SMEs COVID-19 supply chain resilience strategies in South Africa

Abstract

Purpose of the study: The outbreak of COVID-19 has brought disruption in the supply chain (SC) and crippled the South African economy. The economic and business disruption brought about by COVID-19 restrictions has negatively impacted all business growth and sustainability, from which small and medium sized enterprises (SMEs) are not exempted. The research focus is based on SMEs COVID-19 supply chain (SC) resilient strategies.

Design/methodology/approach: This quantitative study employed a SMART PLS 3.0 to assess the significance of the hypothesised relationships.

Findings: The findings revealed that SMEs whose main business strategy and goals are based on trust, commitment and product quality might be in a better position for success in the COVID-19 era if strategic communication systems are integrated and implemented effectively. Recommendations/value: Furthermore,based on the research findings, it is recommended that SMEs should rather focus more on improving their relationship communication strategies to enhance relationship trust and commitment to both consumers and suppliers. By so doing, product quality may gain all-around business chain appreciation. SMEs whose main business strategy and goals are based on trust, commitment, communication, and product quality might be in a better position for success in the COVID-19 era if strategic means of communication systems are integrated and implemented effectively.

Recommendations/value: To aid communication between buying and supplying organisations and customer relationships during COVID-19 lockdown restrictions, it is recommended that SMEs adopt social media usage,virtual meetings through an online communication platform as well as the connection of softphones on laptops.

Managerial implications: The facilitation of appropriate training for these SMEs is necessary for developing new business strategies to deliver enhanced product and service quality and business performance through digital technology and a higher level of commitment to product and service. Consequently, product quality may gain all-around business chain appreciation. Also, this research discovered that there are limited studies about SC resilience strategies in South African SMEs. Therefore, this study is one of the first empirical studies in SA to explore and design approaches for COVID-19 restrictions SC resilience strategies for SMEs.