G., Griffin, J. M., Masoumi, A., Jain, S. S., Burkhoff, D., Kumaraiah, D., Rabbani, L., Schwartz, A., & Uriel, N. (2020). COVID-19 and Cardiovascular Disease. Circulation, 141(20), 1648-1655.
- Dev, S. M., & Sengupta, R. (2020). Covid-19: Impact on the Indian economy. Indira Gandhi Institute of Development Research, Mumbai.
- Doshi, H., Kumar, P., & Yerramilli, V. (2017). Uncertainty, Capital Investment, and Risk Management. Management Science, 64(12), 5769-5786.
- Fadila, R. U. (2020, May 9). 1.785 Koperasi dan 163.713 UMKM Terdampak Pandemi Covid-19 – Pikiran-Rakyat.com.
- Farboodi, M., Jarosch, G., & Shimer, R. (2020). Internal and external effects of social distancing in a pandemic. National Bureau of Economic Research.
- Ferguson, N. M., Cummings, D. A. T., Cauchemez, S., Fraser, C., Riley, S., Meeyai, A., Iamsirithaworn, S., & Burke, D. S. (2005). Strategies for containing an emerging influenza pandemic in Southeast Asia. Nature, 437(7056), 209-214.
- Ferguson, N. M., Cummings, D. A. T., Fraser, C., Cajka, J. C., Cooley, P. C., & Burke, D. S. (2006). Strategies for mitigating an influenza pandemic. Nature, 442(7101), 448-452.
- Garrett, T. A. (2008). Pandemic economics: The 1918 influenza and its modern-day implications. Federal Reserve Bank of St. Louis Review, 90, 75-94.
- Glass, R. J., Glass, L. M., Beyeler, W. E., & Min, H. J. (2006). Targeted Social Distancing Designs for Pandemic Influenza. Emerging Infectious Diseases, 12(11), 1671-1681.
- Gray, R. S. (2020). Agriculture, transportation, and the COVID-19 crisis. Canadian Journal of Agricultural Economics/Revue Canadienne d’agroeconomie, 68(2), 239-243.
- Gustavsson, S., & Larsson, S. (2020). Marketing Innovation for SMEs during COVID-19 Pandemic: A case study of the hospitality industry in Norrbotten.
- Herbane, B. (2010). Small business research: Time for a crisis-based view. International Small Business Journal, 28(1), 43-64.
- Huang, C., Wang, Y., Li, X., Ren, L., Zhao, J., Hu, Y., Zhang, L., Fan, G., Xu, J., Gu, X., Cheng, Z., Yu, T., Xia, J., Wei, Y., Wu, W., Xie, X., Yin, W., Li, H., Liu, M., … Cao, B. (2020). Clinical features of patients infected with 2019 novel coronavirus in Wuhan, China. The Lancet, 395(10223), 497-506.
- Imai, N., Gaythorpe, K. A. M., Abbott, S., Bhatia, S., van Elsland, S., Prem, K., Liu, Y., & Ferguson, N. M. (2020). Adoption and impact of non-pharmaceutical interventions for COVID-19. Wellcome Open Research, 5, 59.
- Ivanov, D. (2020). Predicting the impacts of epidemic outbreaks on global supply chains: A simulation-based analysis on the coronavirus outbreak (COVID-19/SARS-CoV-2) case. Transportation Research Part E: Logistics and Transportation Review, 136, 101922.
- Javed, S. A., & Ayaz, M. U. (2020). PROJECTED IMPACT OF LOCKDOWN ON SMEs IN PAKISTAN. Sustainable Development Policy Institute; JSTOR.
- Jones, C. J., Philippon, T., & Venkateswaran, V. (2020). Optimal mitigation policies in a pandemic: Social distancing and working from home. National Bureau of Economic Research.
- Kayalica, M. O. (2020, May 12). World against COVID-19. Our colleagues’ thoughts about the situation: M. Ozgur Kayalica.
- Lee, N., Sameen, H., & Cowling, M. (2015). Access to finance for innovative SMEs since the financial crisis. Research Policy, 44(2), 370-380.
- Lewnard, J. A., & Lo, N. C. (2020). Scientific and ethical basis for social-distancing interventions against COVID-19. The Lancet Infectious Diseases, 20(6), 631-633.
