Degree of Technology, Adequacy of Infrastructure, and Stimulus Rainy-Day-Fund as Determinants of a Firm’s Performance during a Pandemic

Abstract

This research aims to use a quantitative research method to measure the degree of technology, adequacy of infrastructure, and stimulus/rainy day fund as determinants of a firm’s performance during a pandemic. The paper draws from the contingency theory, which focuses on situational variables and leadership styles for effective leadership in managing events. The theory describes that “there is no single right method of doing things and it’s the context which decides the best approach” (Kureshi, 2013). Leaders guide every innovation and change in an organization for the purpose of self-enhancement (Özkan, et al., 2017). Although abundant research exists on managing internal organization crises, disasters, and unexpected events, existing research on managing pandemic crises is relatively little. This paper uses COVID-19 as a base for testing a firm’s performance during a pandemic, which, the paper argues, cannot be managed through standard crisis management. COVID-19 impacted the world and employees’ health. Various methods have been applied to protect employees from being sick, including remote work and social distancing. In this paper, technology such as automation and digitalization, adequacy of infrastructure for social distancing, and stimulus/rainy-day-fund are proposed as alternatives to manage pandemic crises. A survey was designed and sent to the leaders of United States’ corporations through Qualtrics, a web-based survey software. The data collected was analyzed using SmartPLS 3 to test the hypothesized relationships. Overall, the results supported the hypothesized relationships, including (1) direct relationship between the adequacy of infrastructure and a firm’s performance and (2) indirect relationships between the degree of technology and stimulus/rainy day fund determinants and a firm’s performance during a pandemic. Although predicted, the results did not support the hypothesized direct relationships between the degree of technology and stimulus/rainy-day-fund determinants and a firm’s performance during a pandemic

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