HERoS – COVID19 (Health Emergency Response in Interconnected Systems)

Wednesday 24.11. at 15:15-16:30
Gyöngyi Kovács, Hanken School of Economics, HUMLOG Institute, Finland

Economic Impact of Supply Chain Disruptions during COVID-19 Pandemic

Stephen Ching, University of Hong Kong
Tat-Kei Lai, IESEG School of Management, France
Kam-Ming Wan, Hanken School of Economics, Finland

Personal Protective Equipment
Supply chaindisruptions
COVID-19 pandemic

The COVID-19 pandemic has exposed the fragility of global supply chains because disruptions were widespread and occurred in
many industries including medical supplies and devices, food, and computer chips. As the COVID-19 pandemic is a large and
exogenous shock to global supply chains, governments worldwide have implemented vastly different policies to reduce the spread of the COVID-19 virus. Therefore, differences in government policies related to the pandemic offer a pseudo-experiment setting to examine the economic impact of supply chain disruptions. This study first examines the economic impact of such disruptions in medical Personal Protective Equipment (PPE) industry during the COVID-19 pandemic. The PPE industry is consciously chosen due to its importance as indicated by the massive shortages of PPE in the early months of the COVID-19 outbreak. This study uses a unique dataset on global supply chains to estimate the economic damage of such disruptions on firms with pre-existing supply chain relationships pre-COVID. Last, this study also investigates whether and to what extent firms adjust their supply chain relationships in the medical PPE industry post-COVID.

Opening up after COVID-19: lessons learned from secondary schools and nursing homes

Anne Lia Cremers, VU University, Austria
Kees Boersma, VU University, Austria
Ivett Kover, VU University, Austria
Cato Janssen, VU University, Austria
Yiannis Kyratsis, VU University, Austria

crisis response
participatory governance
decision making
nursing homes
secondary schools

Background: Stakeholder networks have a certain level of autonomy to customize authorities’ top-down COVID-19 measures to
their own needs, fueling variations in crisis response. We use a participatory governance lens to understand how this
customization affects decision-making at the local level. This study aims to identify lessons learned for effective crisis response
within secondary schools and nursing homes during the (post-)COVID-19 pandemic.
Methods: Two-month visual ethnographic fieldwork was conducted in nursing homes and secondary schools, 46 institutional
stakeholders and 39 community stakeholders were interviewed in the Netherlands, Ireland, and Finland.
Findings: The main focus of the COVID-19 crisis response was on reducing infected cases, however increasing realization evolved
that measures triggered a plethora of unintended consequences. Despite differences in risk and vulnerabilities, respondents in
both nursing homes and schools described high levels of workload, anxiety and stress. Elderly often felt distressed and lonely or
passed away alone. Many students lost motivation, fell behind with school work, dealt with loneliness and some with depression.
Most respondents argued that the human aspect in this crisis response had been forgotten, especially during rigid isolation or
nursing home and school closures. Few elderly and students enjoyed the slower pace of life. Collaboration between institutional
stakeholders intensified becoming more informal and effective. Information flows in the workplace were often problematic due to rapid policy changes causing uncertainty. Construction of buildings and the availability of capacity and recourses hugely impacted stakeholders’ ability to deal with this crisis.
Conclusion: While opening up during/after COVID-19, top-down measures are continuously adjusted to the local level
influencing decision-making. Given the traumas and stress experienced by respondents, there is an urgent need for healing within organizations and creating a ‘new normal’.

Best governance practices in the medical supply chain

Yiannis Kyratsis, Vrije Universiteit Amsterdam, The Netherlands
Kees Boersma, Vrije Universiteit Amsterdam, The Netherlands
Ioanna Falagara Sigala, Hanken School of Economics / HUMLOG Institute, Finland
Gyöngyi Kovács, Hanken School of Economics / HUMLOG Institute, Finland

Health care governance
Medical supply chain
Joint procurement

The COVID-19 pandemic has changed how we govern medical supply chains. During the pandemic, unprecedented joint procurement initiatives have been set up, such as the European Union’s joint procurement of personal protective equipment and
recently, vaccines, and the COVAX access to vaccines accelerator. Both comprise innovative collaborative mechanisms for vaccine
procurement and distribution, yet differ across membership, strategies and governance.

The EU’s procurement for innovation mechanism required novel approaches in contract development and management, plus new governing institutions (first RescEU, now HERA). The EU faced unique challenges with one of their co-funded vaccine developers that resulted in disputes over delivery volumes and schedules. Differences in health governance systems and vaccination programmes across the EU further result in cross-border disputes, export stops, and differences in coverage.

The COVAX initiative includes the Coalition for Epidemic Preparedness Innovations, Gavi, the World Health Organization,
UNICEF, and governments, global health organizations, manufacturers, donors, and the private sector and donors. It was set up
for the purposes of economies of scale in procurement, economies of scope in kitting, packing and distribution, and global health equity. COVAX’ primary challenge is that contributing nations delimit their contribution to funding instead of vaccines.

This paper investigates the governance mechanisms of joint procurement initiatives in medical supply chains. It examines best
practices and challenges by contrasting ‘on the ground’ experiences from both the EU and the COVAX’ cross-border COVID-19
vaccine procurement and distribution. In addition, it synthesises input by experts from various institutions and Member States of
the two initiatives.