Businesses and COVID-19 impact, liquidity issues and failure perceptions: The case of Albania
-
Author(s)Bitila ShoshaLink to ORCID Index: https://orcid.org/0000-0002-9034-1751
,
Romeo ManoLink to ORCID Index: https://orcid.org/0000-0002-9672-5481
,
Armela AnamaliLink to ORCID Index: https://orcid.org/0000-0001-7068-3220
-
DOIhttp://dx.doi.org/10.21511/imfi.19(2).2022.08
-
Article InfoVolume 19 2022, Issue #2, pp. 95-106
- Cited by
- 638 Views
-
271 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
This paper aims to analyze business liquidity perceptions during the Covid-19 lockdown and how the lockdown affected businesses. The research methodology used in this paper consists of a literature review on businesses in the lockdown and an analysis of data collected through a survey conducted in the second quarter of 2020, immediately after the Covid-19 restriction measures were imposed. The sample used contains 180 businesses from a population of 166,386 businesses in Albania, providing a 7.30% error according to the Raosoft calculator. A more in-depth analysis was made by comparison, using box-plots for liquidity issues and problems faced by small, medium and large businesses (SMLEs) during the pandemic. The degree of significance of factors taken into consideration in this study is expressed by Pearson’s Correlation Coefficient (PCC) and an econometric model. The processing and analysis of data was made using SPSS V21. From the analysis of the factors considered and the size of the business, two important conclusions emerge: (1) the exercise of activity for Albanian businesses is closely related to the payments and the business perspective (bankruptcy risk); (2) the fear of bankruptcy was felt more by big business, while medium business had fewer problems referring to all the factors taken into consideration. The econometric model determined the most important factors for assessing the level of impact of Covid-19: Failure Perception, Support from Solidarity Packages, and Cash Reserves Usage. Surprisingly, it is noticed that businesses attribute the use of cash reserves (C.R.U) to different expenses/liabilities compared to the traditional ones treated in this study.
- Keywords
-
JEL Classification (Paper profile tab)M10, L25, G01
-
References45
-
Tables5
-
Figures7
-
- Figure 1. Failure perceptions
- Figure 2. Support from solidarity packages
- Figure 3. Rental payment capacity
- Figure 4. Cash reserves usage
- Figure 5. Costumer correctness
- Figure 6. Covid-19 impact
- Figure 7. Impact of Covid-19 from the point of view of Econometric and Statistical Relationships
-
- Table 1. Variables, respective questions in the questionnaire and answers with their ordinal values
- Table 2. Correlative bivariate relationships between the variables included in the study
- Table 3. Linear regression coefficients with the dependent variable “Covid-19 Impact”
- Table 4. Statistical evaluation table of the suitability of the linear regression model
- Table 5. The selection of significant variables by F-test
-
- Albanian Investment Council (AIC). (2020). Assessment of the Impact of the COVID-19 Pandemic on Business in Albania.
- Amore, M. D., Quarato, F., & Pelucco, V. (2021). Family ownership during the Covid-19 pandemic.
- Anker, T. B. (2021). At the boundary: Post-COVID agenda for business and management research in Europe and beyond. European Management Journal, 39(2), 171-178.
- Bartik, A. W., Bertrand, M., Cullen, Z., Glaeser, E. L., Luca, M., & Stanton, C. (2020). The impact of COVID-19 on small business outcomes and expectations. Proceedings of the National Academy of Sciences, 117(30), 17656-17666.
- Blondel, S., & Vranceanu, R. (2020). COVID-19 mortality and health expenditures across European countries: the positive correlation puzzle.
- Bloom, N., Fletcher, R. S., & Yeh, E. (2021). The impact of COVID-19 on US firms (Working paper No. w28314). National Bureau of Economic Research.
- Brown, C. E., Schwatka, N., Dexter, L., Dally, M., Shore, E., Tenney, L., & Newman, L. S. (2021). The Importance of Small Business Safety and Health Climates during COVID-19. Journal of Occupational and Environmental Medicine, 63(2), 81.
- Buffington, C., Chapman, D., Dinlersoz, E., Foster, L., & Haltiwanger, J. (2021). High Frequency Business Dynamics in the United States During the COVID-19 Pandemic. Mimeo.
