The Impact of COVID-19 in Delivering Customer Social Value through Supply Chain

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Chapter And Authors Information

Dewi Tamara

Binus Business School Master Program, Bina Nusantara University, Indonesia

Anita Maharani

Binus Business School Master Program, Bina Nusantara University, Indonesia
The Impact of COVID-19 in Delivering Customer Social Value through Supply Chain
From the Edited Volume
Edited By:
Professor Richard Wilding
Content

Abstract

An agile supply chain is important in a struggling post-COVID-19 economy to manage costs and to respond to customer demand. And, the ability to react rapidly is the key to satisfying customer demand. Supply chains, their re-organisation as platform-mediated ecosystems, are now primed for their biggest change yet. The Platform refers to a technology that allows open interaction between market players, such as producers and consumers. A digitised supply chain also provides opportunities for completely new revenue models beyond the redesign of processes. Specifically, a whole range of modern business models are able to monitor a product past the handover to the consumer, and on to actual use. The aim of this chapter is to explain the complexities of the supply chain during the age of COVID-19, which contributed to an improvement in social value for consumers, especially in digitizing the process. This paper is inspired by several sources, such as Deloitte Insight released at the end of 2020, which raises the future of mobility after the COVID-19 pandemic (Corwin, Zarif, Berdichevskiy and Pankratz, 2020). Corwin et al (2020) mention the term ecosystem when describing the reality of mobility during a pandemic. Viswanadham and Samvedi (2013), on the other hand, define the supply chain ecosystem as the elements of the supply chain as well as the entities that control the movement of goods, knowledge, and money across the supply chain. Today’s supply chains, as the final frontier, are being re-architected as environments coordinated by central networks. In this chapter, there are a numbers of case study about limited mobility during a pandemic that triggers service providers to search for innovative ways to survive. Second, with regard to numerous parties promoting increasingly large online shopping activities and enabling the home business sector to be easier and easier to enter the community, this is what is known as consumer social value. This case study will be taken from a variety of Asian countries, one of which is Indonesia. Third, the next challenge facing businesses in managing supply chains will raise the social value of consumers, especially when the pandemic ends.

Keywords

Covid-19, supply chain, social value, customer behavior

1. Introduction

Beyond supply-side disruptions, there have been direct shocks on the demand side for a wide range of primary extractive, industrial, and service products. The Sectors. The shock of demand has been for certain goods, these are especially destructive, like oil and milk products, where there is excess stock owing to scarcity of storage space and destruction, perishable ones.
A comprehensive picture of the supply chain movements of its members has been published by the World Federation of Sporting Goods Industry as the world continues to grapple with COVID-19 and consolidation, online sales and sustainable products tend to be the outstanding trends.
As the COVID-19 pandemic continues to spread, so must our response and the solutions we propose. Supply chain management has been more complex during this epidemic, with multi-country shortages and logistics issues that can affect where and how people undergo care around the world.
As the pandemic crisis deepened and nations started to institute lockdowns, something entirely different has been encountered by supply chains: systemic demand shocks, where consumers stock up on consumer staples to comply with limits on movements, often purchasing supplies for months in a single day.
The supply chain is the backbone of modern industry, and these days there are some unprecedented changes facing it. In the midst of COVID-19, supply chain executives faced an exceptionally severe series of challenges. As the pandemic persists and ultimately subsides, these challenges will change the industry.
The Accelerating Trends report outlines five main categories that can be evaluated through Foley’s Resiliency Review assessment tool, including dependence on JIT models and evaluation of contractual risk allocation, as manufacturers review supply chain processes to reduce potential risk.
Examples from countries. In Indonesia, In order to improve the resilience of their market operations during the COVID-19 pandemic, Gojek’s online transport services delivered feature service solutions to over 100,000 Micro, Small and Medium Enterprises (MSMEs). On-demand platforms consist of GoFood, GoPay, or GoSend, helping millions of customers meet MSMEs. In addition, GoBiz, an easy-to-use multifunctional framework to assist MSMEs in managing and developing online companies, includes numerous technologies to promote industry.
An agile supply chain is important in a struggling post-COVID-19 economy to manage costs and to respond to customer demand. And, the ability to react rapidly is the key to satisfying customer demand. Supply chains, their re-organisation as platform-mediated ecosystems, are now primed for their biggest change yet. The Platform refers to a technology that allows open interaction between market players, such as producers and consumers. A digitised supply chain also provides opportunities for completely new revenue models beyond the redesign of processes. Specifically, a whole range of modern business models are able to monitor a product past the handover to the consumer, and on to actual use. The aim of this chapter is to explain the complexities of the supply chain during the age of COVID-19, which contributed to an improvement in social value for consumers, especially in digitizing the process. This paper is inspired by several sources, such as Delloitte Insight released at the end of 2020, which raises the future of mobility after the COVID-19 pandemic (Corwin, Zarif, Berdichevskiy and Pankratz, 2020). Corwin et al (2020) mention the term ecosystem when describing the reality of mobility during a pandemic. Viswanadham and Samvedi (2013), on the other hand, define the supply chain ecosystem as the elements of the supply chain as well as the entities that control the movement of goods, knowledge, and money across the supply chain. Today’s supply chains, as the final frontier, are being re-architected as environments coordinated by central networks. In this chapter, there are a numbers of case study about limited mobility during a pandemic that triggers service providers to search for innovative ways to survive. Second, about numerous parties promoting increasingly large online shopping activities and enabling the home business sector to be easier and easier to enter the community, this is what is known as consumer social value. This case study will be taken from a variety of Asian countries, one of which is Indonesia. Third, the next challenge facing businesses in managing supply chains will raise the social value of consumers, especially when the pandemic ends.

