Organizational resilience in times of crises - An empirical investigation of particular antecedents and effects
Abstract
Global economic crises can have a profound impact on businesses across various sectors, often leaving them struggling or even on the brink of insolvency. In such situations, organizational resilience is often considered a means to ensure competitive advantage. However, although the concept has gained popularity in recent years, empirical research on both antecedents and effects of organizational resilience is still scarce. Thus, we first examine potential management accounting determinants of organizational resilience as risk management or corporate planning. A survey conducted in January and February 2021 led to a dataset of 129 observations. We find that a risk management orientation is positively associated with both the adaptive-capability and the planning factor of organizational resilience. With regard to corporate planning, we find that the importance of the planning function of budgeting and capabilities for scenario planning are positively associated with the adaptive-capability factor of organizational resilience. Second, we investigate the effects of organizational resilience and find that adaptive capability increases a company’s competitive advantage in times of crisis. Our findings inform practitioners about the role of future-oriented management accounting practices such as risk management and corporate planning in increasing organizational resilience and, consequently, the positive effects of organizational resilience.