Industrial buying during the coronavirus pandemic: A cross-cultural study

International Corporate Cash Holdings and Firm-Level Exposure to COVID-19: Do Cultural Dimensions Matter?

This study investigates the impact of COVID-19 exposure on corporate cash holdings using firm data across sixteen developing and developed economies. The results show that firms reserve more cash when their exposure to COVID-19 increases. We also find a cash burn effect during the COVID-19 pandemic, meaning that the cash holdings are drained when firm exposure to the pandemic exceeds a tipping point. The effect is more pronounced in larger firms and firms with less cash reserve. Further analyses reveal that the cash burn effect tends to be stronger in countries with a high level of individualism and weaker in countries with high levels of risk aversion, masculinity, and long-term orientation. The findings provide fresh insights into the connections among corporate cash holdings, national cultures, and firm-level exposure to COVID-19.

Consumer Stockpiling Across Cultures During the COVID-19 Pandemic

On March 11, 2020, the World Health Organization declared the COVID-19 (coronavirus) outbreak a pandemic. In the following days, media reports showed that consumers increasingly stockpiled groceries and household supplies. Interestingly, behavioral data show that this stockpiling exhibited considerable heterogeneity across countries. Building on cultural dimension theory, the authors theorize that this heterogeneity can be explained by countries’ cultural values: consumer stockpiling after the World Health Organization's announcement was more pronounced in countries whose residents show high uncertainty avoidance, low long-term orientation, low indulgence, and high individualism. The authors confirm these propositions using global mobility data from Google matched with country-level data on cultural values, pandemic reaction policies, and other key variables. This research note thereby integrates the previously disconnected literature on cultural dimension theory and consumer stockpiling in general, as well as provides new and significant knowledge about cross-cultural consumer behavior in crises. Furthermore, the authors provide actionable insights for international policy makers and business managers who aim to predict or control consumer stockpiling in future global crises to enhance consumer well-being.

A TISM and MICMAC Analysis of Factors During the COVID-19 Pandemic in the Indian Apparel Supply Chain

The objective of this study is to explore the challenges faced by the Indian apparel supply chain in the wake of COVID-19 to identify the factors that are being affected and build a multilevel hierarchy model to prioritize the factors and understand their inter-relationships. An intensive literature review was conducted and many experts from apparel supply chain were consulted. The study was conducted by the help of a survey sent to these experts from different echelons in the apparel industry. The data was then analysed using Total Interpretive Structural Modelling (TISM). The “Difficulty in export order fulfilment” factor is found to be the most sensitive factor which means that it is present in the TISM model hierarchy in a place that it is affected by most of the factors and in-turn impacts factors like operational cost, change in marketing strategy, change in consumer buying pattern, which impact Profitability and Cut-off in employment. “Cut-off in employment” is found to be most impacted by all other factors in TISM model.

Identifying consumer segments based on COVID-19 pandemic perceptions and responses

Consumer responses to the COVID-19 pandemic have varied widely. Thus, marketers need to understand consumer segments based on pandemic-related responses and behaviors. Through two studies conducted 9 months apart, we find that consumers shift from three segments in Study 1-the Apprehensive, the Prepared, and the Dismissive, to two segments in Study 2-the Dedicated and the Dismissive. The Apprehensive feel particularly threatened of the virus. The Prepared and the Dedicated perceive a lower susceptibility but still take the health threat seriously. The Dismissive downplay the threat and exhibit more negative reactions to mitigation measures. We also demonstrate between-segment downstream response differences. While the Apprehensive and the Prepared/Dedicated exhibit positive attitude toward companies enforcing guidelines, the Apprehensive engage in the most panic buying, hoarding, and stockpiling. The Dedicated also express greater stress and less life satisfaction than the Dismissive. The findings offer theoretical and practical implications for pandemic-related consumer responses.

Managing the great bullwhip effects caused by COVID-19

Purpose

This study aims to answer the question of how firms can deal with the great bullwhip effects caused by COVID-19?

Design/methodology/approach

An exploratory research method has been adopted and evidence was collected based on 41 online interviews.

Findings

The study finds that the bullwhip effect is caused by the sudden changes in customers purchasing behaviour during the pandemic and the businesses’ inaccurate anticipation of the situation. Managing the bullwhip effects caused by COVID-19 requires situation awareness, localisation and an intelligent supply chain. Situation awareness is a vital concept in emergency response, knowing what is going to figure out what should be done. Furthermore, reducing the geographical distances between the firm and other parties in the supply chain, which equates to supply chain localisation, enforces just-in-time inventory. Finally, supply chain digitalisation is no longer an option; implementing such a solution enables end-to-end visibility, collaboration, flexibility and optimisation of orchestration of the supply chain.

