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Inventory Management Practices among Small and Micro Businesses during COVID-19 Pandemic

Author

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  • Tuan Zainun Tuan Mat
  • Marshita Hashim
  • Shukriah Saad
  • Mohd Badrulhisham Ismail

Abstract

Developing micro, small, and medium businesses (SMEs) encourages Malaysia's economic growth. The Covid-19 pandemic has greatly affected SMEs. During the Covid-19 pandemic, with material shortages and shipping delays, the ability to track the inventory is critical. Adopting digital technology in the inventory tracking process will assist the company in managing its inventory effectively. SMEs need to have relevant knowledge and technical skills to adopt digital technology. Specifically, this study explores SMEs' current inventory management practices to gauge their knowledge of inventory management. Data was collected using semi-structured interviews using a questionnaire with ten SMEs in Selangor. This study documents that SME organisation value is positively associated with best inventory management practices. In addition, results show that divergence can intensify the negative relationship between low inventory management practices and SMEs' value. Findings support the need for more scrutiny by SME owners, regulators, policymakers, and standard setters to monitor the conflict, which is crucial for SMEs to overcome the issues and challenges they face. This study will contribute to the sustainability of SMEs, consistent with the national agenda to strengthen the SMEs as highlighted in the government’s new Economic Transformation Program (ETP) through Bumiputera’s Economic Transformation Agenda.

Suggested Citation

  • Tuan Zainun Tuan Mat & Marshita Hashim & Shukriah Saad & Mohd Badrulhisham Ismail, 2023. "Inventory Management Practices among Small and Micro Businesses during COVID-19 Pandemic," Accounting and Finance Research, Sciedu Press, vol. 12(4), pages 1-86, November.
    • Handle: RePEc:jfr:afr111:v:12:y:2023:i:4:p:86
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    References listed on IDEAS

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    1. Huayu Shen & Mengyao Fu & Hongyu Pan & Zhongfu Yu & Yongquan Chen, 2020. "The Impact of the COVID-19 Pandemic on Firm Performance," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 56(10), pages 2213-2230, August.
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    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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