A real options approach to growth opportunities and resilience aftermath of the COVID-19 pandemic

PurposeFacing the challenges posed by the pandemic of COVID-19, this paper aims to contribute to the resilience of businesses through the development of a real options approach (ROA) that provides alternatives and opportunities for a decision process under situations when future events and outcomes are unknown and not capable of being known from current information.Design/methodology/approachThis paper involves a stochastic modelling process in generating a set of absolute option values, using available data and scenarios from the COVID-19 pandemic event. The modelling and simulations using ROA suggest how strategic portfolios resolve the growing problem during the endemic to all but in the most isolated societies.FindingsThis study finds the emergent correlation between circuit breakers and lockdowns, which have brought about a "distorted gravity” effect (inverse growth of global businesses and trades). However, "time-to-build” real options (i.e. deferral, expand, switch and compound exchange) start to function in the adaptive-transformative capabilities for growth opportunities of both government and corporate sectors. Significantly, some sectors grow faster than others while the compound exchange remains primarily challenging. Clearly, the government and corporate sectors are entangled, inevitably, the decoherence allows for the former to change uncertainty in the latter;therefore, government sector options change option values in the corporate sector.Originality/valueThe ROA by empirically focusing on both government and corporate sectors demonstrates under conditions of uncertainty how options in decision-making generate opportunities that hitherto have not been recognised and exercised upon by research in the immediate context of the COVID-19 pandemic. Importantly, the ROA provides an insightful concatenation (capability–behaviour approach) that drives resilience.

Digital transformation of educational institutions accelerated by COVID-19: A digital dynamic capabilities approach

During the Coronavirus crisis (COVID-19) that started in 2019 and at the extensive quarantine regulations, educational institutions, companies, and individuals have reacted by shifting their teaching and learning activities to virtual spaces. Yet, although the use of online learning has increased, it has not been able to achieve the long-promised transformative effect. The COVID-19 crisis has the potential to boost online education overall or at least enable better preparation of the system for the next crisis. Ultimately, to make a digital transformation sustainable, appropriate skills are required. In this study, we adapt the dynamic capabilities foundations creating a theoretical approach to explain how educational institutions have responded to the changing environmental conditions during the COVID-19 pandemic. © 2023 the authors.

How environmental hostility, entrepreneurial orientation and dynamic capabilities are manifested to influence above-average export performance during the COVID-19 pandemic

PurposeThis study analyses how latent variables: environmental hostility, entrepreneurial orientation and dynamic capabilities are demonstrated in practice during the COVID-19 pandemic. Coming from mixed-method research, which is an explanatory sequential research design;this paper aims to provide only the qualitative, practical manifestations and validations of the variables previously tested and analysed quantitatively.Design/methodology/approachA case study approach was used whereby open-ended, semi-structured series of interviews was conducted to extract narratives from two owner–managers of medium-scale manufacturer-exporter agro-processing firms in the Philippines. Thematic analysis using deductive reasoning was used to analyse the collected narratives.FindingsThe analysis showed qualitative evidence of a possible intervention of entrepreneurial orientation and dynamic capabilities between the effects of the hostile environment brought about by the pandemic on the firms' export performance. In addition, organisational resilience was observed to possibly moderate the relationship between the firm's entrepreneurial orientation and dynamic capabilities. Resilience takes time (years) to develop;with an entrepreneurial behaviour, a continuous enhancement and acquisition of resources, capabilities, knowledge reflects a robust and adaptive organisation during adversity.Social implicationsThe role of education and research institutions was highlighted in the development of dynamic capabilities of firms. The entrepreneurial resilience, however, reflects the individual characteristic of the owner–managers that manifests in the firm's overall posture toward the overall goal of protecting the industry from its downfall.Originality/valueQualitative evidences composed of direct experiences from key informants served valuable and contextual (Philippine agro-processing industry) validations to the theoretical relationships of variables being analysed.

