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PurposeThe purpose of this paper is to construct an integrated theoretical framework of firm resilience, and examine the relationship between resource reconfiguration, firm resilience, disruption impact, profit growth, innovation and environmental uncertainty in the context of COVID-19.Design/methodology/approachA survey was distributed to 220 companies and a total of 207 respondents returned the survey. chief executive officer (CEO) and chief financial officer (CFO) of each company participants in the survey. The hypotheses are tested using structural equation modeling (SEM) technique.FindingsThe results showed that firm resilience can be stimulated through the reconstruction of existing resources, and environmental uncertainty played a moderating role in this process;in turn, the improvement of firm resilience enabled companies to reduce the impact of disruptions, achieve profit growth and promote innovation.Practical implicationsThis study provides practical implications for how business management shapes firm resilience and promotes organization recovery and development.Originality/valueThis study expands the literature of firm resilience by providing an integrated theoretical framework of firm resilience. Firstly, based on the perspective of dynamic capabilities, this study reveals that resource reconfiguration plays a key role in shaping firm resilience. Secondly, this study enriches the boundary research on firm resilience by incorporating environmental uncertainty into the research framework. Thirdly, this study validates the impact of firm resilience on disruption impact, profit growth and innovation of companies, providing sufficient empirical evidence for the outcomes of firm resilience.
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The financial implications of the worldwide COVID-19 pandemic and the effective mitigation of the negative effects are the subject of an ongoing debate. We aim to empirically substantiate this debate. Based on a sample of 4,032 publicly traded U.S. and Chinese firms, we conduct an event study and find that the COVID-19 pandemic is associated with a substantial decrease in shareholder value, significantly varying between U.S. and Chinese firms and across industries. We further identify structure- and supply chain-related firm factors that mitigate the negative impact. Specifically, we find that smaller firms experience a less negative impact on shareholder value, challenging established findings. Our results also suggest that a lower dependence on physical assets, a shorter trade cycle, and a higher degree of vertical integration attenuate the negative impact on shareholder value. Our findings provide important insights for managers and policymakers. We recommend managers to reduce the dependency on business models that strongly rely on physical assets, to streamline trade cycles, and to reduce supply chain complexity. From a policy perspective, we emphasise the importance of more industry-specific granularity of public support measures.
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Purpose>This study aims to study the impact of organizational ambidexterity capability and resource availability on firm resilience along with perceived environmental uncertainty playing a moderating role. This study also intends to investigate the interplaying relationship between exploration capability and exploitation capability as components of organizational ambidexterity with resource availability.Design/methodology/approach>Quantitative data was collected through self-administered surveys targeting 202 firms in Egypt. SEM (AMOS-SPSS) was used to test the proposed hypotheses.Findings>The results indicated that both organizational ambidexterity capability and resource availability impact firm resilience. Moreover, the relationship between the enablers was found to be significant, where resource availability has a positive impact on the firm's exploitation capability, the firm's exploitation capability has a positive impact on its exploration capability and finally, the firm's exploration capability has a positive impact on resource availability. However, the moderating role of perceived environmental uncertainty was found to be insignificant.Research limitations/implications>Nonprobability convenience sampling technique, cross-sectional design and the relatively small sample size may hinder the ability to generalize this study.Practical implications>This study identifies the importance of exploration (innovation) and exploitation (efficiency) capabilities for managers to build responsive organizations.Originality/value>This study contributes to the understanding of firm resilience in times of uncertainties, where empirical research has not been enough. In addition, this study contributes to the identification of possible antecedents of firm resilience, highlighting the importance of certain strategic features including organizational ambidexterity capability and resource availability. This study also investigates the relationship between exploitation capabilities, exploration capabilities and resource availability, which was not empirically tested in the literature.
