Resilience: Lessons from banks that have braved the economic crisis—And from those that have not

Gideon M. Markman and Markus Venzin

International Business Review, 2014, vol. 23, issue 6, 1096-1107

Abstract: Resilience – a firm's ability to adapt, endure, quickly bounce back, and then thrive despite a catastrophic event – addresses diverse managerial constructs including performance (Carmeli & Markman, 2011). Our exploratory study expands this line of research by making two contributions: first, we develop and test a new revelatory measure for resilience – VOLARE – combining financial performance measures with volatility data. Then, applying this new measure to the financial industry, from 2002 to 2011, we identify highly resilient international financial services firms (IFSFs; e.g., banks) and compare them with less resilient IFSFs. Second, we assess three factors – bank size, home-market solidity, and product and market complexity – that the literature has traditionally shown to be highly predictive of banks’ performance. Consistent with our expectations, the results corroborate that VOLARE is complementary to, but distinct from, traditional financial measures of firm performance. We explain these deviations from traditional studies and suggest further research topics.

Keywords: Bank size; Financial services; Home-market solidity; Product/market complexity; Resilience; Sustained superior performance; VOLARE (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (28)

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DOI: 10.1016/j.ibusrev.2014.06.013

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