2. Limited Mobility during the Pandemic

In the year 2020, a pandemic struck, affecting all facets of life. The topic of the supply chain is one of them. When countries agree to impose a ban on mobility for their residents, the industry threw for a loop. Penn State researchers provide an informed analysis of the coronavirus pandemic’s effects on supply chain businesses, emphasising transportation and logistics operators as front-line, critical service providers. Countries worldwide are implementing strategies based on the “stay at home” and “flatten the curve” movements to promote decreased public participation. Campaigns in other nations, accompanied by policies to shut down or alter government practices, will help minimize the number of people affected by COVID-19. Although Savaris et al (2021) found that this policy did not resolving in reducing COVID-19 transmission.
During a pandemic, the transportation and logistics industry plays a critical role in keeping products moving across supply chains. The term “supply chain” refers to a system that connects all major industries. Supply chains do not exist in isolation but rather span and link various business sectors (Ivanov and Das, 2020). Based on Yelp.com, Sraders and Lambert (2020) estimated that 140,104 companies temporarily suspended at the onset of the pandemic, but that figure had fallen to 65,769 by August. However, the downturn is not entirely due to reopenings; several businesses have closed. According to Yelp.com’s Local Economic Impact Report, the pandemic has forced the closure of over 97,966 businesses.
Mobility restrictions had a significant impact on how work is and when it is available. Since public transportation usually brings people into close quarters in an enclosed area. Severe mobility restrictions implemented to help flatten the curve of COVID-19 infections, forcing entire communities to alter their travel habits and shaping a global change unlike any other in human history (MERS, SARS, Ebola). Changes in social interactions in the sense of many recent viral infections and human-to-human communication are some of the main transmission mechanisms for many viral outbreaks (Rasul, 2020). Furthermore, for many landlocked countries where ground transportation may delay, air freight is often used as a required means of ensuring that goods are imported and exported on time. Last-mile distribution is significant in mobility and transportation, as it represents the end of a supply chain’s journey from initial development to final customer possession. Notably, as stores close, more people are turning to the internet to shop.
According to Sharma et al., people’s behaviour changes during pandemics, with people turning to online shopping, click-and-collect, and contactless distribution services, and increased use in specific product categories to Sharma et al. (2021). Interestingly, during the COVID-19 outbreak, various control policies are closely linked to safety knowledge, driving and travel behaviour, and thus have an indirect impact on the incidence of accidents (Zhang et al, 2021). According to a new Deloitte survey, China is the prime manufacturer of much of the world’s high-value products, and over 200 of the Fortune Global 500 firms have a presence in Wuhan. In this province, the virus has become the most prevalent. According to riskmethods, a supply chain risk management software, every third business has a significant Chinese client, and 81 percent of global businesses use Chinese suppliers. Therefore, pandemic change the world through inability of some business to overcome the effect when pandemic in early stage of presence in the world.
Because of product availability or funding ease, many businesses tend to work with a single vendor. For example, a company can choose to order an entire batch of plastic from a single vendor in China, where the supply is more significant play an important role and the price is lower than any vendors. Ordering from a single provider can offer additional benefits such as reduced shipping costs and bargaining power. Fortune 1000 firms with significant supply chain operations in China encountered direct commodity and material flow interruptions, indicating that global supply chain management impacts have already occurred. Purchasing and supply managers must decide what and how much value single-source partnerships bring at the strategic and top management levels (Leenders et al., 2002). Many businesses consider sourcing decisions to be among the most important in their operations. Today, single sourcing is becoming more common. The decision to sole source an object, particularly for manufacturing, has several advantages and disadvantages to consider.

