Management of the Firm’s Economic crisis
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Date
2022
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Abstract
The better-prepared firms usually survive economic shocks higher than the rest. The goal of the research is to analyze the effect of the economic crisis on companies’ performance in Kazakhstan. The goal of this research is to find ways for small and medium-sized enterprises to survive in the face of the Covid-19 coronavirus pandemic. My research is focused on third largest industry by employment share in Kazakhstan, which is the distribution sector (Bijnens & Konings, 2018). I investigate the probability of surviving of more than 19,000 grocery stores from 2017 to 2021 and investigate the factors of stores' that influence their survival rate during economic crisis caused by the COVID-19. By implementing the Cox proportional hazards model and OLS, I explore the effects of different variables like location, region, sales size, and type of store, which are regarded as key determinants of a store's survival rate. Results of analysis showed that due to the COVID-19 crisis, 1.8 times more retail outlets closed in 2020 compared to previous years and that rural outlets with high sales values had higher survival rates after the COVID-19 crisis than urban outlets. In addition, I found out that traditional grocery outlets have higher survival rates than wholesale stores. This statement is backed up by non-parametric and as well as parametric tests that were performed during the research. These results of study could be useful in reducing the harmful consequences of crisis during recessions from a normative standpoint. Additionally, this research can act as a guide for grocery stores' crisis management. There is very little research in this field in Kazakhstan, and the proposed thesis can help companies choose their strategic directions in crisis management in Kazakhstan.
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Keywords
effect of economic crises, cox proportional hazards model, Kazakhstan, masters dissertation
Citation
Zhekenbay D./Management of the Firm’s Economic crisis/Economics, Kaskelen-2022