Saying yes to mess: disorganization as an antecedent to dynamic capabilities

Modern businesses constantly operate in an environment filled with unpredictability. Such unpredictability and heightened dynamism require rapid responses, mainly prompted by the realization that such irregular phenomena cannot be dealt with using conventionally structured and organized approaches alone. In line with this ongoing conversation fuelled notably by the COVID-19 pandemic and its associated digital acceleration, in this paper, we lay out the case for how "actively embracing disorganization” as a new work form can be a mechanism that facilitates the creation and enactment of important dynamic capabilities thus enhancing a firm's ability to cope with unpredictable environments. In doing so, we attempt to make a novel contribution outlining the relationship between disorganization and dynamic capabilities through propositions and an accompanying conceptual framework. In this article, we position disorganization as a form of organizational design capable of enabling the link between dynamic capabilities and performance.

The impact of dynamic capabilities on SME performance during COVID-19

Dynamic capabilities (DCs) are a growing field of research within the scope of theoretical structures based on resource and strategic management. Given the demonstrated impact of DCs on company performance, it is important to study the effects of DCs on small and medium sized enterprises (SMEs) within the context of the COVID-19 pandemic. Hence, this research evaluates the role of DCs during the pandemic and its impact on the performance levels of SMEs. Analysing the responses of 209 SMEs using a structural equations model, we report that DCs positively affect company performance both prior to and during the pandemic. However, we also verify that while prior to the pandemic companies placed greater emphasis on the search for new opportunities, following the onset of the pandemic the focus shifted to getting their products to the market. These results contribute to the literature on strategic management and the DC based approach during periods of turbulence and pandemics.

The Model of Organizational Performance Based on Employees' Dynamic Capabilities-Verification During Crisis Caused by Black Swan Event

The article concerns the potential influence of employees' dynamic capabilities on the performance of entire organization, which operates in crisis caused by Black Swan event. It is the expansion of job performance model based on employees' dynamic capabilities, proposing the possibility of translating the positive influence of those capabilities onto entire organization and underlining the importance of employees' dynamic capabilities during crisis within organization. Based on literature analysis, the shape of the amended model is proposed, in which employees' dynamic capabilities influence organizational performance through elements of the original model (person-job fit, work motivation, job satisfaction, work engagement and job performance), and additional ones: person-organization fit, person-supervisor fit. The proposed model is empirically verified based on the sample of 1160 organization operating in Poland, Italy and USA during an active wave of COVID-19 pandemic (which is an example of Black Swan event). The results obtained using path analysis confirmed that employees' dynamic capabilities indeed influence organizational performance of organizations operating in crisis caused by Black Swan event through elements proposed in the model.

Avoiding crisis-driven business failure through digital dynamic capabilities. B2B distribution firms during the COVID-19 and beyond

Previous research has proposed different determinants of the success and failure of technological innovation in industrial networks. However, following the recent COVID-19 pandemic crisis, distributors have been seeking to become more agile in identifying and transforming business processes to avoid failures. Although industrial practitioners have been broadly motivated to understand the effects of pandemics on business failure, the contingency factors that affect organizations in their responses to such sudden exogenous shocks remain unclear. Inspired by a burgeoning academic interest in viewing the COVID-19 pandemic as a digital accelerator, this paper examines how B2B distribution firms have been avoiding business failure by using their dynamic capabilities (DCs) in response to the sudden exogenous shocks caused by the pandemic. Based on data drawn from interviews conducted with a sample of B2B distribution firms, we argue that capitalizing on digital DCs—digital sensing (i.e., digital mindset crafting and digital scenario planning), digital seizing (i.e., engaging in strategic agility and balancing a digital portfolio), and digital transformation (i.e., navigating the innovation ecosystem, redesigning the internal structure, and improving digital maturity), —helps to prevent business failure during a pandemic.

How does social responsibility investment strategy contribute to hospitality firms' recovery from public health emergencies? The case of COVID-19 pandemic.

