Policy responses of the COVID-19 pandemic in the Philippines: Impacts on the profitability of the agri-food supply chain

The Philippines experienced many challenges brought about by the COVID-19 pandemic. In 2020, the country experienced a decline in economic growth. The agri-food sector's micro, small and medium enterprises (MSME) are amongst the country's most vulnerable. This study analyses the various policy constraints and enablers related to food manufacturing as well as the distribution in the agri-food supply chain. This study applied a mixed methods approach. Interviews with 30 agri-food enterprise owners and key officers were conducted and concept mapping was applied using Leximancer software. Key themes emerged including introduction of new products, increased online selling activity, limited supply of inputs and packaging materials, increased cost of production and delivery, and availability of government assistance. A subsequent survey (n=125) for the food manufacturers, logistics operators, traders, wholesalers, and retailers was also implemented. The effect of policy measures on enterprises' profitability was assessed using ordered probit regression. The results suggest that the likelihood of reporting profitability after the pandemic increases when the owner or key officer is male, the business is operating under a partnership, enterprises suspended their operations at some point during the pandemic, enterprises implemented health and safety protocols for their employees, there is no oversupply of employees during the lockdown period, and enterprises increased operation work hours during lockdown. The study also highlighted that manufacturing and distribution of food during the pandemic should be unhampered. However, MSMEs in the agri-food chain experienced delays and increases in prices of raw materials despite clear policy guidelines. Interregional trade was affected due to varying localised policies on health protocols and lockdowns. These policy constraints generally affected the profitability of the enterprises.

Digital Payment Adoption during the COVID-19 Pandemic in the Philippines

In the Philippines, economic recovery in the aftermath of the COVID-19 pandemic necessitates a digital shift for businesses. Through this innovation, their operations can continue under the new normal. The adoption of digital payments is one of the common business recovery options supported by the government. In this study, the factors affecting the adoption of digital payments were examined. From July 2020–January 2021, an online survey was conducted on a sample of 433 respondents with at least supervisory level positions. On average, the firms operated their enterprises for 16.22 years and employed 1.8 workers with 57% being sole proprietors, 54% micro enterprises, and 30% having information technology (IT) infrastructure. A decline in their business performance during the pandemic was observed. Two-thirds of the firms across the country employed digital payment technology, and 55% of these firms started using the technology during the pandemic period. Logit analysis was conducted to analyze the determinants of digital payment adoption. Being relatively younger, operating under a partnership business structure relative to sole proprietors, employing more human resources, having IT facilities, and experiencing business growth before the pandemic were found to be predictive of the adoption of digital payments in the business operations of these firms. While younger firms are more receptive to this new payment technology, digital capacity development programs may further revitalize businesses and industries. Such mechanisms need to be put in place targeting vulnerable enterprises: firms under sole proprietorship, without infrastructure for IT, with relatively fewer employees being relatively smaller organizations, and in decline in terms of business growth even prior to the pandemic. © 2022, Department of Science and Technology. All rights reserved.

Impact of supply chain disruptions during the COVID-19 pandemic to micro, small and medium enterprises in Davao Region, Philippines

Purpose: This paper aims to investigate the impact of supply chain disruptions on the operations and sales performance of micro, small and medium enterprises (MSMEs) and the adoption of “green” technology during the COVID-19 pandemic in Davao Region, Philippines. Design/methodology/approach: A business impact survey was conducted among 113 MSMEs in Davao Region through the Regional Inclusive Innovation Center participated by the industry, government and the academe from October–December 2020. The impact of supply chain disruptions on the status of business operations was determined using ordered logit regression, while the impact on sales performance during the lockdown and new normal periods were modeled using logit regression. The technology upgrading plans of the MSMEs, including the adoption of “green” technology, were also determined. Findings: This study found that the extent of disruption in processing the goods and services resulted in a negative impact on business operations, and the disruption of the availability of raw materials negatively affected the sales performance during the lockdown period. Moreover, around 20%–33% of MSMEs experiencing heavy supply chain disruptions had a plan to upgrade their business processes by adopting “green” technology. Research limitations/implications: MSMEs need to establish strategic collaboration among the different stakeholders through public, private, non-government institutions and academe collaboration to enhance the capabilities of MSMEs in handling supply chain disruptions and pursuing technology upgrading. Originality/value: This paper is among the early studies of the impact of COVID-19 to supply chains in the Philippines focusing on the MSMEs. © 2021, Emerald Publishing Limited.