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We investigate the impact of non-critical business and telework propensity on stock prices during the COVID-19 pandemic using panel data comprising 15,238 firms across 46 countries. After eight months of the COVID-19 outbreak, we find that firms operating in non-critical industrial groups have stock prices 6.52% lower than firms in the same subsector that operate in essential industrial groups. We also examine corporate characteristics that exacerbated or mitigated this effect. We find that firms in non-critical industrial groups with high leverage, high human resource management inefficiency, and low intangible intensity before the pandemic suffered even more. For non-critical firms, we find that a one-standard-deviation increase in the subsector’s telework propensity results in a 10.20% increase in the firm’s stock price relative to firms in the same sector. Our research provides valuable empirical evidence for policymakers to understand the trade-off between containing the spread of the virus and restricting non-essential businesses, monitoring firms with specific corporate characteristics, and providing extraordinary support to those with a low propensity to telework during pandemics.
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The outbreak of the COVID-19 pandemic has significantly augmented the complexity of information, adding to the challenges that firms face in effectively processing and grasping accurate information. As a result, the production uncertainty of firms has been seriously intensified during the pandemic, disrupting the normal operation of firms and their supply chains. Digital technologies serve as salient tools that help firms to process and analyse information, consequently enhancing firm resilience in the face of supply chain disruptions. This study aims to examine how digital technologies affect firm resilience in the context of COVID-19 through the lens of information processing theory and a large-scale survey conducted among Chinese manufacturers. Specifically, our study evaluates the mediating effect of supply chain integration (internal integration, customer integration and supplier integration) and the moderating effect of information complexity. The results show that supply chain integration plays a mediating role in the effect of digital technologies on firm resilience, and the mediation effect is particularly significant for customer integration. Furthermore, digital technologies have a stronger impact on firm resilience when information complexity is high. The findings advance our understanding and recognition of the resilience implications of digital technologies and provide important managerial implications for improving firm resilience in the context of COVID-19.
ABSTRACT
Purpose This study aims to study the impact of organizational ambidexterity capability and resource availability on firm resilience along with perceived environmental uncertainty playing a moderating role. This study also intends to investigate the interplaying relationship between exploration capability and exploitation capability as components of organizational ambidexterity with resource availability. Design/methodology/approach Quantitative data was collected through self-administered surveys targeting 202 firms in Egypt. SEM (AMOS-SPSS) was used to test the proposed hypotheses. Findings The results indicated that both organizational ambidexterity capability and resource availability impact firm resilience. Moreover, the relationship between the enablers was found to be significant, where resource availability has a positive impact on the firm's exploitation capability, the firm's exploitation capability has a positive impact on its exploration capability and finally, the firm's exploration capability has a positive impact on resource availability. However, the moderating role of perceived environmental uncertainty was found to be insignificant. Research limitations/implications Nonprobability convenience sampling technique, cross-sectional design and the relatively small sample size may hinder the ability to generalize this study. Practical implications This study identifies the importance of exploration (innovation) and exploitation (efficiency) capabilities for managers to build responsive organizations. Originality/value This study contributes to the understanding of firm resilience in times of uncertainties, where empirical research has not been enough. In addition, this study contributes to the identification of possible antecedents of firm resilience, highlighting the importance of certain strategic features including organizational ambidexterity capability and resource availability. This study also investigates the relationship between exploitation capabilities, exploration capabilities and resource availability, which was not empirically tested in the literature.
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Purpose: This paper aims to identify firm and entrepreneurial team characteristics that may contribute to resilience in the creative industries (CI) under adverse economic conditions. Design/methodology/approach: It provides case study evidence based on 19 in-depth interviews with small and young creative enterprises in Greece in 2014 that is at the peak of the Greek economic crisis. New information was collected from two follow-up waves conducted in 2017 and during the recent coronavirus disease 2019 (COVID-19) pandemic crisis. Findings: The results suggest that highly internationalized entrepreneurial teams with extensive working and studying experience abroad, which also combine creative expertise with managerial and marketing expertise, are key resilience drivers during economic downturns. Moreover, being export-oriented, serving a diverse customer base and investing in digital technologies seem to allow CI firms to effectively adapt to challenging conditions. Originality/value: This study adds to the firm-level research on the resilience drivers of small and young enterprises in the CI context. It proposes and empirically tests a conceptual framework to advance the limited knowledge on entrepreneurship and resilience patterns in the CI during crisis periods, emphasizing specific entrepreneurial team and firm characteristics. © 2022, Emerald Publishing Limited.