Abstract:
This study aimed at finding the relationship among lockdown & movement restrictions,
digital capabilities, financial performance, employee productivity, and government
support during COVID-19 pandemic on SMEs performance in Province Punjab,
Pakistan. In this cross-sectional study, data was collected from different SMEs through
convenience sampling. Information was collected using a close-ended questionnaire.
Out Of 385 questionnaires, 343 were valid responses, giving a response rate of 89.01%.
The results showed that lockdown & movement restriction capabilities (β = -0.204, t =
5.560) and digital capabilities (β = -0.308, t = 7.027) have negative and significant
impact on the performance of Pakistani SMEs whereas employee productivity (β
=0.108, t=3.509), government support (β=0.443, t=16.6145) and financial performance
(β = 0.252, t = 6.574) have significant positive relationship with SMEs performance.
The study also confirmed the predictive relevance of the path model and indicated that
the model possesses the significant predictive relevance. The results suggest that SMEs
should constantly modernize or update their strategies and plans to obtain the flexibility
needed to counter the complications due to unforeseen crisis. The government of
Pakistan should encourage and facilitate SMEs to endorse digital technologies
extensively in their operations, thus not only increasing productivity and reducing cost,
but also adding extra value to their products.
