IDEAS home Printed from https://ideas.repec.org/a/plo/pone00/0286717.html
   My bibliography  Save this article

Aggressive strategies of the COVID-19 pandemic on the apparel industry of Sri Lanka using structural equation modeling

Author

Listed:
  • Wasantha Rajapakshe
  • D S M Karunaratna
  • W H G Ariyaratne
  • H A Lakshani Madushika
  • G S K Perera
  • P Shamila

Abstract

During the COVID-19 crisis, the apparel industry faced many challenges. Aggressive cost-cutting strategies became a top priority, and in turn, these influenced stressors and adversely affected business sustainability. This study examines the impact of aggressive strategies during the COVID-19 pandemic on business sustainability in the apparel industry of Sri Lanka. Further, it investigates whether the relationship between aggressive cost-cutting strategies and business sustainability was mediated by employee stress, considering aggressive cost reduction strategies and workplace environmental changes. This was a cross-sectional study with data collected from 384 employees in the apparel industry in Sri Lanka. Structural Equation Modelling (SEM) was applied to analyze the direct and indirect effects of aggressive cost reduction strategies and workplace environmental changes on sustainability with mediating effects of stress. Aggressive cost reduction strategies (Beta = 1.317, p = 0.000) and environmental changes (Beta = 0.251, p = 0.000) led to an increase in employee stress but did not affect business sustainability. Thus, employee stress (Beta = -0.028, p = 0.594) was not a mediator in the relationship between aggressive cost-cutting strategies and business sustainability; business sustainability was not a dependent variable. The findings proved that managing workplace stress, particularly improving stressful working environments and aggressive cost reduction strategies, can enhance employee satisfaction. Thus, managing employee stress could be beneficial for policymakers to focus on the area(s) required to retain competent employees. Moreover, aggressive strategies are unsuitable to apply during crisis to enhance business sustainability. The findings provide additional knowledge to the existing literature, enabling employees and employers to predict causes of stress and serve as a significant knowledge base for further studies.

Suggested Citation

  • Wasantha Rajapakshe & D S M Karunaratna & W H G Ariyaratne & H A Lakshani Madushika & G S K Perera & P Shamila, 2023. "Aggressive strategies of the COVID-19 pandemic on the apparel industry of Sri Lanka using structural equation modeling," PLOS ONE, Public Library of Science, vol. 18(6), pages 1-19, June.
    • Handle: RePEc:plo:pone00:0286717
    DOI: 10.1371/journal.pone.0286717
    as

