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Different response paths to organizational resilience.

Dean A Shepherd1, Trenton A Williams2

  • 1University of Notre Dame, Notre Dame, IN USA.

Small Business Economics
|April 16, 2024
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Organizations navigate environmental shocks by adapting their strategies. This study reveals diverse resilience pathways, emphasizing managerial interpretation and response during crises like COVID-19 for organizational survival and growth.

Keywords:
AdaptationAdversityDecision-makingEntrepreneurshipOrganizational resilience

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Area of Science:

  • Organizational Studies
  • Crisis Management
  • Business Resilience

Background:

  • Environmental shocks present critical challenges to organizations, demanding adaptive managerial responses.
  • Understanding how organizations interpret and act within post-shock environments is crucial for survival.
  • Existing research often overlooks the dynamic response processes during adversity.

Purpose of the Study:

  • To analyze organizational responses to the COVID-19 crisis and model paths to resilience.
  • To differentiate between resilient and non-resilient organizations by identifying distinct response trajectories.
  • To explain organizational growth during adversity, not just post-adversity.

Main Methods:

  • Grounded theorizing applied to data from organizations' responses to the COVID-19 crisis.
  • Analysis of managerial interpretation and strategic decision-making during an environmental shock.
  • Comparative study of organizational resilience pathways.

Main Results:

  • Identified three primary organizational response paths to resilience.
  • Demonstrated how organizations achieve growth during, not only after, adverse events.
  • Highlighted the significance of managerial interpretation and adaptive strategies over resource endowments in determining resilience.

Conclusions:

  • Organizational resilience is not monolithic; diverse response paths exist.
  • Managerial interpretation and adaptive actions during crises are key drivers of resilience and growth.
  • This research provides a nuanced model for understanding how organizations navigate and thrive amidst environmental shocks.