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The challenges of COVID-19 control policies for sustainable development of business: Evidence from service industries

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  • Chen, Ji
  • Huang, Jiayan
  • Su, Weihua
  • Štreimikienė, Dalia
  • Baležentis, Tomas

Abstract

Such large-scale disruptions as the pandemic increase the uncertainty and risk related to business. Therefore, the business continuity management (BCM) has become an essential technical solution for enterprise emergency response. Since the beginning of 2020, the COVID-19 has spread worldwide at an alarming rate causing many threats to sustainable development of the business sector. The decline in consumer demand has hugely impacted service industries, such as wholesale and retail sales, tourism. Enterprise production and operations have faced severe challenges. In this study, we develop a risk factor analysis of BCM under the presence of COVID-19 in China. Based on a statistical survey of 940 enterprises in Hangzhou City, China, this study employs ordinal logistic regression to explore the hindering effect of risk factors introduced by the epidemic on business performance. Then, the interpretive structure model (ISM) is applied to analyze the hierarchical structure of the factors under examination. The key factors influencing the enterprise production and operation during COVID-19 outbreak significantly differ across the sub-sectors of the service industry. Therefore, this paper assesses the resilience of the productive technologies and business models of different industries amid the pandemic. This paper proposes epidemic prevention and control strategy focusing on investment and government regulation to ensure sustainable business development.

Suggested Citation

  • Chen, Ji & Huang, Jiayan & Su, Weihua & Štreimikienė, Dalia & Baležentis, Tomas, 2021. "The challenges of COVID-19 control policies for sustainable development of business: Evidence from service industries," Technology in Society, Elsevier, vol. 66(C).
    • Handle: RePEc:eee:teinso:v:66:y:2021:i:c:s0160791x21001184
    DOI: 10.1016/j.techsoc.2021.101643
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    Cited by:

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    2. An-Chi Wu & Duc-Dinh Kao, 2022. "Mapping the Sustainable Human-Resource Challenges in Southeast Asia’s FinTech Sector," JRFM, MDPI, vol. 15(7), pages 1-26, July.
    3. Marinho, Marcelo & Amorim, Luís & Camara, Rafael & Oliveira, Brigitte Renata & Sobral, Marcos & Sampaio, Suzana, 2021. "Happier and further by going together: The importance of software team behaviour during the COVID-19 pandemic," Technology in Society, Elsevier, vol. 67(C).
    4. Hermundsdottir, Fanny & Haneberg, Dag Håkon & Aspelund, Arild, 2022. "Analyzing the impact of COVID-19 on environmental innovations in manufacturing firms," Technology in Society, Elsevier, vol. 68(C).
    5. Liu, Zhixue & Ding, Ronggui & Wang, Lei & Song, Rui & Song, Xinyi, 2023. "Cooperation in an uncertain environment: The impact of stakeholders' concerted action on collaborative innovation projects risk management," Technological Forecasting and Social Change, Elsevier, vol. 196(C).

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    More about this item

    Keywords

    COVID-19; Business; Service industry; Enterprise; Production and operation; Ordinal logistic regression; Interpretive structure model;
    All these keywords.

    JEL classification:

    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics
    • C53 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Forecasting and Prediction Models; Simulation Methods
    • L89 - Industrial Organization - - Industry Studies: Services - - - Other

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