3. Consumer Social Value

3.1. Traditional Consumer Social Value

According to Kahle and Xie (2019), consumer social importance is one of the most important factors to consider when purchasing a commodity (following Rokeach 1973). People with a single value expect various functions, distribution, pricing, and, most importantly, communication about a commodity (Kahle & Xie, 2019). Effectively targeting people in various value markets would be a critical component of consumer growth for several brands (Frank, Andreas & Robert, 2001; Kropp, Lavack & Holden, 1999; Raval & Subramanian, 2004). Pitts, Canty, and Tsalikis provide examples of the usefulness of connecting principles to customer preference (Kahle & Xie, 2019). They show that consumers will increase the purchase intentions to advertising showing value-consistent rather than advertising showing vale-inconsistent. It means that they will buy the product or brand that fulfill their value, and this makes marketing communication should be able to establish the link between personal values and brands (Kim, Boush, Marquardt & Kahle, 2006).
According to Contrera (2020), social worth is “a normal behaviour for a culture or community that is spread widely through groups of individuals and customers that place a greater focus on their looks” (Vignem et al., 1998, Smith, 1975). Social ideals play a crucial role in deciding a person’s brand choice, which reflects how people perceive the person’s personality (Petrof, Elie and Vlahopoulos, 1982, Ringold, 1998). This psychological aspect leads to the buying of high-end goods to enhance one’s status or express one’s self-identity and social standing.
Donation is one of the most common ways to realize one’s social worth. Some donation practices, such as philanthropy, are done to create a certain level of social status. A multimillionaire actor like Michael Schumacher, for example, has contributed over $6 million of his fortune to numerous children’s welfare programs in Eastern Europe and South America. With an annual salary of $140 million, his donation is insignificant; however, he has earned acclaim from nearly all, resulting in highly positive attention that elevates him to the top of society’s hierarchy.
The theory about values can be written down from four perspective. First is Maslow theory, second is cognitive consistency, third is social adaptation and fourth is functional theory. The philosophy of Abraham Maslow commonly discussed in undergraduate schools. It believes that people improve psychologically by going through a hierarchical transformation of beliefs (or wants, as Maslow refers to them), from therapeutic to protection to social to esteem, and eventually to self-actualization. Each level necessitates mastery of previous levels, and each higher stage is technically more advanced than the one before it. Maslow’s values or stages are undoubtedly valid and valuable in consumer psychology, but his supposed hierarchical viewpoint is highly dubious from an analytical standpoint (Hilles & Kahle, 1985: Kahle, Homer, O’Brien, & Boush, 1997: Kahle, Kulka, & Klingel 1980).
According to Rokeach (1973), the rules of cognitive continuity extend as well to beliefs as they do to other cognitions. Values, he believes, shape and change according to the same concepts as other cognitions. A subtly different interpretation of this viewpoint assumes that principles are cognitive constructs used to create adaptive abstractions regarding social context adaptation. As a result, in Piagetian philosophy, values function and change (e.g., Piaget, 1952). A similar point of view developed by Schwartz and Bilsky (1987). They see values as mental manifestations of biological needs, social needs, and community demands for life and health. Schwartz (1996) expanded their viewpoint to form a holistic view of the interconnected value system (Schwartz, 1996).
Sheth, Newman, & Gross, 1991; Sheth, Stern, & Gross, 1991) stress behaviours rather than principles in functional theory (e.g., Kalbe, Kambara, & Rose, 1996; Kelman, 1974, 1974; Sheth, Newman, & Gross, 1991; Sheth, Stern, & Gross, 1991). It means that ideals are only essential at certain times. Some behaviours evolve and shift due to incentives and penalties rather than beliefs (Beklona, Kline, & Morrison, 2004), while others develop and change as a result of psychoanalytic and psychosexual stress rather than values (Beklona, Kline, & Morrison, 2004). However, certain behaviours do shape, alter, and work to fulfil values. According to this viewpoint, the importance of values determined by the currently active attitudes.
Consumer value research has aided commercial strategy in new product creation, brand identification and placement, campaign campaigns, and market segmentation (Kahle, 1996). (Vriens & Hofstede, 2000). Later considers have connected shopper values in portioning the worldwide showcase by generational cohorts (Homer, 1993; Schewe & Meredith, 2004), customer monetary choices (Vitt, 2004), music (Dolfsma, 2004), sports interface (Florenthal & Shoham, 2000), and retailing attributes (Erdem & Oumlil, 1999; Goldsmith, Freiden, & Kilsheimer, 1993; Rose, Shoham, Kahle, & Batra, 1994). The essential portion is precisely screening the changes in buyer values and applying the values suitably in several settings (Kassarjian, 1983; Martin, 1997; McQuarrie & Langmeyer, 1985). Fisher and Katz (2000) suggested that early control strategies may well be supportive through including measurable control, expanding reaction namelessness, and being touchy to test characteristics. Future checking of buyer values will likely demonstrate more valuable when connected keenly and carefully to a particular item region in conjunction with other valuable measures and understand the versatile centrality of the values in respondents’ lives. With the improvement of innovation and alter, it is vital to reexamine the estimation exactness at customary interims to develop patterns and subtleties.
