Influence of COVID-19 on Taiwan’s manufacturing, procurement, and sales relationship

Abstract

Against the backdrop of the COVID-19 pandemic, Taiwan’s economic sectors have experienced a decline in activity. Addressing this situation effectively necessitates Taiwan to strategically align its transnational supply ecosystem with global consumption patterns, positioning itself as a crucial industrial collaborator for co-creation and shared prosperity. This study utilizes a comprehensive framework that encompasses manufacturing, procurement, and sales. Data related to Taiwan’s industries are collected through a questionnaire, and the Structural Equation Modeling (SEM) multivariate statistical method is utilized for factor and path analyses to evaluate the impact of COVID-19 on these industries. Based on the responses from the questionnaire, the dominant sectors in Taiwan’s industries are electronics/electrical machinery, accounting for around 40.84% of the industry, followed by metals/machinery at approximately 20.90%. Notably, specific aspects concerning manufacturing manpower, procurement and delivery processes, sales revenue, and product costs were reported as “somewhat serious” on average during the COVID-19 period. The results of this research indicate that manufacturing does not significantly influence sales. Additionally, there is a significant positive correlation between manufacturing and procurement. Given the unpredictable changes that companies and entire industries are currently facing, it is crucial to implement strategic measures. Because of COVID-19 influence, organizations, companies, and sectors have undergone significant transformation, necessitating the implementation of the necessary protections. In this situation, the concept of organizational resilience becomes crucial.