Demand and supply disruptions during the Covid-19 crisis on firm productivity

Abstract

This paper explores the impact of supply chain (SC) disruptions on the performance outcomes of a semiconductor company during the Covid-19 pandemic and propose appropriate risk mitigation strategies to overcome this crisis. This research uses a single case study methodology and 24 SC employees in Belgium and Germany took part in a survey. To measure the effect of SC disruptions on the firm’s financial performance, quarterly financial statement data was collected from the years 2018 to 2021. The results of the regression analysis show that there is no significant impact of SC disruptions on the firm’s productivity and non-financial performance. The paired samples t-test suggests that there is no significant change in the firm’s financial performance before and during Covid-19. This may be due to the political and economic stability of Belgium and Germany or the fact that the semiconductor company has developed effective SC risk management strategies to deal with Covid-19.