Diagnostic Assessment of Post-COVID-19 Operations for Business Model Reconfiguration Decision

Abstract

The current study develops a diagnostics assessment model of post-COVID-19 operations for business model reconfiguration decision referred to as the Pakade model. For this purpose, it identified seven diagnostic factors namely business operations disruptions, loss of human resources, changing cost structure due to safety requirements, work structure and culture change, disruption of supply chain and logistics, changing customer requirement and behaviour, and consequences of interventions on sustainability. The assessment was conducted using a 29-item scale scored on a 7-point scale representing the level of impact on the respective firm’s business model. The proposed model assesses the composite score and relative importance index for each business factor, highlights the approach for investigating the validity and reliability of this multidimensional model, and makes short- and long-term impact evaluation with multiple linear regression and difference-in-difference (DiD) method, respectively. Diagnostics assessment determines the form and extent of business model reconfiguration. It can either be an adjustment driven by the introduction or enhancement of world class work practices, a business re-engineering, or a complete change of the business model. This model can be applied to both the primary and secondary economic sectors to determine the changes required in the business model of a firm.