Another new trend is the post-modern interpretation of market expectations (e.g. Dolfsma, 2004; Hirschman, 1985; Thompson & Troester, 2002). Despite their interpretive approach to market values, postmodernists contribute to the field by applying detailed explanations to the broader context developed by social scientists’ ongoing efforts. The depth of analysis in some postmodern studies helps one better understand the background problems present in meaning science. For example, analyses of materialism combined a qualitative interpretative approach to implementing a quantitative trait scale (e.g., Belk, 1985; Richins & Dawson, 1992).
In 2011, Professor M.E Porter of Harvard University introduced new concept of creating shared value of CSV. The creating shared value is how to create value between companies and society, solving social issues and aim to strengthen corporate profits and competitiveness. Furthermore, the activity of corporate social responsibility is aimed not to be only responsible but also to create opportunity for company to enhance its competitiveness. Strandberg (2014) identified a potential risk for society coming from the severe income disparity and high structural unemployment and underemployment from World Economic Forum (2014).
KPMG (2020) researched about changing of Customer Value due to Pandemic. Political, societal, fiscal, and technical changes divided into four categories. They also noted that in just a few months, a century of transition has occurred.
The political consists of 1) Prohibitions in response to potential waves, 2) Delays in the development of a vaccine (late 2021 before widely available), and 3) Delays in the development of a vaccine (late 2021 before widely available). 3) Government and company debt levels are also very high. 4) Financial and economic incentive packages, 5) Tax hikes, lower disposable wages, 6) Sustainable oil, consumption of plastics, and 7) Extension of the deadline for resolution
Changes in social circumstances may include the following: 1) New ideals, both environmental and social, are emerging. 2) Working at home has become the modern trend. 3) The emergence of a sense of culture, a sense of location, and localization 4) The possibility of being laid off, 5) Personal danger and safety awareness 6) Changes in buying preferences 7) New customer practices dependent on beliefs.
Low GDP projections, 2) Decreases in consumer demand — savings growth, 3) Some consumers have prospered, 4) Consumer emphasis on price and value, 5) Investment restrictions — but digital is a priority, 6) Long-term economic scarring for some sectors, and 7) Spending curtailed, cost scrutiny is all shifted in the economic situation.
We also see that the developments mentioned above aided by technical advancements such as 1) cyber defence, in-home control, 2) accelerated automation, e-commerce, Etc. 3) Shift from digitizing processes to digitizing consumer journeys; 4) Supply chain risk management; 5) Data aggregation, one customer view; 6) Onshoring and local sourcing, and 7) Rapid digital adoption.
COVID-19 is pushing all sectors to rethink their growth strategies, capital structures, and routes to market, according to KPMG (2020). Four major macro trends are likely to influence how these decisions are taken.
– Economic impact: With disaster looming, businesses’ right-sizing and cost-cutting efforts are likely to exacerbate economic woes. To recognise all challenges and opportunities, businesses must easily consider the economic effect of COVID-19 on their consumer base.
– The Rise of Technology: Companies can quickly embrace digital to reduce service costs and meet e-commerce demand. When face-to-face market-building options are limited, they must also handle cyber risk, simplify their product range, and understand how to maintain brand differentiation.
– Brand Trust Is Eroding: Brand trust is eroding, and reputational risk is exceptionally high if company standards do not align with consumers. Companies must foster a sense of mission by prioritizing consumer and employee protection while simultaneously contributing to environmental and social policies.
– The home is the new hub: Businesses should look to capitalize on the rise of the population, localization, and new “essentials” like homeware. As working from home becomes more common, they must understand the home’s shifting position and its versatility in a location away from metropolitan centres.
Furthermore, marketing trends influenced by the need to defend oneself. Consumer behaviour has significantly influenced consumer behaviour, ranging from sitting at home and skipping public transportation to prioritizing savings, overspending and even moving to a new home. Going on vacation, on the other hand, seems to be a non-negotiable for many. To discover the natural openings in their market, businesses must first consider how their consumers feel and behave. The survey of KPMG (2020) shows the four consumer trends:
1) About 20% want to spend as much time as possible at home. Despite this, buyers do not want to forego vacations, and scheduled bookings are rising over time:

