Research Article: 2021 Vol: 27 Issue: 3
Siti Nurulaini Azmi, Universiti Malaysia Kelantan
Mohd Rafi bin Yaacob, Universiti Malaysia Kelantan
Muhammad Khalique, Universiti Malaysia Kelantan and Mirpur University of Science and Technology
Khushbakht Hina, National University of Modern languages Islamabad
Noorshella Che Nawi, Universiti Malaysia Kelantan
The main objective of this study was to display the data on the effect of direct and indirect effect of flood on small business in Kelantan Malaysia. To achieve the selected objective of this study, primary data were collected through structured survey form. A purposive sampling technique was used to select the sample size of the research. In this study, 380 samples were used for the purpose of data analysis. Statistical Package for Social Sciences (SPSS) version 23 was use to conduct the descriptive analysis of the selected study. In addition, the gathered data has the possible to re-analyse for full empirical research relating to post flood disaster recovery of small business in Kelantan Malaysia.
Post Disaster, Flood, Direct Effect, Indirect Effect, Small Business, Malaysia.
Small business plays a very important contribution in the development and growth of Malaysian economy. In Malaysia approximately 95% business units are based on small and medium scale businesses. Kelantan is one of the most importantstates of Malaysia having plenty of natural resources and human capital with entrepreneurial mind-set. Despite the competitive edge this state is mostly hit by natural disaster for example in 2014 many small business were closed due to the flood. Few small businesses were able to recover their business. The data of small businesses are very important to examine the business recovery. In this research, the data is very crucial to comprehend the effect of direct and indirect impact of disaster and business recovery of small business in Kelantan Malaysia. In contemporary business environment organizational resilience is recognized as one of the most vital assets for the success and sustainability of the business recovery of small business in every sector in the world (Khalique, et al., 2020). There is great need to explore the direct and indirect effect of disaster on small business and their business recovery potentials. This study is very useful to the research community to examine the post effect of flood disaster on the business performance of small business.
This is a comprehensive study accessible for examining the influence of disaster on the business recovery of small business in Kelantan Malaysia. This is very useful for potential researchers who intend to execute comparative research related to flood disaster and its impact on the business recovery in other small business operating in emerging or developed economies around the world. This study is also valuable for future researchers to conduct their studies in others sectors such as manufacturing, agriculture and services sectors. This study is beneficial for investigators who intend to reprocess or reanalyse it to examine the likely association between the direct and indirect effect of flood disaster and business recovery of small business in developing economies.
This study required to expose various avenues to understand the effect of flood disaster on the business recovery of small business in Kelantan Malaysia. This study attempt to examine the comparative impact of post flood disaster in respect of direct and indirect effect on business recovery (Asgary, Azimi, & Anjum, 2013). In addition, the study can be used to examine the impact of post flood effect on ethnicity background, education and income basis also.
In this study a structured survey method was used to collect the from 380 small business owners from different area of Kelantan Malaysia. A purposive sampling technique was used to pick the targeted respondents. A structured survey form was employed to grab the perception of the respondents about the constructs. The structured survey form consists of two sections namely demographic profile and employed constructs. Regarding demographic information there were three parts for demographic information, which are the general information of the owner/manager, the company profile, and the past-disaster experience. All items of the demographic survey were adapted and adopted from various resources and scholars (Asgary, et al., 2012; Runyan, 2006; SME Corporation, 2015). Furthermore, the determinant-choice question type of scale was used for this part, which is respondents have to choose and select only one from the several possible options given in the measurement (Zikmund, et al., 2013). Table 1 shows the items in Part A of the questionnaires survey form.