- Carracedo, P., Puertas, R., & Martí, L. (2021). Research lines on the impact of the COVID-19 pandemic on business. A text mining analysis. Journal of Business Research, 132, 586-593.
- Cepel, M., Gavurova, B., Dvorský, J., &Belas, J. (2020). The impact of the COVID-19 crisis on the perception of business risk in the SME segment. Journal of International Studies.
- Coombs, W. T., & Holladay, S. J. (2002). Helping crisis managers protect reputational assets: Initial tests of the situational crisis communication theory. Management Communication Quarterly, 16(2), 165-186.
- Cortez, R. M., & Johnston, W. J. (2020). The Corona virus crisis in B2B settings: Crisis uniqueness and managerial implications based on social exchange theory. Industrial Marketing Management, 88, 125-135.
- Cowling, M., Brown, R., & Rocha, A. (2020). Did you save some cash for a rainy COVID-19 day? The crisis and SMEs. International Small Business Journal, 38(7), 593-604.
- Craven, M., Liu, L., Mysore, M., & Wilson, M. (2020). COVID-19: Implications for business. McKinsey & Company.
- Dauti, M. B., & Dauti, R. (2020). Challenges of Small and Medium Businesses During the Covid-19 Pandemic. Knowledge International Journal, 43(10), 143-149.
- Ding, W., Levine, R., Lin, C., & Xie, W. (2021). Corporate immunity to the COVID-19 pandemic. Journal of Financial Economics, 141(2), 802-830.
- Fasth, J., Elliot, V., & Styhre, A. (2021). Crisis management as practice in small and medium-sized enterprises during the first period of COVID-19. Journal of Contingencies and Crisis Management, 1-10.
- Gourinchas, P. O., Kalemli-Özcan, Ṣ., Penciakova, V., & Sander, N. (2021). COVID-19 and SMEs: A 2021”Time Bomb”? (No. w28418). National Bureau of Economic Research.
- Guerini, M., Nesta, L., Ragot, X., & Schiavo, S. (2020). Firm liquidity and solvency under the Covid-19 lockdown in France. OFCE Policy Brief, 76.
- Haltiwanger, J. C. (2021). Entrepreneurship During the COVID-19 Pandemic: Evidence from the Business Formation Statistics (No. w28912). National Bureau of Economic Research.
- Hao, F., Xiao, Q., & Chon, K. (2020). COVID-19 and China’s hotel industry: Impacts, a disaster management framework, and post-pandemic agenda. International Journal of Hospitality Management, 90, 102636.
- INSTAT. (2021). Industry Trade and Services.
- Kalogiannidis, S. (2020). Covid Impact on Small Business. International Journal of Social Science and Economics Invention, 6(12), 387-391.
- Kroeger, T., Nguyen, A. T. N., Zhang, Y., Minh, N. H., Thuy, P. D., & Tuan, D. D. (2020). Corporate Vulnerabilities in Vietnam and Implications of COVID-19.
- Kumar, M. S., Maheshwari, V., Prabhu, J., Prasanna, M., Jayalakshmi, P., Suganya, P., Benjula Anbu Malar, M. B., & Jothikumar, R. (2020). Social economic impact of COVID-19 outbreak in India. International Journal of Pervasive Computing and Communications, 16(4), 309-319.
- Kumar, Mr. Anuj., & Ayedee, Dr. Nishu. (2021). Technology Adoption: A Solution for SMEs to Overcome Problems during COVID-19. Forthcoming, Academy of Marketing Studies Journal, 25(1).
- Leka, B. (2020). An overview of the pandemic impact in the economy of Albania. Romanian Economic Journal, 23(8), 2-12.
- Liu, Y., Peng, M., Wei, Z., Xu, J., & Xu, L. C. (2021). Organizational Resources, Country Institutions, and National Culture behind Firm Survival and Growth during COVID-19.
- Meyer, B. H., Prescott, B., & Sheng, X. S. (2021). The impact of the COVID-19 pandemic on business expectations. International Journal of Forecasting, 1-16.