Using fuzzy-set qualitative comparative analysis, this paper explores which configurations of six dimensions of hospitality firms' corporate social responsibility (CSR) result in higher (or lower) levels of total factor productivity. We demonstrate that different categories of stakeholders and hospitality firms' dynamic capabilities complement each other under the framework of configurational theory. The result shows that: 1) The CSR dimensions of product quality, CSR communication, and environmental protection are critical to high levels of firm performance; 2) After the pandemic, hospitality firms should make investment in CSR communication and environmental protection a priority; 3) Hospitality firms' choice to invest in a specific combination of dimensions of CSR practice should depend on their overall level of corporate governance (high or low). This paper contributes to the strategic management and corporate governance literature by identifying the role of hospitality firms' governance on the linkage between CSR investment strategy and firm performance.

Has Digitalisation Mitigated the Impact of Covid-19 on the Manufacturing Sector's Performance?

The Covid-19 pandemic brought many businesses to a standstill as international travel restriction was imposed across countries in addition to a national lockdown. Firm performances were depressed due to reduced order and output. This study examines whether digitalization has mitigated the negative impact of the Covid-19 pandemic on Malaysia's manufacturing sector. Using sales as the performance yardstick of 24 industrial sectors from January to December 2020, our result shows that manufacturing sales performance was negatively related to the Covid-19 pandemic. However, the adverse impact of Covid-19 was mitigated with a higher level of digitalization. The mitigating role of digitalization remains robust in further analysis. This study has managed to quantify the mitigating effect of Covid-19 on manufacturing sectors. As a policy implication, the government should expedite the introduction of the 5G network, promote digital adoption across all sectors to ensure business continuity and provide an effective response mechanism in any pandemic or crisis.

Digital Supply Chain Capabilities: Mitigating Disruptions and Leveraging Competitive Advantage Under COVID-19

Researchers and practitioners have highlighted the importance of supply chain analytic capabilities in managing risk while maintaining a competitive advantage (COA). However, the importance of digital supply chain capabilities (DSCCs) in improving resilience, agility, and robustness practices to foster the implementation of sustainable supply chain practices and any resulting COA remains unclear. Based on the dynamic capabilities view, we propose a research model for achieving a COA in contexts of uncertainty, such as the COVID-19 pandemic. A survey of Indian small and medium-sized enterprises in the original equipment manufacturing industry, comprising 310 respondents, was administered. Using structural equation modeling, we examine the proposed model. The findings show a significant positive effect of DSCCs on supply chain resilience and agile practices. The findings also indicate that supply chain resilience, robustness, and agile practices positively affect sustainable supply chain practices. Moreover, sustainable supply chain practices positively influence COA. Furthermore, the study reveals that the effect of DSCCs on sustainable supply chain practices is mediated by supply chain resilience, robustness, and agile practices. Managers concerned with investment in sustainable supply chain practices can obtain a COA through the successful implementation of supply chain resilience, robustness, and agile practices.

Building capacities for oriented innovation: Argentina's response to COVID-19 from a gender perspective.

