Technological Innovation and Circular Economy Practices: Business Strategies to Mitigate the Effects of COVID-19

Abstract

The Corona Virus Disease 2019 (COVID-19) has been a tough test on companies in the global food sector supply chain, exacerbating the realities and deficiencies it presents in developing economies. This situation has been reflected in the firm’s performance (F.P.) due to the lack of business conditions to respond to the current pandemic. However, in some companies, the adverse effects of COVID-19 have been counteracted due to endowment and technological capabilities. Thus, this study examined the role of technological innovation (T.I.) and business data analytics (B.D.A.) in the F.P. of foods in Ecuador during COVID-19. A questionnaire collected the information from the food firms. Then, Covariance-Based Structural Equation Modeling processed the collected information. We found that (B.D.A.) mechanisms and different levels of T.I. within the developing market significantly shape the F.P. The results showed that the B.D.A. enables circular economy (C.E.) practices and the improvement of product delivery services, which constitutes an improvement of the F.P. The COVID-19 outbreak did not significantly affect T.I., unlike what happened with B.D.A. This study concluded that firms with the most extraordinary technological production processes have been the least affected during COVID-19. This study suggested that policy measures should boost food firms’ technological endowment to improve their resilience in uncertainty and risk scenarios.