Research limitations/implications

This study presents indicators explaining how organisations can deal with the great bullwhip effects caused by COVID-19.

Originality/value

The ongoing outbreak of the COVID-19 pandemic has brought about significant challenges for supply chain management, and this study contributes to the body of knowledge and proposes a model of reducing the bullwhip effects.

Risk perceptions of COVID-19 and its impact on precautionary behavior: A qualitative study

OBJECTIVE

The controlling of the COVID-19 pandemic is influenced by the precautionary behavior of the community, and such behavior is frequently related to individuals' risk perception. The current study aimed to explore risk perceptions and precautionary behavior in response to COVID-19.

METHOD

Qualitative in-depth interviews by telephone were undertaken with 26 participants from three affected cities in an initial stage of the disease outbreak, from May 3 to June 5, 2020. The method of analyzing data was inductive. The results were analyzed using interpretation, categorizing, and thematic analysis.

RESULTS

The perception of risk is influenced by numerous individual, community, and cultural factors; these perceptions act as triggers for precautionary behavior, with a tendency to deny risks or react with exaggeration in terms of the precautionary reactions related to COVID-19. The thematic analysis produced two major categories: 1) risk perception and 2) precautionary behavior. The analysis provides essential insight into risk perception and precautionary behavior.

CONCLUSION

The risk perceptions and patterns of precautionary behavior could be unreliable, unhealthy, and culturally affected, which would influence the effectiveness of pandemic control measures. Further investigations with more data and including risk perception and precautionary behavior in the national response plan for emergency and crisis are highly recommended.

PRACTICE IMPLICATIONS

A greater understanding and ongoing assessment of COVID-19 risk perception could inform policymakers and health professionals who seek to promote precautionary behavior. This could also facilitate early interventions during pandemics.

Purchase behavior in COVID-19: A cross study in Mexico, Colombia, and Ecuador

This article explores the critical factors of consumption in Mexico, Ecuador, and Colombia, due to confinement and social distancing. Besides, which are the factors that influence the purchase decision. In the proposed model, we tested from quantitative research with a sample of 2,065 online consumers. We analyzed the following statistics: CFA, structural equations, invariance of measurement instruments, and multi-group analysis with the Smart Pls 3 and EQS 6.3 software. The study reveals that time, space, and place in the consumption process is more visible in the purchasing behavior with social distancing, healthy distance, and the commercial restriction caused by the health contingency. In addition to being a health and humanitarian crisis, the pandemic has severe economic consequences worldwide as 1) the increase in unemployment rates, 2) collapsed health systems, 3) education models overwhelmed by technology, 4) supply chains interrupted by the closure of borders, 5) international and domestic tourism suspended due to a lack of sanitary protocols,6) social coexistence curtailed by significantly increased infections and 7) a decreasing demand by consumers for the closure of companies. Despite being Latin American countries, cultural differences were not the priority of consumption in the crisis period due to Covid-19. They significantly change purchasing behaviors, and all have adapted to online and home delivery purchases by the social factor, local consumption, and consumers' attitude. The article presents several considerations on the main factors of consumption in Covid-19 in collectivist countries (North American and South America) such as Mexico, Colombia, and Ecuador and finds no substantial differences with consumers. There are practical implications for companies to adopt online channels and to create sales strategies in the face of the endemic pandemic.

Media portrayal of panic buying: A content analysis of online news portals

Objectives

Media reporting has an influential role in panic buying (PB). We aimed to evaluate the media portrayal of PB during this COVID-19 pandemic.

Methods

We searched, collected, and analysed the news reports from the English media discussing the PB events. The search was done between 23 and 30 May 2020.

Results

A total of 525 news reports were analysed. Approximately half (49.3%) discussed the government action to handle the situation, 36.4% discussed the expert opinion regarding PB, 20.6% discussed the psychology of PB, 21.5% discussed the rumours, and 18.5% suggested remedial measures. Concerning the negative aspects, 96.6% of the titles mentioned panic buying, 75.4% mentioned the cause, and 62.3% mentioned the photos of empty shelves. The media in low–middle-income countries are 1.5 times more likely to include expert opinion (p = 0.03), 2.1 times more likely to discuss rumours regarding PB (p = 0.001), almost thrice more likely to report the cause of PB (p = 0.001), and thrice more likely to mention its impact (p = 0.001).

Conclusion

Media has been portraying more negative aspects of PB. Further, there are variations in reporting patterns between high-income and low–middle-income countries.