The effects of COVID-19 pandemic on business model elements: Insights from Greek micro and small retailers

The exogenous shock of COVID-19 strongly challenged Greek retail, especially in small and micro-sized enterprises (SMiEs). In particular, the decline of customer visits in physical retail stores caused by lockdowns and other restrictive measures led to a business threatening reduction of sales. As a result, adjusting business model elements became one of the first priorities for Greek business owners. This paper focuses on the effects of the COVID-19 pandemic on business model elements of Greek SMiE retailers. To investigate this impact, eight expert interviews with Greek SMiE retailers were conducted. Results show that the pandemic situation directly and indirectly affected most of the business model elements of Greek SMiE retailers. Naturally, each studied company displayed unique characteristics as well as different needs and priorities, which facilitated the specific changes in their business model in order to become profitable. However, especially opportunities offered by digital technologies, such as web shops, online advertising, and online customer engagement, were most frequently mentioned to influence business model elements. Thus, this research contributes to the existing body of knowledge in the field of business models and information systems, by providing a business owner perspective on how business model elements were adjusted to the circumstances of the COVID-19 pandemic.