• Oct-Dec 2020 = 45%
• Jan-June 2021 = 56%
• July-Dec 2021= 63%

2) The effect will be felt for more than a year, according to 32% of customers. The COVID-19 has prompted 13% of people to return home:

• 4 percent for financial reasons
• As a result of commuting from home more = 4%
• For my own personal protection = 5%

3) In the next 6-12 months, consumer net investment will be negative 21% in all segments, compared to pre-COVID-19. In comparison to pre-COVID-19, public transportation faces a significant lack of confidence.

• Public transportation = -37%
• Owning a car = 25%
• Walking/cycling = 9%

4) Savings was prioritized by about 36% of respondents over other forms of spending. Two out of every five people are concerned about their financial stability in 2021. In 2021, 43% of people are worried, nervous, or overwhelmed about their financial stability.

Figure 1. Consumer Trends during pandemic on 2020 (KPMG, 2020).

3.2. Changing Consumer Motives during Pandemic

During the COVID-19 pandemic, Koch (2020) explores the shopping impulses that influence online buying behaviour. They look at how hedonic and utilitarian incentives, which affect e-commerce purchasing behaviour in the past, apply in these unusual circumstances. They investigate the impact of normative influences. They use mean comparisons to see how quarantining as an indicator of social distance, and sociodemographic characteristics influence consumers’ shopping motives. According to their results, hedonic inspiration, accompanied by utilitarian and normative motivations, is the most significant indicator of online shopping intentions. They discover that external normative influences, such as newspaper coverage, influence customer behaviour, while pressures from near social networks, such as families and friends, do not. Furthermore, after the pandemic, people who practice social distancing, generation Z, and women had a higher hedonic desire to partake in online shopping.
Another research conducted in a quarantined region in Romania by Butu, Bruna, Tanasa (2020) found that during the COVID-19 pandemic, people avoided hypermarkets and supermarkets in favour of convenience stores, butcher shops, and grocery stores. Simultaneously, local farmers have seized the opportunity to meet their final consumers via home delivery. Consumption habits have shifted due to the pandemic that shut down commercial chains, as has the retention of surplus inventory. This resulted in a decrease in the consumption of essential food products/fresh food, causing the agro-industrial sector to fail. However, for most European countries, including Romania, internet orders have resulted in explosive agriculture growth. Short food supply chains are a supplement to public alimentation, and they have the potential to become a long-term and viable option after the crisis. Given the consequences of COVID-19, countries must excel in maintaining food supply chains to avoid significant food shortages. Cash was chosen by almost half of the respondents (47%), while bank transfer was the most diminutive favoured payment form. Only those who choose home delivery (before, after, and after the crisis) had a lower proportion of respondents paid with cash than those who paid with cards or money transfers. This shows that after the COVID-19 crisis, the general public became aware that card purchases or bank transactions can be practical COVID-19 prevention steps. The buyers’ action bolstered by the fact that they are cash-strapped due to the state of emergency’s rules prohibiting cash withdrawals from ATMs.

