2.2.

Theoretical Framework

2.2.1 General Theory: Performance Theory

The Performance Theory, which is a theoretical relationship between various

performance dimensions and organizational performance, underpins this research. The

primary emphasis is on Situational Performance, which states that variables in an

individual's environment stimulate, encourage, or impede performance. The researchers

will look at the consequences of lockdown policies and the pandemic, which have a

significant impact on the activity and climate of online business owners in Manila,

Philippines, in this report. According to Sonnentag and Frese (2005), situational

constraints include a shortage of required details, issues with materials and equipment,

and stressors in the workplace.

Sonnentag and Frese (2020) also claim that an indirect impact could be increased

regulatory capacity. Additional regulatory capacity is needed to comply with constraints

in order to complete a mission. According to the theory, when an individual requires and

employs additional regulation capacity that exceeds a human's capability, a

consequence can occur that reduces efficiency. The situation has had an effect on their

success both directly and indirectly, and it is a continuing chain reaction that could also

have an impact on the lives and loved ones of the company owners.

However, according to the theory, stressors may also have a positive impact on people.

When people's mindsets and resilience are concentrated on, they are more important
than the stressor itself. The resilient train of thought will assist business owners in

having a better mind about what to do with their company in the midst of the pandemic.

However, not everyone is capable of this, and therefore this hypothesis is important to

the study since it states the causes and potential explanations that impact the business

owner's success both positively and negatively.

2.2.2 Specific Theory: Systems Theory

This research is constructed on the theoretical foundations of Bertalanffy's Systems

Theory Application in Management (1940). According to this theory, everything is

interconnected and interdependent. According to Heylighen and Joslyn, this principle is

not only applicable or relevant to companies. Systems Theory is a multidisciplinary

examination of the abstract organization of phenomena, regardless of their form,

material, shape, or spatial or temporal scale. It investigates both the ideas that are

shared by all dynamic entities and the models that can describe them (usually

mathematical).

There are two fundamental concepts of Systems Theory in management. One is labeled

Close, while the other is labeled Open. The notion of Open was used in this report.

When the machine is influenced by the environment, it is said to be open. Concerning

the report, the researchers are attempting to determine the impact of COVID-19-caused

lockdown policies on micro-businesses. The Systems Theory of Management attempts

to clarify how business organizations are influenced by their environments. It

investigates how each approach works as well as how it relates to the current and

historical market setting.

Due to this, the listed theory is critical to the study because it incorporates one of the

most commonly used management approaches—the systematic method. The

researchers would have a better understanding of how most micro-business owners

approach their business with the aid of this theory, as well as how online micro-

businesses are influenced by external factors.

2.3. Conceptual Framework

The Input-Process-Output (IPO) Model will be used by the researchers. The

Input, as shown below, consists of the following: Independent Variables, Dependent

Variables, Control Variables, the Types of Micro-businesses, the Lockdown Policy

introduced during business operations, the Systems of the business place, and the

factors that decide individual output depending on the business environment During the

procedure, the researchers will use a survey questionnaire with a Likert scale, interview

randomly selected respondents, and collect and analyze data. Finally, the Output

demonstrates that the researchers plan to: identify the behaviors and attitudes of

microbusiness owners during the implementation of the COVID-19 Lockdown Policies,

uncover the obstacles or disadvantages that micro-business owners faced during the

pandemic, propose solutions to real problems experienced by micro-entrepreneurs, and

conclude findings received by the researchers.

The figure also depicts how the research will proceed. This analysis will begin with

input. This is the section where the researchers will go through the definitions of words

and the context. The scope will begin with an understanding of the current studies on

the independent variables, online microbusinesses, and owners. After all, the

researchers developed the subject to assist these business owners in communicating

their concerns to the public regarding their business circumstances during a crisis. The

dependent variables would then be more focused on the study's context. To be more

precise in their considerations, the researchers should address the various forms of

online microbusinesses. Besides that, the lockout policies under dependent variables

will be addressed in order to comprehend the reasons for company shutdowns or

temporary closures. With this experience, the researcher will be able to better

understand how each variable is linked to one another and produce a successful

solution to the analysis.

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