Article Reviews – Power Outages in a Business

Article Reviews – Power Outages in a Business

Article Review 1

Reference Information

Fakih, A., Ghazalian, P., & Ghazzawi, N. (2020). The effects of power outages on the performance of manufacturing firms in the MENA region. Review of Middle East Economics and Finance, 16(3), 20200011.

Purpose of the Study:

The purpose of this study is to examine the impact of power outages on the performance of firms in the MENA region. The study also seeks to contribute to the existing literature on the negative effects of power outages on firms and, subsequently, on the national economic output. Additionally, the study aims to determine whether the impacts of different power outage patterns on firm performance differ according on the size of the organization.

Sampling Comments

“The main empirical results underline negative implications of power outages for the performance of manufacturing firms in the MENA region, particularly in terms of sales and labour productivity growth rates.” “There are negative but relatively smaller effects of power outages on employment growth rate.” “Power outages exhibit variations with firm size, being more significant in the case of smaller firms” (Fakih et al., 2020)

Measures 

The study relied on the WBES database, which comprises observations of firms in the MENA region. The data examines the impact of power outages on firm performance. Among the variables investigated to determine the effect of power outages on firm performance include export activities, sales, productivity, labour composition, and employment.

Findings

One of the findings from the study is that power outages are more pronounced among smaller firms than large firms. Another notable finding from the study is that power outages contribute to significant annual decreases in sales, labour growth, and employment.

Conclusion 

Power outages lead to increased economic costs, reduced product quantities output, and eventually reduced productivity and sales. Firms in the MENA region bear the worst brunt of power outages compared to other developing nations. This is due to the poor power infrastructure present in this region. As firm performance decreases, the negative effect is reflected in the national economic output. There is a need to improve power infrastructure to reduce the impact of power outages on firm performance in the MENA region.

Article Review 2

Reference Information:

 Cissokho, L., & Seck, A. (2013). Electric power outages and the productivity of small and medium enterprises in Senegal. Investment climate and business environment research fund Report, 77(13), 2013.

Purpose of the Study

To assess how power outages affect Senegalese businesses using technical and allocative efficiency. The study also seeks to find out whether alternative power generation mechanisms are effective in reducing the productivity losses brought on by power disruptions.

Sampling Comments

“Electricity contributes directly to firms’ output as a separate input, and indirectly as a determinant of the extent to which other direct inputs such as capital equipment is used.” “Some firms, facing financial constraints (which could result from power outages), may not be able to satisfy their whole need for energy” (Cissokho & Seck, 2013)

Measures

A questionnaire was distributed to multiple businesses in Senegal in 2013, focusing on seven business areas. The sample businesses were expected to fill in information related to the businesses’ general information, production and cost issues, finance, electricity, and employment-related questions. A final sample containing information from 6000 companies was picked for further investigation.

Findings                                  

In an effort to get by during power outages, some businesses ended up doing better than they would have performed with reliable power supply. However, in terms of scale efficiency, companies faced difficulties catching up with the expected production levels. Further, businesses relying on alternative internal electricity production incurred higher costs associated with economies of scale.

Conclusion

Power outage duration motivated some firms to perform better rather than being a hindrance. Although such outages may have encouraged firms to improve performance in the short run, the survival of such firms in the long run was questioned. Further, long power outage duration had a significant negative impact on scale efficiency. Therefore, there is a need to address power outages to help firms save on the extra expenses diverted to alternative power generation.

Article Review 3

Reference Information

Boakye, N. A. B., Twenefour, F. B., & McArthur-Floyd, M. (2016). The impact of power outage “Dumsor” on the hotel industry: Evidence from Ghana. Journal of Energy Technologies and Policy, 6(8), 39-47.

Purpose of the Study

The purpose of the study was to examine at the effects of power disruptions on Ghana’s hotel industry. The study adopted different objectives to achieve the stated purpose, including investigating the nature of power supply in the Ghanaian hotel industry, exploring alternative power supply openings, and examining the impact of power outages on the Ghanaian hospitality industry and the cost-effectiveness of alternatives.

Sampling Comments

“Complementary power generated from thermal plants with the intent of augmenting electricity supply in Ghana has not provided an antidote to the inadequate and unreliable supplies of electricity.” “A power interruption lasting between 1 and 4 seconds can result in a loss of more than US$ 3 to 10 million of damage to their properties” (Boakye et al., 2016)

Measures

The study focused on a sample of 100 hospitality destinations drawn from 2-, 3-, 4-, and 5-star hotels. Subsequently, a structured self-administering questionnaire was issued to these facilities. The results obtained were used to perform an investigation based on pre-established variables that are core to performance in the hotel industry.

Findings

The study findings show that a significant number of employees were laid off as a result of power outages. Also, power outages disabled heat control devices in staff working areas, hence making it hard for the staff to attain their targets as they could not work well under high temperatures. Profits also significantly dwindled since hotels could not reach their production targets due to outages, not to mention the food products that went bad due to power outages. Most hotels reported that they rely on alternative power supplies such as solar, generators, and plants, indicating how power supply is unreliable in Ghana.

Conclusion

Power interruptions in Ghana are frequent, affecting the hotel industry, which heavily relies on power. A major loss has been registered as far as the hotels’ competitiveness is concerned. The hotel industry heavily relies on returning clients, but such clients may not return if they were dissatisfied on their first visit. The frequent power interruptions have also affected productivity in these hotels. Since the problem is long-term and no solution is in sight, most businesses have resolved not to calculate the losses altogether.

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Download a copy of the Sample Article Review (ATTACHED)
Using the exact Sample Article Review format, write a review on 3 articles relating to your final research topic (POWER OUTAGE/BLACKOUT IN A BUSINESS). Use the Library database or http://scholar.google.com to find the 3 peer-reviewed journal articles relating to your final research topic.

***articles should be related to POWER OUTAGE/BLACKOUT IN A BUSINESS***

Please note: The articles you select for this assignment must be peer-reviewed journal articles. (* Peer Reviewed Journal Articles contain a study conducted by the authors and are usually 6 to 15 or more pages in length, with headings matching the headings in the sample article review). If you are unsure about the articles you’ve selected, please get in touch with either the library representative or your instructor.
*Industry magazines, eZines, .coms, blog sites, and Wall Street Journal are not classified as peer-reviewed journal articles for this assignment.