The impact of flexibility and responsiveness on the financial performance in Malaysia’s manufacturing industry during the COVID-19 pandemic

Abstract

In order to combat the disruption caused by COVID-19, it is essential for the company's operations to implement flexibility and responsiveness in their work. In this study, the researchers will investigate the effect of these two variables on the financial performance of the company. The current study evaluates the data obtained from 215 manufacturing companies in Malaysia. The data is collected and analysed using PLS-SEM in order to provide an in-depth look at the issue. The results show that flexibility and responsiveness are positively related to a company's financial condition. The primary contribution of this study is to provide the management of company with a ground-breaking idea of dealing with a pandemic situation in the current business environment. A company's capacity to survive also depends on planning changes, particularly those that affect supply chain management and production operations. When making tough decisions, managers must be less rigid and more flexible. Demand management, inventory management, supply chain management, and operation management are some of the things that call for flexibility and responsiveness. The business will experience losses if they are unable to meet the demands of the COVID-19 era and maintain business operations. Of course, this will have an impact on the company’s financial performance.