The pandemic tested the resilience of public systems, as governments faced the challenge of rapidly adapting their policies and practices. In this context, Argentina was recognized as one of the few countries that managed to mainstream a gender perspective to reach the most vulnerable populations, showing adaptive capacities and strategic orientation. This article seeks to document, systematize, and rethink the strategies deployed by the Argentine government in terms of mission-oriented innovation policies. The objective is to understand which capabilities are key to address complex social issues in the Global South and how they can be nurtured. Through a theoretical framework that articulates the literature on "dynamic public sector capacities” and "state capacities” in Latin America and the application of a qualitative methodology (case study), we find that state capacities were strengthened by reconfiguring pre-existing resources based on a government project, collective leadership, and a series of institutional and political innovations in the context of the rise of regional feminisms. This experience, which has earned Argentina global recognition, offers important lessons for addressing social challenges through innovation policies, the institutionalization of popular movement demands, and collaborations for resilient systems. (English) [ FROM AUTHOR] La pandemia puso a prueba la resiliencia de los sistemas públicos, pues los Gobiernos enfrentaron el desafío de adaptar rápidamente sus políticas y prácticas. En ese contexto, Argentina fue reconocida como uno de los pocos países que logró transversalizar la perspectiva de género para alcanzar a las poblaciones más vulnerables, mostrando capacidades de adaptación y orientación estratégica. En este artículo se busca captar, sistematizar y repensar –en el contexto de las políticas de innovación orientadas por misiones– las estrategias desplegadas por el Gobierno argentino. El objetivo es comprender qué capacidades resultan claves para el abordaje de problemáticas sociales complejas en el Sur Global y cómo estas pueden nutrirse. A través de un marco teórico que articula la literatura sobre "capacidades dinámicas del sector público” y "capacidades estatales” en América Latina, y la aplicación de una metodología cualitativa (estudio de caso), encontramos que las capacidades estatales se fortalecieron reconfigurando recursos preexistentes a partir de un proyecto de gobierno, liderazgos colectivos, y una serie de innovaciones institucionales y políticas en el contexto del auge de los feminismos regionales. Esta experiencia, que le ha valido a Argentina el reconocimiento mundial, ofrece importantes lecciones para abordar los retos sociales mediante políticas de innovación, la institucionalización de las demandas de los movimientos populares y las colaboraciones para lograr sistemas resilientes. (Spanish) [ FROM AUTHOR] Copyright of Íconos. Revista de Ciencias Sociales is the property of FLACSO Ecuador (Facultad Latinoamericana de Ciencias Sociales) and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full . (Copyright applies to all s.)

How recreational farm operators use dynamic capabilities to respond to COVID-19 pandemic

The outbreak of the COVID-19 Pandemic has devastated economic activities around the world. The tourism industry is facing severe challenges, such as reduced tourist flow and the lack of tourist consumption at desti-nations. Recreational farms are one of the business types of agricultural tourism in Taiwan and have the char-acteristics of small and medium-sized agriculture businesses. The operator is facing an uncertain environment in the epidemic market, and the operator's dynamic capability is considered to be effective in coping with the current environment. In this study, 20 selected recreational farms were interviewed to explore how operators use dynamic capabilities to make responses. The results show that recreational farms have the three elements of dynamic capabilities: sense, seize, and transform, to change farm marketing channels and develop new products or services to respond to the new market. Recreational farm operators adopted resource optimization, computerization, and cost control strategies to respond to the market. Management implications: A successful implementation of recreational farm offers requires-the reallocation of resources, -the planning of new products and services, and-the improvement of service processes to create new business and to address additional target groups.The COVID-19 pandemic forces a systematic positioning or repositioning of the business.

VUCA environments before the recession caused by Covid-19: a systematic literature review

The acronym VUCA as a description of a Volatile, Uncertain, Complex and Ambiguous environment, has been gaining increasing relevance as a noun to describe a reality that is complex and turbulent. Besides the healthcare challenges, the COVID-19 pandemic has also caused drastic changes in the management world. Through a systematic literature review of 137 articles published before the beginning of the COVID-19 pandemic (between 2009 and March 2020), we develop a conceptual framework that integrates complementary branches of theoretical and empirical research, with the VUCA environment as the central unit of analysis. Our objectives are to unravel how the main theories in this field address essential aspects of management and future study trends, we also propose a conceptualisation of VUCA as an essential element of the current environment and its relationship with the different disciplines in the business world.

The most relevant intangible assets in generating value in creative economy companies

