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Explaining COVID-19 shock wave mechanism in the European service industry using convergence clubs analysis

Author

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  • Marinko Skare

    (Juraj Dobrila University of Pula)

  • Domingo Riberio Soriano

    (University of Alcala)

Abstract

The impact of COVID-19 on the economy and business is a major issue. We define convergence clubs as countries with the same impact of COVID-19 on service turnover by using a convergence algorithm for testing and clustering. We repeat the procedure in the hospitality and food industry, information and communication, transport, and storage. The impact of COVID-19 on each convergence club identified in the study varies empirically. The findings suggest that the impact of COVID-19 varies between countries and industries depending on the firm’s agility, innovation, ownership, digital adoption, customer perception, pandemic status, and state financial assistance of companies.

Suggested Citation

  • Marinko Skare & Domingo Riberio Soriano, 2022. "Explaining COVID-19 shock wave mechanism in the European service industry using convergence clubs analysis," Service Business, Springer;Pan-Pacific Business Association, vol. 16(2), pages 283-307, June.
    • Handle: RePEc:spr:svcbiz:v:16:y:2022:i:2:d:10.1007_s11628-021-00471-8
    DOI: 10.1007/s11628-021-00471-8
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    More about this item

    Keywords

    COVID-19; Service industry; Convergence; Turnover; European Union;
    All these keywords.

    JEL classification:

    • L8 - Industrial Organization - - Industry Studies: Services
    • L88 - Industrial Organization - - Industry Studies: Services - - - Government Policy
    • N70 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - General, International, or Comparative
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology

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