Abstract
This study looked at the impact of the Coronavirus Disease 2019 (COVID-19) pandemic on the revenues of small businesses operating in industrial sectors and at the extent to which these businesses changed or adjusted their business activity, or changed the extent to which they utilized open innovation tools and implement innovation promotion processes. The findings show that, despite COVID-19’s far-reaching impact in all areas of life, the revenues of most small businesses in industrial sector were not adversely affected by the pandemic, and most of them did not change or adjust their business activities or the extent to which they employed open innovation tools and engage in innovation promotion processes. The findings also indicate that small businesses, most of whose revenues derive from subcontracting work to other businesses business to business (B2B) and from long-term agreements, are likely to cope better during periods of economic difficulty and under conditions of economic uncertainty. The findings also show that businesses that are active in the international markets have succeeded in adapting that activity to the changing demands and various trade restrictions. This study’s theoretical contribution lies in its focus on small businesses in the industrial sector and its examination of how the subcontracting strategy and international operations help such businesses contend with problems and conditions of economic uncertainty. On the practical plane, the findings suggest that policymakers should foster programmes that assist small businesses with these work strategies, which can help them survive, enhance their stability and thereby also promote the economy’s ability to withstand crisis situations
Highlights
Small businesses are likely to be severely affected, as they tend to be more concentrated in sectors that have been directly affected by the COVID-19 response measures and are typically more credit constrained than larger businesses (Cao & Leung, 2020; Kumar & Francisco, 2005)
The study is structured as follows: first, we present a short literature review, including information and data on the COVID-19 epidemic, provide background to innovation in small businesses and insights regarding open innovation tools utilized by small businesses, sharing processes and cultural processes
We looked at the relationship between a business’ rate of revenue from subcontracting work/export sales and its change in revenue/the extent of business activity changes or adjustments that the business had to make during the COVID-19 period
Summary
In December 2019, the global health crisis caused by the Coronavirus Disease 2019 (COVID-19) pandemic began in China (Akpan et al, 2020a; CDC, 2020; Huang et al, 2020; Ting et al, 2020), catching the world unawares and unprepared and causing significant havoc to business activities, with serious adverse effects on small businesses (Akpan et al, 2020b; Humphries et al, 2020).Global Business ReviewSmall businesses are likely to be severely affected, as they tend to be more concentrated in sectors that have been directly affected by the COVID-19 response measures (e.g., retail and services) and are typically more credit constrained than larger businesses (Cao & Leung, 2020; Kumar & Francisco, 2005). Small businesses comprise the majority of companies in the economy and are responsible for a substantial share of employment (Humphries et al, 2020). In light of COVID-19’s far-reaching impact on all areas of life, and especially on the economy and the business sector, the aim of the present study was to investigate the pandemic’s effect on the scope of operations and the revenues of small businesses in industrial sectors, and the extent to which adjustments or changes were made to business activities in order to cope with the new challenges of this period
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