A Framework of Factors Influencing Performance of Small and Medium Enterprises (SMES) in Tourism Industry During Covid19 Pandemic ERA

Hanis Afifah Hamdan Azhar,Idris Osman,Wei-Loon Koe

doi:10.6007/ijarbss/v12-i1/12287

Hanis Afifah Hamdan Azhar, Idris Osman + Show 1 more

Open Access

https://doi.org/10.6007/ijarbss/v12-i1/12287

Copy DOI

Abstract

The Movement Control Order (MCO) and travel restrictions enforced to combat the COVID-19 epidemic which have harmed Malaysia's tourist and hospitality industry. Since its emergence in Wuhan, China, it has grown into one of the world's most serious problems. For instance, consider the performance of SMEs in the tourist industry, which has seen a dramatic decline in sales, putting the Visit Malaysia 2020 (VM2020) campaign at danger. Furthermore, cash flow issues, shutdown of operations, layoffs, retrenchment, and weakened businesses' potential for future development were identified as major barriers for SMEs in the tourist industry during this epidemic. Therefore, the goal of this research is to better understand the relationship between stakeholders, CSR, and the performance of small and medium-sized businesses in the tourist industry during the novel COVID-19. This is significant since SMEs account for the majority of existing and new entrants into the tourist sector. To accomplish so, this article used Freeman's stakeholder orientation theory, which includes market orientation (consumer and competitor), employee orientation, and supplier orientation, all of which are influenced by pandemics. We will undertake focused research to investigate how corporate social responsibility (CSR) by Caroll (1991) mediates interactions between stakeholders and SMEs. According to the framework, this analysis could help to boost SMEs tourism in Malaysia during the pandemic and assist managers/owners of SMEs tourism in solving their problems during and after the pandemic. Furthermore, this report emphasised the detrimental influence on Malaysia's tourist and hospitality industries as a result of a catastrophic pandemic disease spreading throughout the world. Despite this, the tourism industry is regarded as the world's fastest-growing economy. Finally, this conceptual analysis will assist the authority in taking further safeguards and determining the appropriate policy to apply in the future. Hence, this framework will contribute valuable evidence for business enterprises in the tourism sector.

Highlights

The services sector is a country's most important economic contributor
Contributions Beyond the importance of the tourism contribution to the economic development, the goal of this study was to examine the relationship between Stakeholder orientation, Corporate Social Responsibility (CSR) and the performance of Small and Medium Enterprises (SME) in tourism sectors during the pandemic of Covid-19
To justify the selection of the stakeholder and CSR practices as factors affecting tourism SMEs performance, we referred to the theoretical frameworks such as stakeholder theory and Carroll’s four-part concepts

Summary

Introduction

The services sector is a country's most important economic contributor. does it rely on hotels, transportation, and food and beverages, but it involves the entrepreneurship of the people. The mediating role of Corporate Social Responsibility (CSR) Caroll (1991) proposed a fundamental definition of CSR as a concept that combines ethical, technical, discretionary, business, and legal anticipation of human communities to commercial organisations as a commitment not just to business and to social welfare as a whole, in light of CSR views In this context, the presence of CSR is dependent on a company's obligation to consider the wellbeing and beneficial commitment of society through legal, economic, and positive business implementation activities that could benefit various stakeholders, such as business professionals, clients, staff, vendors, shareholders, and various community groups, as well as the environment. Tourism companies can distribute scarce capital to improve social welfare, and their attention to shareholder and other stakeholder preferences and requirements (including employees, customers, local populations, and government) has a significant impact on employee attitudes, motivation, and retention, (Supantia and Butcher, 2019). Based on the above discussion, the following model and hypotheses were recommended: Independent Variable (IV)

Firm Performance

Findings

Conclusion and Expected Contributions