"Organizational resilience and impacts of the COVID-19 pandemic on Philippine businesses"

Written by Rene Estremera. Posted in News

Organizational resilience and impacts of the COVID-19 pandemic on Philippine businesses

by Glory Dee A. Romo, Jon Marx P. Sarmiento, Francis Levi A. Durano, Imee Marie A. Acopiado, Thaddeus R. Acuña, Adonis M. Traje, and Geraliza D. Wahing

School of Management, University of the Philippines Mindanao, Davao City, Philippines

The COVID-19 pandemic has had global repercussions as many countries embarked on measures such as mobility restrictions to avoid the further spread of the virus. This has led to reduced economic activities worldwide across all industries. The pandemic has negatively impacted enterprises such as in the form of increasing costs, reducing sales, and labor-related challenges including remuneration or retrenchment. Through a mixed-method analysis using fuzzy set Qualitative Comparative Analysis (fsQCA), we analyzed the asymmetric relationship between organizational resilience attributes and costs, sales, and the number of employees among Filipino enterprises.  This paper used the Benchmark Resiliency Tool (BRT) developed by Resilient Organisations which includes 13 organizational resilience indicators. Data from key officers of the 293 enterprises all over the Philippines participated in the survey through Google Forms. The resilience indicators were grouped according to their three main attributes, namely, leadership and culture, networks, and readiness to change. The results revealed that high practice of change-ready attributes such as the enactment of planning strategies is a key factor that resulted in the reduction of the employee count among enterprises during the COVID-19 pandemic. Conjoining this attribute with either low leadership or with low network makes an enterprise more likely to reduce employees. Thus, being ready for changes, especially during times of unexpected and unpredictable situations such as the COVID-19 pandemic is a critical component of adaptation.  Overall, our results showed that enterprises that practice a single organizational resilience attribute (at a high level) are associated with encountering either higher costs or sales decreases during the COVID-19 pandemic. Owing to their similar results, both increased costs and reduced sales of the enterprises show that in totality, the practice of organizational resilience attributes is crucial during external shocks, especially since the COVID-19 pandemic has led to a challenging environment for enterprises to operate.  Reducing the number of employees may be used by crisis-stricken enterprises as a short-term strategy for recovery and how remuneration can instead be implemented to avoid the cascading negative effects of retrenchment on an employee’s household. Financial performance is used as a basis of enterprises’ strategies, and in extreme cases, retrenchment might be among the only viable solutions for the survival of a business during crises.  There is a need for regular employee-employer consultation for more labor-friendly actions that are also more likely to be implemented in addition to empowering employees with the current situation of the enterprises. Moreover, the rise of online methods of purchasing may indicate an opportunity for businesses to invest in online sales infrastructure. Combining conventional modes of selling with online methods may increase the sales potential of enterprises.

"Women-led Firms and Innovation: Evidence from Philippine Enterprise Survey"

Written by Rene Estremera. Posted in News

"Women-led Firms and Innovation: Evidence from Philippine Enterprise Survey" by Imee Marie A. Acopiado, Jon Marx P. Sarmiento, Glory Dee A. Romo, and Thaddeus R. Acuña
School of Management
University of the Philippines Mindanao
Davao City 8000 Philippines
Keywords: enterprise survey, gender, innovation, logit, women
The Philippines ranked 17th in the world in terms of the global gender gap and second in the Asia Pacific region. Despite the pandemic, Filipino women are occupying senior leadership positions at 48%, which is considered the highest in the world. On the other hand, the country ranked 50th in the global innovation index. Hence, this research explored the link between women-led firms and innovation. Using 497 valid samples from 1,335 firms that participated in the Philippine Enterprise Survey in 2015, four models of innovation were analyzed using the logit model. These firm-level innovations refer to 1) products or services, 2) methods of production, 3) logistics, delivery and distribution, and 4) supporting services. Results suggest that women-led firms are more likely to adopt product and logistics innovations while the high share of women skilled non-production workers including managers, administration and sales may likely lead to innovative methods of production. In contrast, the high share of women skilled production workers negatively affects innovation in supporting services. Other drivers of innovation include share of largest owner, foreign-owned licensed technology, annual sales, direct exports, material inputs from foreign origin, number of non-production workers, capacity utilization, and hours of operation. Thus, while women in leadership roles positively impact innovation, the high composition of women involved in supporting activities such as maintenance systems, purchasing, accounting and computing operations may hinder innovation growth. To close the gender gap in innovation, firms may need to focus on increasing the participation of women in providing innovative solutions at the production level, particularly those involved in delivering support services.

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