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Does Exposure to a Traumatic Event Make Organizations Resilient?

Murad A Mithani1, Shanthi Gopalakrishnan2, Michael D Santoro3

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Organizational resilience after traumatic events is enhanced by a higher perception of threat, leading to increased collaboration and learning. Spatial proximity to the threat amplifies this effect, driving adaptation and recovery.

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Area of Science:

  • Organizational Studies
  • Sociology
  • Disaster Management

Background:

  • Limited research exists on organizational recovery from life-threatening events like terrorist attacks.
  • Existing research primarily focuses on economic or technological shocks.
  • Organizational resilience is key to understanding post-traumatic recovery.

Purpose of the Study:

  • To investigate how organizations recover from traumatic events.
  • To explore the role of threat perception in organizational resilience.
  • To examine the impact of spatial proximity on recovery strategies.

Main Methods:

  • Comparative analysis of US and non-US firms before and after the 9/11 attacks.
  • Quantitative assessment of inter-organizational alliances, slack resource deployment, and learning.
  • Focus on the influence of spatial proximity to the traumatic event.

Main Results:

  • Higher threat perception significantly increases inter-organizational collaboration and learning.
  • US firms, due to spatial proximity to 9/11, showed a greater increase in alliances than non-US firms.
  • Alliance preferences shifted towards local partners, emphasizing slack and learning.

Conclusions:

  • Organizational recovery from trauma is strongly influenced by threat perception.
  • Spatial proximity to a traumatic event enhances resilience by increasing threat perception.
  • Adaptation and recovery are fostered by proximity, not immunity, to threats.