Determining the impact of Covid-19 on the business norms and performance of SMEs in China

Figures & data

Figure 1. Major pressure for enterprises in China (Shen et al., 2020).

Source: Authors Estimation.

Figure 2. Conceptual model of the study.

Source: Authors Estimation.

Table 1. Convergent validity and reliability of the constructs and indicators.

Latent Variables	Indicators	Factor Loadings	Cronbach's Alpha	Composite Reliability	Average Variance Extracted (AVE)
COVID-19	CV1	0.817***	0.839	0.904	0.758
	CV2	0.892***
	CV3	0.901***
Innovative Operational Procedures	IOP1	0.649***	0.787	0.867	0.690
	IOP2	0.891***
	IOP3	0.924***
Mergers and Acquisitions	MA1	0.874***	0.875	0.912	0.775
	MA2	0.835***
	MA3	0.930***
Profitability	PR1	0.855***	0.919	0.950	0.863
	PR2	0.965***
	PR3	0.963***
Remote Work	RW1	0.796***	0.692	0.828	0.619
	RW2	0.874***
	RW3	0.678***
Stakeholder Satisfaction and Safety	SSS1	0.814***	0.726	0.847	0.653
	SSS2	0.929***
	SSS3	0.657***

*** : indicating significance at 1%.

Source: Authors Estimation.

Figure 3. Measurement model of the study.

Source: Authors Estimation.

Table 2. HTMT ratio for discriminant validity.

	COVID-19	Innovative Operational Procedures	Mergers and Acquisitions	Profitability	Remote Work
Innovative Operational Procedures	0.536
Mergers and Acquisitions	0.087	0.045
Profitability	0.691	0.319	0.104
Remote Work	0.707	0.860	0.016	0.431
Stakeholder Satisfaction and Safety	0.506	0.769	0.111	0.320	0.658

Source: Authors Estimation.

Figure 4. Path model with p-values.

Source: Authors Estimation.

Table 3. Path assessment.

Path	Path Coefficient (B)	T Statistics	P Values
COVID-19 -> Innovative Operational Procedures	0.485***	12.198	0.000
COVID-19 -> Mergers and Acquisitions	0.087	1.437	0.151
COVID-19 -> Profitability	−0.605***	15.019	0.000
COVID-19 -> Remote Work	0.552***	13.548	0.000
COVID-19 -> Stakeholder Satisfaction and Safety	−0.405***	7.026	0.000

*** : indicating significance at 1%.

Source: Authors Estimation.

Figure 5. Blindfolding.

Source: Authors Estimation.

Table 4. R-squared and Q-square.

	R Square	R Square Adjusted	Q-squared
Innovative Operational Procedures	23.57%	23.33%	0.144
Mergers and Acquisitions	0.76%	0.46%	0.001
Profitability	36.64%	36.44%	0.311
Remote Work	30.43%	30.22%	0.183
Stakeholder Satisfaction and Safety	16.43%	16.17%	0.101

Source: Authors Estimation.

Table

S.No	Hypothesis	Status
1	H1: There is a significant impact of Covid-19 on innovative operational procedures	Accepted
2	H2: There is a significant impact of Covid-19 on mergers and acquisition	Rejected
3	H3: There is a significant impact of Covid-19 on profitability	Accepted
4	H4: There is a significant impact of Covid-19 on remote work	Accepted
5	H5: There is a significant impact of Covid-19 on stakeholder satisfaction and safety	Accepted

Shen, H., Fu, M., Pan, H., Yu, Z., & Chen, Y. (2020). The impact of the COVID-19 pandemic on firm performance. Emerging Markets Finance and Trade, 56(10), 2213–2230. https://doi.org/10.1080/1540496X.2020.1785863

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