Abstract
For healthcare manufacturing firms, creating a crisis-prepared product and service portfolio and operational processes is essential for their long-term prosperity. In this paper, we examine how healthcare manufacturing firms cope with the operational disruptions and opportunities associated with the COVID-19 pandemic. We highlight the central role of organizational resilience and examine whether servitization and digitalization can improve the organizational resilience of healthcare manufacturing firms. On the basis of the organizational information processing theory, we suggest that servitization and digitalization can improve the stability and flexibility of operations, which make healthcare manufacturing firms more resilient to the COVID-19 pandemic. The hypotheses were tested using survey data from 163 manufacturing firms located in China. The results indicate that both servitization and digitalization improve the organizational resilience of healthcare manufacturing firms, leading to higher firm growth during the COVID-19 pandemic. Moreover, organizational resilience mediates the impacts of servitization and digitalization on firm growth. Environmental dynamism strengthens the relationship between digitalization and organizational resilience. This study offers new insights for healthcare manufacturing firms to prepare for crisis events and achieve sustainable development in a highly competitive environment.
Highlights
The outbreak of COVID-19 has caused widespread disruptions in global economic activities
According to organizational information processing theory (OIPT), we suggest that servitization and digitalization improved the organizational resilience of healthcare manufacturing firms, leading to higher firm growth during the COVID-19 pandemic
According to a survey of 163 healthcare manufacturing firms conducted during the COVID-19 pandemic, we found that servitization and digitalization improve organizational resilience, which further improves firm growth
Summary
The outbreak of COVID-19 has caused widespread disruptions in global economic activities. Due to disruptions for upstream suppliers and a decrease in customer demand caused by lockdowns, many healthcare manufacturing firms have had to cease production, and some have even been bankrupted during the outbreak [1,2]. Some firms have identified opportunities arising from this global health crisis and have improved their competitive advantage. Dexcom, a leading blood sugar monitor manufacturer, doubled its market value during 2020 [3]. In view of the differing outcomes for firms that face the same crisis, mitigating the negative impact of the COVID-19 outbreak and identifying opportunities from this crisis to achieve sustainable development have become core issues for healthcare manufacturing firms
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