3.3. Usage of online services during Pandemic

Momentum Works data shows that the gross transaction value or GMV of Grab Food is US $ 5.9 billion or around Rp 83 trillion in 2020. Meanwhile, GoFood is only US $ 2 billion or Rp 28 trillion. Grab also made up nearly half of the total GMV food delivery messages in Southeast Asia over the past year, despite the coronavirus pandemic. In total, Indonesia’s contribution is the largest in the region at US $ 3.7 billion (Momentum Works, 2020). The highest transaction value in Indonesia was US $ 3.7 billion. Followed by Thailand with US $ 2.8 billion and Singapore with US $ 2.4 billion in 2020 (Tech In Asia, 2020). See Figure 2 the Gross Merchandise Value for Food Order. In Indonesia, the type of consumer digital expenditure in monthly basis during Pandemic is food, followed by goods delivery and transportation (see Figure 3).

Figure 2. The Gross Merchandise Value for Food service (Momentum Works, 2020)

Figure 3. Type of consumer digital expenditure in monthly basis during Pandemic (Demographic Institute, Faculty of Economics and Business Universitas Indonesia, 2020)

4. Proposition for Future Supply Chain

Deloitte (2020) hypothesized that customer behaviour changes not only now but also in the long term and built and validated each contradiction’s proposition. Since consumers were required to use internet platforms to buy merchandise or use services, it estimated that a significant percentage of customers would continue to use such channels long after stores reopen.
The below are the significant changes: 1. Change Sustainability. The majority of these developments (for example, the rise of online medicine shopping) are imposed constraints and would have a diminishing impact after the introductory period. Indeed, most consumers anticipate that the recession would significantly impact their behaviour, with the magnitude of change decreasing after the crisis. Despite the noticeable drop in use, up to half of the unprecedented and coerced change in consumption would last past the present recession and have a long-term impact on consumer behaviour. 2. Demo-graphics differentiation. Aside from the change’s long-term viability, the survey uncovered another reality that cut through both propositions. Although lower-income households do not display significant behaviour changes during the COVID-19 crisis, higher-income households show more significant changes. As a result, elderly adults can change their eating patterns and then revert to “old habits” after the chance of infection has been reduced to a minimum. 3. A catalyst for change COVID-19 prompted the closure of countries across the globe and improvements in customer behaviour. Countries imposed restrictions on personal communications and activities to slow the spread of COVID-19 and secure their healthcare systems. These policies are the driving force behind any changes in customer behaviour, and they would affect not just before but also after the lockout.
In the sharing economy, customer demographics still play a part. Compared to older generations, younger generations claim they will use shared resources for work and holiday more often during the crisis. There are no significant variations between the various living environments, from rural to urban, but income influences potential customer behaviour. Around 50% of citizens with a higher monthly income expect to keep their sharing economy constant after the crisis, while 70% of those with the lowest income plan to keep their consumption constant after the crisis, indicating lower use levels of these sharing services.
The findings suggest that the COVID-19 crisis has a significant impact on customer behaviour in almost every segment. New rules prompt short-term changes, and limits cause long-term changes. Consumers are forced to change their behaviours and ways of life in almost every part of their lives, including travel, shopping, sports, and social gatherings, due to the crisis. Most of these changes (e.g., the increase in online shopping of medicine) are related to forced restrictions and decreased after the significant phase. However, some of the changes (e.g.purchases at local traders) allow consumers to experience benefits they did not see before. Indeed, most consumers anticipate that the recession would significantly impact their behaviour, with the magnitude of change decreasing after the crisis. When measured in percentages, changes in consumer behaviour after COVID-19 was between 25 and 50 percent of those seen during the pandemic. Digital sporting programs, for example, saw a 20 percent rise in use during the recession. After COVID-19, 10% of users claim they will continue to use the services regularly. Despite the noticeable drop in use, up to half of the unprecedented and coerced change in consumption would last past the present recession and have a long-term impact on consumer behaviour.

