1. A system dynamics approach for analyzing SMEs sustainability in Malaysia during pandemic Covid-19.
- Author
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Hawari, Nurul Nazihah, Abdullah, Dina Ilyana, and Zainuddin, Nurshahira Asyikin
- Subjects
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COVID-19 pandemic , *SMALL business , *SYSTEM dynamics , *SUSTAINABILITY , *FINANCIAL aid , *FLOW charts - Abstract
This paper illustrates the development of a system dynamics model to predict the sustainability of small medium enterprises (SMEs) before and during the COVID-19 pandemic. The pandemic did impact the country's economy, especially on SMEs on both the supply and demand perspectives. SMEs struggled to maintain their business operation during this pandemic era. To survive in the new norm, SMEs must be adaptable and innovative. Thus, this study utilizes system dynamics modelling to analyze the sustainability of SMEs' business activity in Malaysia. The causal loop diagram (CLD) is developed to represent the dynamic hypothesis of the system behavior. Next the CLD is transformed to a stock and flow diagram (SFD) with model equations to simulate the system behavior. Later, few interventions are conducted to improve the sustainability of SMEs. The research finding shows that by utilizing online business platform, and financial aid provided by the government will improve the sustainability of SMEs in Malaysia. The SD-based analysis provides unique and valuable insights on how to better identify and make strategic choices when responding to future crises. [ABSTRACT FROM AUTHOR]
- Published
- 2023
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