Internationalization and Organizational Resilience to COVID-19 Crisis: The Moderating Effect of Digitalization

Yueqi Wang, Shouming Chen and Yuanyuan Hu

SAGE Open, 2024, vol. 14, issue 1, 21582440241229561

Abstract: Organizational resilience is a company’s ability to quickly recover and adapt when it encounters sudden and unexpected challenges. Our study looks at how a company’s level of international involvement before such challenges can influence its resilience, particularly when faced with the global disruptions caused by the COVID-19 pandemic. We also examine whether a company’s prior investment in digital technologies can help soften any negative impacts. From January 20 to June 10, 2020, we analyzed data from 2,363 Chinese companies that are traded on stock exchanges. We assessed their organizational resilience based on how their stock prices fluctuated and how quickly they returned to their pre-shock performance levels. Our findings indicate that companies with more international activities before the pandemic were generally slower to recover. However, companies with advanced digital capabilities before the pandemic demonstrated greater resilience, overcoming the negative repercussions more effectively. This research contributes new insights to the understanding of how international business activities affect a company’s ability to withstand and bounce back from global crises. Additionally, it underscores the importance of digitalization in enhancing organizational resilience.

Keywords: internationalization; organizational resilience; digitalization; COVID-19 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:sae:sagope:v:14:y:2024:i:1:p:21582440241229561

DOI: 10.1177/21582440241229561

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