- Mucha, S. (2020). Ethnic Albanian family businesses and COVID-19 pandemic: a gender-based comparison. Journal of Family Business Management, ahead-of-print.
- Ncube, C. N. (2020). The impact of COVID-19 on MSMEs in Developing Countries.
- Niehus, R., De Salazar, P. M., Taylor, A., & Lipsitch, M. (2020). Quantifying bias of Covid-19 prevalence and severity estimates in Wuhan, China that depend on reported cases in international travelers.
- OECD. (2020). The COVID-19 Crisis in Albania. Update 30 July 2020.
- OECD. (2021). The Covid-19 Crisis in Albania.
- Pratama, V., Santoso, I., & Mustaniroh, S. A. (2021). Development strategy of SMEs in the new normal era of coronavirus disease 2019 (COVID-19): A literature review. IOP Conference Series: Earth and Environmental Science, 733(1), 1-7.
- Ratten, V. (2021). COVID-19 and entrepreneurship: Future research directions. Strategic Change, 30(2), 91-98.
- Schivardi, F., & Guido, R. (2020). A simple method to estimate firms’ liquidity needs during the Covid-19 crisis with an application to Italy. COVID Economics, 51-69.
- Skendaj, E., Lame, R., & Gardinier, M. (2021). National Security vs Protection of Human Rights in Emergency, Westminster Foundation for Democracy.
- Tsilika, T., Kakouris, A., Apostolopoulos, N., & Dermatis, Z. (2020). Entrepreneurial bricolage in the aftermath of a shock. Insights from Greek SMEs. Journal of Small Business &Entrepreneurship, 32, 1-18.
- Wang, Y., Hong, A., Xia, A., Li, X., & Jia 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.
- Ween, H., Wei, Y., & Wang, S. (2020). Survey on Impact of COVID-19. Report on the impact of COVID-19 crisis on the business management.
- Xhajanka, E. (2020). The Bank of Albania approves the measures for the postponement of loan instalments until August 31, 2020.
- Yeganeh, H. (2021). Emerging social and business trends associated with the Covid-19 pandemic. Critical Perspectives on International Business, 17(2), 188-209.
- Zimon, G., & Tarighi, H. (2021). Effects of the COVID-19 global crisis on the working capital management policy: Evidence from Poland. Journal of Risk and Financial Management, 14(4), 169.
- Zou, P., Huo, D., & Li, M. (2020). The impact of the COVID-19 pandemic on firms: a survey in Guangdong Province, China. Global Health Research and Policy, 5(1), 110.
-
How do commitment-based HRM practices and a developmental culture interact to foster open innovation in SMEs?
Elona Cera ,
Roland Subashi
doi: http://dx.doi.org/10.21511/ppm.22(1).2024.20
Problems and Perspectives in Management Volume 22, 2024 Issue #1 pp. 231-243 Views: 334 Downloads: 54 TO CITE АНОТАЦІЯThis paper aims to bring new insights into the role of commitment-based human resource management practices in open innovation in small and medium-sized enterprises. Additionally, the goal is to enhance comprehension of the aforementioned interactions by considering the mediating effect of developmental culture. Data were collected from owners and managers of 131 small and medium-sized enterprises operating in the service and manufacturing sectors in Albania. The study employed a quantitative research instrument, namely online surveys. To yield results and extract figures, the study applied partial least squares-structural equation modeling, examining the interrelationships among constructs. The empirical results highlight the direct effects of commitment-based human resource management practices and developmental culture on open innovation. Specifically, the study reveals that commitment-based human resource management practices have a significant role in promoting open innovation (O = 0.598, t = 10.057, p = 0.000). Additionally, the findings indicate that developmental culture serves as a complementary factor by mediating the connection between commitment-based human resource management practices and open innovation (O = 0.136, t = 1.789, p = 0.037). This study draws the attention of business owners and strategy developers circumnavigating the Albanian small and medium-sized enterprises environment. Barring certain limitations, it enthralls their propensity toward innovation, aligning it with an enabling business culture.
Acknowledgment
This work is supported by Tomas Bata University internal grants, FaME TBU No. IGA/FaME/2023/012 “Closed and open innovation: role of human resource, servant leadership, digitalization, and uncertainty.”
