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Channel Structure Innovation as a Response to the COVID-19 Pandemic: Cases From Mexico
Author(s): Manuela Gutiérrez-Leefmans (Universidad de las Américas Puebla, Mexico)
Copyright: 2022
Pages: 20
EISBN13: 9781668470664
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Abstract
Although there are studies on COVID-19's impact on supply chains for essential goods, the authors agree that SMEs have been largely ignored in this context. National statistics indicate that micro, small, and medium enterprises represent 99.8% of total business units in Mexico and are therefore a relevant unit of analysis. Such companies had to deal with lack of materials and delayed delivery times combined with a slowed-down demand of products. The adoption of e-commerce as an alternative channel was finally embraced by small enterprises in the country in order to survive. Original research with data from interviews to five micro and small enterprises managers is used to write mini-case studies, showing that both omni-channel and vertical integration were the most commonly used strategies. Results indicate that both flexibility and control are at the center of the decision to vertically integrate and therefore disintermediate (reducing the level number of the channel structure). A model of distribution channel innovation is proposed together with theoretical and practical implications.
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