- Lu, Y., Wu, J., Peng, J., & Lu, L. (2020). The perceived impact of the Covid-19 epidemic: Evidence from a sample of 4807 SMEs in Sichuan Province, China. Environmental Hazards, 19(4), 323-340.
- Mishra, P., Pandey, C. M., Singh, U., Gupta, A., Sahu, C., & Keshri, A. (2019). Descriptive Statistics and Normality Tests for Statistical Data. Annals of Cardiac Anaesthesia, 22(1), 67-72.
- Nicola, M., Alsafi, Z., Sohrabi, C., Kerwan, A., Al-Jabir, A., Iosifidis, C., Agha, M., & Agha, R. (2020). The socio-economic implications of the coronavirus pandemic (COVID-19): A review. International Journal of Surgery, 78, 185-193.
- Nyanga, T., & Zirima, H. (2020). Reactions of small to medium enterprises in masvingo, zimbabwe to covid 19: Implications on productivity. Business Excellence and Management, 10(1), 22-32.
- OECD. (2020a, June). OECD Economic Outlook, June 2020. The world economy on a tightrope.
- OECD. (2020b, July 15). Coronavirus (COVID-19): SME policy responses.
- Omar, A. R. C., Ishak, S., & Jusoh, M. A. (2020). The impact of Covid-19 Movement Control Order on SMEs’ businesses and survival strategies. Geografia-Malaysian Journal of Society and Space, 16(2), 2.
- Papadopoulos, T., Baltas, K. N., & Balta, M. E. (2020). The use of digital technologies by small and medium enterprises during COVID-19: Implications for theory and practice. International Journal of Information Management, 102192.
- Psillaki, M., & Eleftheriou, K. (2015). Trade Credit, Bank Credit, and Flight to Quality: Evidence from French SMEs. Journal of Small Business Management, 53(4), 1219-1240.
- Reluga, T. C. (2010). Game Theory of Social Distancing in Response to an Epidemic. PLOS Computational Biology, 6(5), e1000793.
- Saidu, M., & Aifuwa, H. O. (2020). Coronavirus Pandemic in Nigeria: How Can Small and Medium Enterprises (SMEs) Cope and Flatten the Curve. European Journal of Accounting, Finance and Investment, 6(5), 55-61.
- Santia, T. (2020, April 15). Beda Kondisi UMKM Saat Pandemi Corona di 2020 dengan Krisis Ekonomi 1998.
- Syafri, H., Sangadji, E., & Utami, R. R. M. (2020). Impact Analysis of the Large-Scale Social Restrictions (PSBB) Policy Implementation in Jakarta. Journal of Indonesian Health Policy and Administration, 5(2), 57-60.
- Thompson, C. B. (2009). Descriptive data analysis. Air Medical Journal, 28(2), 56-59.
- Thorgren, S., & Williams, T. A. (2020). Staying alive during an unfolding crisis: How SMEs ward off impending disaster. Journal of Business Venturing Insights, 14, e00187.
- Wang, Y., Hong, A., Li, X., & Gao, J. (2020). Marketing innovations during a global crisis: A study of China firms’ response to COVID-19. Journal of Business Research, 116, 214-220.
- Weill, J. A., Stigler, M., Deschenes, O., & Springborn, M. R. (2020). Social distancing responses to COVID-19 emergency declarations strongly differentiated by income. Proceedings of the National Academy of Sciences, 117(33), 19658-19660.
- Wilder-Smith, A., & Freedman, D. O. (2020). Isolation, quarantine, social distancing and community containment: Pivotal role for old-style public health measures in the novel coronavirus (2019-nCoV) outbreak. Journal of Travel Medicine, 27(2).
- Winarsih, Indriastuti, M., & Fuad, K. (2020). Impact of Covid-19 on Digital Transformation and Sustainability in Small and Medium Enterprises (SMEs): A Conceptual Framework. In L. Barolli, A. Poniszewska-Maranda, & T. Enokido (Eds.), Complex, Intelligent and Software Intensive Systems (pp. 471-476). Springer International Publishing.
- World Health Organization. (2020). Modes of transmission of virus causing COVID-19: Implications for IPC precaution recommendations: scientific brief.
- Yi, V. Z. (2020). Struggle of Malaysian SMEs During the COVID-19 Pandemic. KSI Strategic Institute for Asia Pacific.
- Zachariadis, M., Ozcan, P., & Dinçkol, D. (2020). The Covid-19 impact on fintech: Now is the time to boost investment. LSE Business Review.
