Resilience through Strategy: Investment Decisions and Dynamic Capabilities in Capital-Intensive Sectors

Yury Pukha ()
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Yury Pukha: ESCP BUSINESS SCHOOL & INTELLIGENT EDGE CONSULTING, USA

No 14516468, Proceedings of Economics and Finance Conferences from International Institute of Social and Economic Sciences

Abstract: The research investigates investment policy as a unique resource and business model innovation as a dynamic capability, considering these two elements as key factors contributing to resilience in the aftermath of an economic shock. We conduct a comprehensive statistical analysis using panel regression and DiD methods and spanning global telecommunications operators from 2012 to 2022, supplemented by case studies of operators in three countries. Authors propose theoretical framework of resilience capabilities for capital intensive sector that extends Resource Based View and Dynamic Capability theories. Findings confirm that firms that prioritize leading investments in core infrastructure outperform competitors. For capital heavy firms? innovation in business model proves to be a powerful factor of resilience but secondary to investment as unique resource. The market advantage of firms that built both capabilities extends during crises, however, making quick adjustments during crisis in investment or business model innovation strategy does not lead to significant gains in market position.

Keywords: Digital Resilience (DR); Investment strategy; Dynamic Capability (DC); Business Model Innovation (BMI); Crisis Management (search for similar items in EconPapers)
Pages: 13 pages
Date: 2024-10
New Economics Papers: this item is included in nep-cse and nep-sbm
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Published in Proceedings of the Proceedings of the International Conference on Economics, Finance & Business, Prague, Oct 2024, pages 105-117

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Persistent link: https://EconPapers.repec.org/RePEc:sek:iefpro:14516468

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