    Download full text from publisher

    File URL: https://journals.plos.org/plosone/article?id=10.1371/journal.pone.0286717
    Download Restriction: no
    File URL: https://journals.plos.org/plosone/article/file?id=10.1371/journal.pone.0286717&type=printable
    Download Restriction: no
    File URL: https://libkey.io/10.1371/journal.pone.0286717?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Bin Shen & Chen Zhu & Qingying Li & Xiaofeng Wang, 2021. "Green technology adoption in textiles and apparel supply chains with environmental taxes," International Journal of Production Research, Taylor & Francis Journals, vol. 59(14), pages 4157-4174, July.
    2. Mohammad Mahdi Rounaghi & Hajer Jarrar & Leo-Paul Dana, 2021. "Implementation of strategic cost management in manufacturing companies: overcoming costs stickiness and increasing corporate sustainability," Future Business Journal, Springer, vol. 7(1), pages 1-8, December.
    3. Madsen, Signe Mørk & Petermans, Ann, 2020. "Exploring the system of digitised retail design—flattening the ontology," Journal of Retailing and Consumer Services, Elsevier, vol. 54(C).
    4. Lee D. Parker, 2020. "The COVID-19 office in transition: cost, efficiency and the social responsibility business case," Accounting, Auditing & Accountability Journal, Emerald Group Publishing Limited, vol. 33(8), pages 1943-1967, July.
    5. Mark ANNER, 2022. "Power relations in global supply chains and the unequal distribution of costs during crises: Abandoning garment suppliers and workers during the COVID‐19 pandemic," International Labour Review, International Labour Organization, vol. 161(1), pages 59-82, March.
    6. Adriana AnaMaria Davidescu & Simona-Andreea Apostu & Andreea Paul & Ionut Casuneanu, 2020. "Work Flexibility, Job Satisfaction, and Job Performance among Romanian Employees—Implications for Sustainable Human Resource Management," Sustainability, MDPI, vol. 12(15), pages 1-53, July.
    7. Eleftherios Giovanis, 2019. "Do the flexible employment arrangements increase job satisfaction and employee loyalty? Evidence from Bayesian networks and instrumental variables," International Journal of Computational Economics and Econometrics, Inderscience Enterprises Ltd, vol. 9(1/2), pages 84-115.
    8. repec:eme:aaaj00:aaaj-06-2020-4609 is not listed on IDEAS
    9. Alexandre Dolgui & Dmitry Ivanov & Maxim Rozhkov, 2020. "Does the ripple effect influence the bullwhip effect? An integrated analysis of structural and operational dynamics in the supply chain," International Journal of Production Research, Taylor & Francis Journals, vol. 58(5), pages 1285-1301, March.
    10. Abdalwali Lutfi & Akif Lutfi Al-Khasawneh & Mohammed Amin Almaiah & Adi Alsyouf & Mahmaod Alrawad, 2022. "Business Sustainability of Small and Medium Enterprises during the COVID-19 Pandemic: The Role of AIS Implementation," Sustainability, MDPI, vol. 14(9), pages 1-20, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Andreja Mihailović & Julija Cerović Smolović & Ivan Radević & Neli Rašović & Nikola Martinović, 2021. "COVID-19 and Beyond: Employee Perceptions of the Efficiency of Teleworking and Its Cybersecurity Implications," Sustainability, MDPI, vol. 13(12), pages 1-26, June.
    2. Lin Sun & Qixiang Yuan, 2024. "Only the Friendly Face? The Consequences of Consumer Education for Green Consumerism in Remanufacturing," Sustainability, MDPI, vol. 16(17), pages 1-16, August.
    3. Kwame Owusu Boakye & Isaac Nyarko Adu & Michael Kyei-Frimpong & Evelyn Twumasi, 2024. "Gaining competitive advantage through integrated talent development and engagement practices in the telecommunication sector; the mediating role of corporate image," Future Business Journal, Springer, vol. 10(1), pages 1-15, December.
    4. Giulio Marcucci & Filippo Emanuele Ciarapica & Giovanni Mazzuto & Maurizio Bevilacqua, 2024. "Analysis of ripple effect and its impact on supply chain resilience: a general framework and a case study on agri-food supply chain during the COVID-19 pandemic," Operations Management Research, Springer, vol. 17(1), pages 175-200, March.
    5. Lutfi, Abdalwali & Alrawad, Mahmaod & Alsyouf, Adi & Almaiah, Mohammed Amin & Al-Khasawneh, Ahmad & Al-Khasawneh, Akif Lutfi & Alshira'h, Ahmad Farhan & Alshirah, Malek Hamed & Saad, Mohamed & Ibrahim, 2023. "Drivers and impact of big data analytic adoption in the retail industry: A quantitative investigation applying structural equation modeling," Journal of Retailing and Consumer Services, Elsevier, vol. 70(C).
