How Can Digitalization Mitigate Pandemic-Induced Demand Shocks? A Case Study from the Apparel Industry
This paper aims to explore how digitalization can be used as a risk mitigation tool against pandemic-induced demand shocks, when customer movements and activities are constrained by government regulations. Due to the disrupting events of the COVID-19 pandemic, we opted for an exploratory study to un...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
MDPI AG
2023-12-01
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| Series: | Administrative Sciences |
| Subjects: | |
| Online Access: | https://www.mdpi.com/2076-3387/13/12/257 |
| _version_ | 1797382466358476800 |
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| author | Zsolt Matyusz Bence Pistrui |
| author_facet | Zsolt Matyusz Bence Pistrui |
| author_sort | Zsolt Matyusz |
| collection | DOAJ |
| description | This paper aims to explore how digitalization can be used as a risk mitigation tool against pandemic-induced demand shocks, when customer movements and activities are constrained by government regulations. Due to the disrupting events of the COVID-19 pandemic, we opted for an exploratory study to uncover the risk mitigation capabilities of digitalization under these circumstances, using a fast fashion case company as an empirical example. Several interviews were conducted with middle and top managers at the company. Our empirical insights about the risk mitigation capabilities of digitalization suggest that, as COVID-19-like events may become more frequent in the future, digital tools offering certain mitigations against physical constraints should be valued more highly than they have been previously. We encourage decision makers to look at the risk mitigation capabilities of digital solutions and include those into the cost–benefit discussion when thinking about new investments. In this way, our paper fills a pragmatic gap in this field, and is expected to help companies to identify the key success factors for the successful implementation of a digital transformation. Because of our chosen research approach, the research results may lack generalizability. Further company-wide, industry-wide, and country-wide extension of this research is possible. |
| first_indexed | 2024-03-08T21:05:47Z |
| format | Article |
| id | doaj.art-b429c49275b24a659cd4e5df3ea2699c |
| institution | Directory Open Access Journal |
| issn | 2076-3387 |
| language | English |
| last_indexed | 2024-03-08T21:05:47Z |
| publishDate | 2023-12-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Administrative Sciences |
| spelling | doaj.art-b429c49275b24a659cd4e5df3ea2699c2023-12-22T13:45:02ZengMDPI AGAdministrative Sciences2076-33872023-12-01131225710.3390/admsci13120257How Can Digitalization Mitigate Pandemic-Induced Demand Shocks? A Case Study from the Apparel IndustryZsolt Matyusz0Bence Pistrui1Corvinus University of Budapest, 1093 Budapest, HungaryCorvinus University of Budapest, 1093 Budapest, HungaryThis paper aims to explore how digitalization can be used as a risk mitigation tool against pandemic-induced demand shocks, when customer movements and activities are constrained by government regulations. Due to the disrupting events of the COVID-19 pandemic, we opted for an exploratory study to uncover the risk mitigation capabilities of digitalization under these circumstances, using a fast fashion case company as an empirical example. Several interviews were conducted with middle and top managers at the company. Our empirical insights about the risk mitigation capabilities of digitalization suggest that, as COVID-19-like events may become more frequent in the future, digital tools offering certain mitigations against physical constraints should be valued more highly than they have been previously. We encourage decision makers to look at the risk mitigation capabilities of digital solutions and include those into the cost–benefit discussion when thinking about new investments. In this way, our paper fills a pragmatic gap in this field, and is expected to help companies to identify the key success factors for the successful implementation of a digital transformation. Because of our chosen research approach, the research results may lack generalizability. Further company-wide, industry-wide, and country-wide extension of this research is possible.https://www.mdpi.com/2076-3387/13/12/257risk managementretaildigitalizationCOVID-19 |
| spellingShingle | Zsolt Matyusz Bence Pistrui How Can Digitalization Mitigate Pandemic-Induced Demand Shocks? A Case Study from the Apparel Industry Administrative Sciences risk management retail digitalization COVID-19 |
| title | How Can Digitalization Mitigate Pandemic-Induced Demand Shocks? A Case Study from the Apparel Industry |
| title_full | How Can Digitalization Mitigate Pandemic-Induced Demand Shocks? A Case Study from the Apparel Industry |
| title_fullStr | How Can Digitalization Mitigate Pandemic-Induced Demand Shocks? A Case Study from the Apparel Industry |
| title_full_unstemmed | How Can Digitalization Mitigate Pandemic-Induced Demand Shocks? A Case Study from the Apparel Industry |
| title_short | How Can Digitalization Mitigate Pandemic-Induced Demand Shocks? A Case Study from the Apparel Industry |
| title_sort | how can digitalization mitigate pandemic induced demand shocks a case study from the apparel industry |
| topic | risk management retail digitalization COVID-19 |
| url | https://www.mdpi.com/2076-3387/13/12/257 |
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