Determinants of business resilience: Investigating the roles of business agility, digitalization, and environmental hostility during the COVID-19 pandemic

Jamal Maalouf, Lynn Chahine (), Amine Abi Aad and Kevin Sevag Kertechian
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Jamal Maalouf: American University of Sharjah
Lynn Chahine: TSM - Toulouse School of Management - UT Capitole - Université Toulouse Capitole - Comue de Toulouse - Communauté d'universités et établissements de Toulouse
Amine Abi Aad: American University of Beirut, Lebanon
Kevin Sevag Kertechian: ESSCA - ESSCA – École supérieure des sciences commerciales d'Angers = ESSCA Business School

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Abstract: Dynamic capabilities research has demonstrated that businesses must adapt to changes in order to survive. The COVID-19 pandemic has put firm resilience to the test. The present study uses the dynamic-capabilities theoretical framework to shed light on the determinants of business resilience. Results from a sample of 243 full-time managers and business owners demonstrate that more agile businesses are more likely to be resilient. In addition, environmental hostility positively moderates the relationship between agility and resilience, as it was stronger with a high environmental hostility and weaker with a low environmental hostility. Digitalization also showed a positive relationship with resilience. Likewise, evidence does not support the hypothesis that digitalization moderates the positive relationship between agility and resilience, i.e., that as engagement increases, the relationship becomes stronger, possibly due to the burnout effect of digitalization. Finally, implications and future research opportunities are presented.

Keywords: Sustainability; COVID-19; Environmental hostility; Resilience; Agility (search for similar items in EconPapers)
Date: 2024-09-07
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Published in Journal of International Entrepreneurship, 2024, 23 (1), pp.196-223. ⟨10.1007/s10843-024-00357-6⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-05408746

DOI: 10.1007/s10843-024-00357-6

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