4.1. Co-creation

A social benefit co-creation viewpoint, which encompasses the values of various groups in society, including profit and non-profit organizations, can be used to address the COVID-19 problem (Ratten, 2020). Social benefit development focuses on how social objectives should be integrated into corporate practices, bridging the gap between conventional entrepreneurial entrepreneurship and others who pursue a more societal approach to profit creation. According to Goh et al. (2016), a social benefit building strategy will help society mitigate rural-urban health gaps. This suggests that in public debates on social benefit, a focus on healthier societies included. To generate positive meaning in society, social goals that are by existing cultural norms must prioritize. This allows for more non-profit or altruistic goals to incorporated into municipal agendas on the role of social stability in society.
Because of the societal effects of COVID-19, timely and up-to-date knowledge must be accessible to create social meaning. This entails fostering an open-minded community that prioritizes social gains over financial gain. Since the epidemic has had both economic and cultural consequences, it is crucial to encourage an inclusive approach to information dissemination. This would allow for the collaborative use of human knowledge to address or assist in alleviating a pressing global social issue (Kuckertz et al., 2020). Though open innovation can address the current COVID-19 crisis, there has been competition among governments for the procurement of necessary medical supplies. As a result, there is a conflict in cooperating and still protecting one’s interests. As a result, organisations must balance trying to support humanity but still defending their interests in today’s social environment.
In terms of social enterprise, the COVID-19 crisis has inevitable optimistic consequences. Sharing money and assisting society’s most disadvantaged groups are two examples. Due to a shortage of commercial seedlings and a need for people to grow their food, the seed savers network in Australia grew in prominence during the COVID-19 crisis. The seed savers network maintains a seed library that can use to start new plants. They aim to conserve open-pollinated and heritage varieties that are not widely available commercially. This ensures they have seeds that are ideal for environments that promote self-sufficiency in individuals. Seedlings help cut food prices while still offering a recreational activity, thanks to lower wage levels and more people living at home. This is advantageous because people are concentrating on being more self-sufficient and saving money through the recession. Another indicator of social benefit co-creation is the reduction in homelessness in society due to a rehousing policy. This attributed to the socioeconomic implications of COVID-19, which have resulted in social welfare policymakers using hotels and apartments that tourists once reserved to shelter homeless people. Because most short-term accommodations use for profit-making purposes, this technique was not previously applicable. Due to the closure of international borders and the use of mandatory regional conditions by policymakers to reduce the virus’s transmission rate, hotels and other short-term lodging facilities are also being used by social causes. As a result, while the COVID-19 crisis has had negative consequences, it has also provided opportunities for constructive spillovers in social policy measures. This is due to the use of an entrepreneurial approach in social policy.

5. Conclusion

The chapter explains about delivering social value through supply chain. The COVID-19 pandemic did change the behavior of customer on their preferences and values. The situation also forces the business to follow the new preferences from customer. Social value is one of the values that finds a way through online supply chain, mostly for basic needs and utilitarian motives.
We find that the social values are shared rapidly through the online platform and supported with robust supply chain from the logistic provider and online services. We also find the transaction of online services increased not only in Indonesia, but also other countries in South East Asia. Our reflection suggest that the behavior will continue post-pandemic and the business side will still need to adjust the post-pandemic behavior from customer as well. Social value is now even more real through the co-creation.

6. Acknowledgment

We thank Vini Marianie as our research assistant.

References

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IMRAN, R. (2020). The Economics of Viral Outbreaks. Retrieved from UCL: https://www.ucl.ac.uk/~uctpimr/research/Epidemic_PP.pdf

International, K. (2020). Responding to consumer trends in the new reality. KPMG International.

Ivanov, D., & Das, A. (2020). Coronavirus (COVID-19/SARS-CoV-2) and Supply Chain Resilience: A Research Note. International Journal Integrated Supply Chain Management, 13(1).

Jie Zhang, B. F. (2021). The effect of human mobility and control measures on traffic safety during COVID-19 pandemic. PLoS ONE.

Julia Koch, B. F. (2020). Online Shopping Motives during the COVID-19 Pandemic—Lessons from the Crisis. Sustainibility, 12(10247).

Manu Sharma, S. L. (2020). Developing a framework for enhancing survivability of sustainable supply chains during and post-COVID-19 pandemic. International Journal of Logistics Research and Applications, 1-22.

  1. Viswanadham, A. S. (2013). Supplier selection based on supply chain ecosystem, performance and risk criteria. International Journal of Production Research, 51(21), 6484-6498.

Ratten, V. (2020). Coronavirus (COVID-19) and Social Value Co-Creation. International Journal of Sociology and Social Policy.

  1. F. Savaris, G. P. (2021). Stay-at-home policy is a case of exception fallacy: an internet-based ecological study. Nature Portofolio.
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