    6. Dmitry Ivanov, 2022. "Viable supply chain model: integrating agility, resilience and sustainability perspectives—lessons from and thinking beyond the COVID-19 pandemic," Annals of Operations Research, Springer, vol. 319(1), pages 1411-1431, December.
    7. Lucía Muñoz-Pascual & Carla Curado & Jesús Galende, 2021. "Fuzzy Set Qualitative Comparative Analysis on the Adoption of Environmental Practices: Exploring Technological- and Human-Resource-Based Contributions," Mathematics, MDPI, vol. 9(13), pages 1-21, July.
    8. Walker, Thomas & Fernandes, Alisha & Karami, Moein, 2024. "Corporate resilience during crises and the role of ESG factors: Evidence from the COVID-19 pandemic," Finance Research Letters, Elsevier, vol. 69(PB).
    9. Rozhkov, Maxim & Ivanov, Dmitry & Blackhurst, Jennifer & Nair, Anand, 2022. "Adapting supply chain operations in anticipation of and during the COVID-19 pandemic," Omega, Elsevier, vol. 110(C).
    10. Ruixin Su & Bojan Obrenovic & Jianguo Du & Danijela Godinic & Akmal Khudaykulov, 2022. "COVID-19 Pandemic Implications for Corporate Sustainability and Society: A Literature Review," IJERPH, MDPI, vol. 19(3), pages 1-23, January.
    11. Anna Lewandowska & Zia Ullah & Fatima Saleh AlDhaen & Esra AlDhaen & Alina Yakymchuk, 2023. "Enhancing Organizational Social Sustainability: Exploring the Effect of Sustainable Leadership and the Moderating Role of Micro-Level CSR," Sustainability, MDPI, vol. 15(15), pages 1-16, August.
    12. Marcel Rolf Pfeifer, 2021. "Human Resources during COVID-19: A Monthly Survey on Mental Health and Working Attitudes of Czech Employees and Managers during the Year 2020," Sustainability, MDPI, vol. 13(18), pages 1-20, September.
    13. Alrawad, Mahmaod & Lutfi, Abdalwali & Alyatama, Sundus & Al Khattab, Adel & Alsoboa, Sliman S. & Almaiah, Mohammed Amin & Ramadan, Mujtaba Hashim & Arafa, Hussin Mostafa & Ahmed, Nazar Ali & Alsyouf, , 2023. "Assessing customers perception of online shopping risks: A structural equation modeling–based multigroup analysis," Journal of Retailing and Consumer Services, Elsevier, vol. 71(C).
    14. Jacob Mofokeng & Mmabatho Aphane, 2022. "Exploring influence between employee motivation and service quality in the South African Police Service," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 11(2), pages 487-497, March.
    15. Fatih YEGUL & Atif ACIKGOZ & Zaur KAZIMOV, 2022. "Impact Of Working From Home On Productivity & Performance, Evidence From North American Logistics Industry During Covid-19 Pandemic," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 2(2), pages 289-303, December.
    16. Scarpin, Marcia Regina Santiago & Scarpin, Jorge Eduardo & Krespi Musial, Nayane Thais & Nakamura, Wilson Toshiro, 2022. "The implications of COVID-19: Bullwhip and ripple effects in global supply chains," International Journal of Production Economics, Elsevier, vol. 251(C).
    17. Yoko E. Fukumura & Julie McLaughlin Gray & Gale M. Lucas & Burcin Becerik-Gerber & Shawn C. Roll, 2021. "Worker Perspectives on Incorporating Artificial Intelligence into Office Workspaces: Implications for the Future of Office Work," IJERPH, MDPI, vol. 18(4), pages 1-15, February.
    18. Ashraf, Muhammad Saleem & Sulehri, Fiaz Ahmad & Audi, Marc & Bukhari, Syeda Ambreen Fatima & Azam, Habiba & Ali, Amjad, 2024. "Impact of Work Motivation on Job Satisfaction: The Role of Employee Reward, Training and Islamic Work Accommodation," MPRA Paper 121557, University Library of Munich, Germany.
    19. Paul, Sanjoy Kumar & Chowdhury, Priyabrata & Moktadir, Md. Abdul & Lau, Kwok Hung, 2021. "Supply chain recovery challenges in the wake of COVID-19 pandemic," Journal of Business Research, Elsevier, vol. 136(C), pages 316-329.
    20. El Baz, Jamal & Ruel, Salomée, 2021. "Can supply chain risk management practices mitigate the disruption impacts on supply chains’ resilience and robustness? Evidence from an empirical survey in a COVID-19 outbreak era," International Journal of Production Economics, Elsevier, vol. 233(C).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:plo:pone00:0286717. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: plosone (email available below). General contact details of provider: https://journals.plos.org/plosone/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.