Demographic Profile of Respondents and their Business (n=380)
|Types of Industry|
|Master and Above||8||2.1|
|My income only comes from this business||320||84.2|
|My income domes from this business and others||60||15.8|
|Ownership Status (Premise)|
|District of business|
|Types of Business|
|Business Hit by Flood|
|How Many Times Hit Flood|
|more than 20 times||24||6.3|
Part B, the disaster impacts consist of direct impacts and indirect impacts. The direct impacts involve two dimensions, which are the external/environmental impacts (5 items) and physical impacts (6 items). The measurement of the disaster was adapted and adopted from (Asgary et al., 2013; Brown, Stevenson, Giovinazzi, Seville, & Vargo, 2015; Kachali et al., 2015). The items, as shown in Table 2, Table 3, Table 4 and Table 5 for the direct and indirect impacts.
Measurement Items of External/Environmental Impacts (direct impacts) (n=380)
|1||Damage to local neighbourhood||51||69||95||103||62|
|2||Difficulty accessing premises/site||44||70||82||116||68|
|3||Damage to the ground surface||39||73||79||135||54|
|4||Damage to or closure of adjacent organizations of buildings||49||61||97||128||45|
|5||Damage to roads and bridges||40||75||105||115||45|
Measurement Items of Physical Impacts (direct impacts) (n=380)
|1||Damage to roads and bridges||62||67||81||103||67|
|2||Non-structural damage (fittings etc.)||58||73||74||115||60|
|3||Damage to inventory or stock||54||72||72||126||56|
|4||Difficulty accessing IT data||62||59||85||119||54|
|5||Office equipment loss or damage||55||70||68||114||73|
|6||Machinery loss or damage||40||28||79||177||66|
Measurement Items of Human and Organizational Impacts (indirect impacts)(n=380)
|2||Changes in staff well being||16||102||134||82||46|
|3||Perceptions of building safety||49||102||107||83||39|
|4||Health and safety issues of staff||43||76||127||80||54|
|6||Availability of staff||0||6||77||167||130|
Measurement Items of for Loss of Utility Impacts (indirect impacts) (n=380)
|5||Communications and roads||0||19||79||179||103|
This study is very valuable when it analysed by using inferential statistical analysis to examine the effect of the direct and indirect effect on the business recovery of small business in Kelantan Malaysia. Empirical findings of the inferential statistics are useable to increase entrepreneurs and policymakers mindfulness level expressing the prominence direct and indirect effect in order to increase business recovery of small business in developing economies. Findings of this study are also very useful for researchers, academicians, students, consultants, policymakers and practitioners for their research, practice and reference. This research adds contribution in prevailing knowledge of business recovery and the business resilience of small business in Kelantan Malaysia and other developing economies.
In-spite of the significant contribution this study has some shortcomings. The data is cross sectional in nature and only descriptive analysis was performed. This study recommend more holistic and longitudinal studies for potential researchers to do empirical analysis for better understanding the concept of business recovery in affected small businesses
Asgary, A., Anjum, M.I., & Azimi, N. (2012).Disaster recovery and business continuity after the 2010 flood in Pakistan: Case of small businesses. International Journal of Disaster Risk Reduction, 2, 46-56.
Asgary, A., Azimi, N., & Anjum, M.I. (2013). Measuring small businesses disaster resiliency: case of small businesses impacted by the 2010 flood in Pakistan. International Journal of Business Continuity and Risk Management, 4(2), 170-187
Brown, C., Stevenson, J., Giovinazzi, S., Seville, E., & Vargo, J. (2015). Factors influencing impacts on and recovery trends of organisations: evidence from the 2010/2011 Canterbury earthquakes. International Journal of Disaster Risk Reduction, 14, 56-72.
Kachali, H., Whitman, Z.R., Stevenson, J.R., Vargo, J., Seville, E., & Wilson, T. (2015). Industry sector recovery following the Canterbury earthquakes. International Journal of Disaster Risk Reduction, 12, 42-52.
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SME Corporation, M. (2015). SMEs are important economic agents for Malaysia’s growth
Zikmund, W.G., Carr, J.C., & Griffin, M. (2013). Business Research Methods (Book Only). Cengage Learning.