- Zu, Z. Y., Jiang, M. D., Xu, P. P., Chen, W., Ni, Q. Q., Lu, G. M., & Zhang, L. J. (2020). Coronavirus Disease 2019 (COVID-19): A Perspective from China. Radiology, 296(2), E15-E25.
-
The impact of COVID-19 on the transportation and logistics industry
Dalia Perkumiene ,
Agbonmere Osamede ,
Regina Andriukaitienė ,
Olegas Beriozovas
doi: http://dx.doi.org/10.21511/ppm.19(4).2021.37
Problems and Perspectives in Management Volume 19, 2021 Issue #4 pp. 458-469 Views: 6450 Downloads: 10177 TO CITE АНОТАЦІЯIn this present age of globalization, the logistics and transportation industry has become an integral part of most businesses/firms as it is aimed at ensuring the effective movement of people, distribution of goods and services from one location to another on time. Therefore, this paper aims to analyze the impact of COVID-19 on the logistics and transportation sectors. The qualitative research approach was adopted using analysis and synthesis of scientific literature, data from news reports, organizational sites, and a case study of data contents. The paper presented the analysis of negative and positive effects of COVID-19 on the logistics and transportation industry. The study also discusses possible strategies and further steps for improvement of the logistics and transportation sector, including the automation and introduction of other technologies, a sustainable and flexible transportation system, cooperation of logistics and transportation business. Findings regarding the positive implications of COVID-19 show noticeable advancements in the logistics and transportation sector, such as the rise of e-commerce businesses with efficient delivery options, and the development of 3rd party logistics services as more companies outsource supply chain operations. The study revealed the importance of strategic planning with a joint effort from the research centers, public sector, private sector, and educational institutions as one of the proposed solutions for the logistics and transportation industry.
-
The impact of the COVID-19 pandemic on retailer performance: empirical evidence from India
Amgad S.D. Khaled ,
Nabil Mohamed Alabsy ,
Eissa A. Al-Homaidi 
,
Abdulmalek M.M. Saeed
doi: http://dx.doi.org/10.21511/im.16(4).2020.11
Innovative Marketing Volume 16, 2020 Issue #4 pp. 129-138 Views: 3462 Downloads: 5876 TO CITE АНОТАЦІЯThe study aims to synthesize the challenges that retailers are facing during the COVID-19 emergency. The research is definitive, informative, and based on a single design of cross-sectional research. Quantitative data based on the research instrument were produced (a questionnaire). Five hundred responses were collected from employees of major retail stores in India. Retailer performance is considered a dependent variable, whereas employee well-being, customer and brand protection, use of technology, government policies, and supply chain are used as independent variables. The current study results indicated that employee well-being and government policies have a significant positive impact on retailer performance, while customer and brand protection, use of technology, and supply chain have a significant positive impact on retailers’ performance. This study will help retailers develop strategies for their employees to protect them and understand that technology is needed in the new normal times. This study highlights the need to be flexible in executing strategic strategies, but retailers need to develop comprehensive action plans, including selecting managers of initiative and defining goals and deadlines. Provided that retailers’ current reality is different from the old normal, no time is lost in taking audacious action.
-
The impact of quarantine due to COVID-19 pandemic on the tourism industry in Lviv (Ukraine)
Mykhailo Rutynskyi ,
Halyna Kushniruk
doi: http://dx.doi.org/10.21511/ppm.18(2).2020.17
Problems and Perspectives in Management Volume 18, 2020 Issue #2 pp. 194-205 Views: 3030 Downloads: 1206 TO CITE АНОТАЦІЯThe global crisis caused by COVID-19 pandemic and the introduction of long-term international quarantine measures have had a very negative impact on the tourism industry. The paper aims to analyze the sectoral losses of the tourism industry during quarantine due to the COVID-19 pandemic in Lviv, a city whose historical center is included in the UNESCO World Heritage Site. The article highlights the potential of the tourism industry before the introduction of quarantine measures, as well as using extrapolation methods estimates the economic losses of the tourist industry of Lviv in the conditions of long-term quarantine. Besides, the anti-crisis measures of the city authorities to minimize the impact of quarantine due to COVID-19 pandemic on the tourism industry of Lviv are described. Based on a statistical analysis of the forecasted economic losses, it is recommended that city authorities abolish some local taxes and fees in the tourism sector to restore its potential as soon as possible.
