2022-01-20-ADB-What_Determines_the_Adaptation_of_Enterprises_to_COVID19_in_CAREC_Member_Countries_Empirical_Evidence_from_Azerbaijan_Georgia_Kazakhstan_and_Mongolia_22页_1mb

Summary of ADBI Working Paper 1299

The study analyzes factors determining enterprises' adaptation to the COVID-19 pandemic in CAREC member countries (Azerbaijan, Georgia, Kazakhstan, Mongolia) using firm-level survey data from the World Bank Enterprise Survey and a probit model. The main findings include:

Key Determinants of Adaptation:

• Younger firms showed higher adaptability.
• Foreign-owned firms and firms with recent innovation experience adapted better.
• Female-managed firms demonstrated slightly better adaptation capabilities.
• Firms with formal strategies and defined Key Performance Indicators (KPIs) were more likely to adapt.
• Possessing a website positively influenced adaptation, reflecting digitalization.

Other Significant Factors:

• Firms located in capital cities were more adaptable (though effects vary by sample timing).
• Firms receiving government support showed increased adaptation likelihood in later survey waves (2021).
• Foreign capital ownership consistently and positively influenced adaptation likelihood across nearly all models.
• Prior innovation increased the probability of production adaptability by 7%-10%.

Study Conclusions and Implications:

• Firms adapted more effectively over the course of the pandemic, particularly in later survey years (2021).
• Innovation, formal strategy, and digitalization (having a website) are crucial factors.
• Government support is important, but its positive effects become more apparent later in the pandemic.
• The findings highlight the importance of specific firm characteristics and strategic planning for resilience against economic shocks like the COVID-19 crisis.