Objective: This work seeks to identify which variables best explain the generation of value in creative economy companies that have high investment in intangible assets. The study focused on the creative economy sector of Porto Digital in the city of Recife, Pernambuco, Brazil. Methodology: The methodology used was exploratory research. For the examination of the variables, the multivariate analysis was used with the application of exploratory factor analysis, and for confirmation, the Spearman correlation model. For data collection, a semi-structured questionnaire prepared in Google Forms was sent to the companies in the second half of July 2021. The responses were validated using Cronbach's Alpha, and the suitability for using factor analysis was measured using the KMO and Bartlett tests. All results were found and demonstrated using the IBM SPSS Statistics 26 software. Results: The variables highlighted by the results were grouped into three groups and presented in an accounting statement model using the Resource-Based Theory definitions. Finally, the CEO of two of the most prominent Creative Economy companies in Pernambuco gave his opinion on these variables. These comments were placed in the financial statement explanatory note format. The results showed that 13 variables were classified into structural, relational, and human capital. Study contributions: Creative economy companies essentially work using the ability to manage all their intangible resources. This article is the first to provide empirical evidence on the perceptions of managers of creative economy companies in Porto Digital do Recife about the importance and contributions of intangible assets to generate value in their businesses, as well as assess the organizational resilience of these companies in the context of the covid-19 pandemic.

Risk, Reward, and Resilience Framework: Integrative Policy Making in a Complex World

In the last few years, many states around the world have faced a series of shocks to their economies-from the seizing up of global supply chains to the weaponization of trade and finance-that have catapulted concerns about how to strike a balance between risk, reward, and resilience into the center of public discussions and policy-making. This Article provides a new Risk, Reward, and Resilience Framework, which synthesizes and integrates insights from diverse disciplines and domains. I set out the drivers of each element, how they are connected, and resulting policy choices. To illustrate its practical application, I apply Risk, Reward, and Resilience Framework to two case studies involving economic interdependence: the COVID-19 supply chain shock and China's economic coercion of Australia. In doing so, I provide policymakers with a new mental model for thinking about and working through complex policy challenges.

The role of traditional knowledge-based dynamic capabilities to improve the sustainable performance of weaving craft in Indonesia

PurposeIndonesian woven craft small- and medium-sized enterprises (SMEs) have encountered several difficulties in sustaining their success in the digital era. The performance of the business is contingent upon its ability to gain competitive advantage through traditional knowledge capabilities. The purpose of this research is to study the role of traditional knowledge management processes towards competitive advantage and sustainable performance for woven craft SMEs.Design/methodology/approachThis research used a quantitative approach with a survey strategy. Confirmatory research was conducted to test five hypotheses to determine the causal relationship of four variables, namely, traditional knowledge management, dynamic capabilities, competitive advantage and sustainable performance. This study used a purposive sampling strategy and gathered data from 385 respondents. The sample was selected based on predetermined criteria, including operation for more than five years and entrepreneurial activity using traditional knowledge as a resource to manage product innovation. The analytical technique used was structural equation modelling with the support of the AMOS programme.FindingsThe findings indicated that traditional knowledge management processes directly affect dynamic capabilities and sustainable performance. This study also found traditional knowledge management processes play a significant role in enhancing competitive advantage mediated by dynamic capabilities. However, traditional knowledge management processes have no significant effect on competitive advantage. Hence, there is a significant effect contributed by the relationship between traditional knowledge management processes and sustainable performance. Therefore, in the context of craft woven SMEs, the higher the traditional knowledge-based capabilities, the higher their sustainable performance.Originality/valueThe novelty shows a direct relationship between traditional knowledge management processes and sustainable performance. This study also found traditional knowledge management processes meditated by dynamic capabilities have a relationship with competitive advantage. Traditional knowledge management processes will trigger an increase in dynamic capability which is a source of business development;those conditions will increase sustainable performance. Traditional knowledge-based capability is an antecedent of sustainable performance. The benefits of this research can be used as scientific literature regarding the link between traditional knowledge management processes, competitive advantage and sustainable performance. The results of this study can also be used as a basis for empowering traditional woven craft SMEs in Indonesia.

