International Publications  

Navigating Crisis: Firm Performance and Strategic Responses in Cambodia


Published: 21-Nov-2025
Keyword: COVID-19, firm, employment, strategy, investment

Abstract/Summary

The COVID-19 pandemic significantly impacted Cambodia’s economy, leading to a contraction of -3.1% in 2020, with sharp declines in the service and industry sectors. Cambodian businesses, particularly small and medium enterprises, faced considerable turmoil while already grappling with challenges. This study examined firm performance—including expenditure, profits, revenues, and employment—and investigated the strategies firms employed during crisis periods such as the pandemic. It draws on original firm-level survey data from 361 enterprises in the industry and service sectors, conducted in mid-2022. The findings show that most firms experienced rising expenditures, low revenues, and reduced profits between 2019 and 2021. Employment slightly increased in services in Phnom Penh but declined significantly in provinces. Firms reported low investment in skills development and innovation, with few employees participating in training. Telecommunication and internet access were perceived as major operational barriers. Most firms lacked business networks and access to financing, with 66% identifying financial access as a key constraint due to the complex lending procedures and unfavorable credit conditions. The study recommends targeted business support, skills development, crisis management strategies, infrastructure development, and greater engagement with industry actors to strengthen firm performance.

Open Access: https://doi.org/10.1007/978-981-95-1637-7_4




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