Realizing supply chain agility under time pressure: Ad hoc supply chains during the COVID‐19 pandemic

When the COVID‐19 pandemic began in 2020, the medical product industry faced an unusual demand shock for personal protective equipment (PPE), including face masks, face shields, disinfectants, and gowns. Companies from various industries responded to the urgent need for these potentially life‐saving products by adopting ad hoc supply chains in an exceptionally short time: They found new suppliers, developed the products, ramped‐up production, and distributed to new customers within weeks or even days. We define these supply chains as ad hoc supply chains that are built for a specific need, an immediate need, and a time‐limited need. By leveraging a unique sampling, we examined how companies realize supply chain agility when building ad hoc supply chains. We develop an emergent theoretical model that proposes dynamic capabilities to enable companies building ad hoc supply chains in response to a specific need, moderated by an entrepreneurial orientation allowing firms to leverage dynamic capabilities at short notice and a temporary orientation that increases a company's focus on exploiting the short‐term opportunity of ad hoc supply chains.

Exploring Managers' Skills Affecting Dynamic-Innovative Capabilities and Performance in New Normal Era

The human resources department, as a dynamic mechanism in the hotel business, is a supporter and a manager who manages the corporation to grow by planning, supervising, and assuring the expected performance leads to desirable outcomes. The situation of spread of the COVID-19 virus has resulted in businesses and labor departments having to adapt to survive by upgrading existing knowledge and adding new skills. Therefore, this research aims to describe components and models of necessary skills development for performance affecting dynamic capabilities and performance in a new normal era for human resources managers of five-star hotels in Phuket Province, which are crucial components in an increased corporation's sustainability and performance in terms of personnel efficiency, assets, funds, and information. This research is quantitative, and research data was collected from a total of 384 human resource managers of five-star hotels. There was a mutual discussion of factor analysis and structural equation results with three human resources managers who have been successful for not less than seven years in their work. The components consisted of systematic consideration through the following causes: necessary skills;professional skills, work skills, and emotional skills, mediator variables;dynamic capabilities, and organizational performance. This research also discussed five guidelines for developing the necessary skills for performance. As various factors have affected the performance in the new normal era, the human resources executives of five-star hotels in Phuket province should apply them and consider them together with their business plans for setting the strategic plan of organizational management, management, administrative, and human resources development. © Authors retain all copyrights.

Building Dynamic Capabilities and Organizational Resilience in Tourism Firms During COVID-19: A Staged Approach

Using dynamic capabilities (DCs) and the disaster/crisis management cycle (DMC) as the theoretical lens, this study explores how different types of DCs build and sustain organizational resilience of tourism firms during COVID-19. Taking a processual view, the study advances theorization of the relationship between DCs and organizational resilience in tourism studies. A qualitative study of 30 owners and senior managers of tourism and hospitality firms in Bangladesh reveals that threats and opportunities presented by the COVID-19 pandemic activated 10 different types of DCs (replicating, integrating, reconfiguring, creating, developing, assimilating, renewing, adaptive, innovative, and regenerative) across the pre, response (short-term) and future recovery intentions (long-term) stages. DCs activated different resilience facets (networks and relationships, leadership and culture, and change ready), highlighting the criticality of achieving planned and adaptive resilience for tourism firms during COVID-19. Response and recovery implications for tourism firms during disruptive events are suggested. [ABSTRACT FROM AUTHOR] Copyright of Journal of Travel Research is the property of Sage Publications Inc. and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Transforming resilience in the context of a pandemic: results from a cross-industry case study exploring supply chain viability

Lately, there has been increased interest among researchers in studying the resilience of manufacturing supply chains. However, the Covid-19 pandemic has caused severe disruptions in global supply chains, which have led to calls for greater resilience in these supply chains. This study provides insights into the impact of the Covid-19 pandemic on supply chain resilience by conducting a multiple case study in three intertwined industries based on the dynamic capability view and the relational capability view as a theoretical underpinning. Data were collected during the pandemic in a two-stage interview process with 18 supply chain and production experts directly involved in crisis management. Internal and external documents supplemented the interviews. The results revealed seven higher-level capability groups for building resilience in intertwined supply chains during a pandemic outbreak: agility, collaboration, digital preparedness, flexible redundancy, human resource management, contingency planning, and transparency and visibility. Each capability group is supported by associated capabilities extracted from the data analysis. The findings obtained based on the results of the multiple case study are discussed, and implications for management and future research directions are presented.