Resilience Of Companies Research Articles

ESG performance and organizational resilience ——based on an “extreme heat event”

This study evaluated the organizational resilience of Chinese listed companies under extreme heat events based on the cumulative abnormal return of stocks during severe environmental disturbances. Based on institutional, stakeholder, and risk management theories, the extreme heat event in August 2022 was chosen as the research setting to evaluate the relationships between environmental, social, and governance (ESG) performances and organizational resilience. Results showed that ESG performances significantly improve company resilience in market short-term response. The significantly improved resilience effects were observed in non-state-owned enterprises and companies in low-carbon pilot cities. Further analysis revealed that companies with varying levels of ESG performances demonstrate significant differences in long-term profitability potential. This study has important implications for further research on the effect of ESG performance on company resilience and provides a basis for enhancing company stability and flexibility during frequent extreme weather events.

Edge of Enterprise Architecture in Addressing Cyber Security Threats and Business Risks

Enterprise Architecture plays a critical role in reducing business risks holistically and ensuring a company's resilience to cyber security threats. This abstract emphasizes the significance of Enterprise Architecture in contemporary organizational structures and its influence on these matters, particularly at a time when cybersecurity threats are becoming more prevalent in the global business arena. By integrating Human Resources, Governance Frameworks, Technology, and Processes, Enterprise Architecture offers a holistic perspective of the Information Technology environment within an organization. By means of a methodical governance framework, Enterprise Architecture conducts comprehensive examinations of interdependencies among components, detects susceptibilities, and establishes robust groundwork for enhanced threat prevention. Enterprise Architecture is not only a proactive risk management tool, but it also contributes significantly to the overall business strategy. The integration of cybersecurity and enterprise architecture entails not only fortifying the technological infrastructure but also integrating it into the overarching business strategy. This enables the correlation of cybersecurity endeavors with the objectives of the organization, thereby connecting technological aspirations with business strategy. This study emphasizes the potential of incorporating adaptive and agile responses to threats into corporate culture to foster innovation. By functioning as a strategic catalyst, it assists organizations in adjusting to cyber threats, safeguarding business interests, and optimizing operations within an ever-evolving digital environment. By integrating governance and enterprise architecture frameworks, organizations can proactively mitigate business risks and cybersecurity threats, thereby fostering resilience and sustainability in the dynamic digital environment.

Research on the Corporate Innovation Resilience of China Based on FGM(1,1) and Fuzzy-Set Qualitative Comparative Analysis Model

Over the past few years, the uncertain business environment has shaped the resilient development thinking of firms. Measuring and predicting innovation resilience plays a crucial role in fostering the sustainable development of enterprises. This paper used the entropy-weight TOPSIS model and FGM(1,1) model to measure the innovation resilience of companies based on an indicator system, covering aspects such as tolerance for factor scarcity, R&D safety, core technology self-sufficiency, and organizational change capacity. The results show that the MAPE of the FGM(1,1) model is 0.0136, which is lower than that of the GM(1,1) model, with the predicted annual growth rate of the resilience being −0.95% from 2020 to 2025. Consequently, the study investigated what policy configuration may improve innovation resilience using the fuzzy-set qualitative comparative analysis (fsQCA) model. It identified four policy configuration paths, of which the combination of a tax policy for an additional deduction of enterprise R&D expenses and an income tax reduction policy is an effective policy configuration. This research expands the application of the FGM(1,1) model and inspires managers to develop innovative policies to enhance corporate resilience.

STRATEGY DEVELOPMENT OF SALES ORGANIZATION USING FUZZY AHP: DIGITAL TRANSFORMATION OF FMCG

A clear understanding of internal strength allows the company to innovate and adapt in a highly competitive Fast-moving consumer goods market. Therefore, the company's ability to oversee risk and opportunities determines the company's resilience. By employing homogeneous purposive sampling, which focused on the member population of 11 FMCG companies, the present study processed quantitative data from a questionnaire using a Likert scale and qualitative data through in-depth interviews with stakeholders. The data was collected through one-on-one in-depth interviews with 11 respondents online and offline in 12 major cities from August to November 2022. Later, questionnaires were processed using AHP Fuzzy to explain and take into account the role of decision-makers resembling FMCG leaders by defining interactive factors, actors, objectives, and strategies. Factor-actor analysis found that the sales director was the actor with the most influential role in the leadership factor, the sales manager was influential in the Organizational Citizenship Behavior factor, and the sales director was a prominent actor in sales management control. The main goal of the president director, IT/Digital director, supply chain director, and sales director in digital transformation is increasing effectiveness/efficiency in business processes. Besides, the sales manager and sales supervisor aspire to achieve sales targets or sales growth set by the company. In increasing effectiveness/efficiency and achieving sales targets/sales growth set by the company, prioritized strategy can be done through the development of leadership, capability, and human resource capacity. Besides, customer/business partner-oriented digitalization is vital for increasing customer/business partner satisfaction with the company's services/business processes. Furthermore, the present study found leadership models as critical for digital transformation with the realistic scenario (iterative improvement) in all likelihood. Sales organizations are expected to consistently and continuously conduct experiments to find new ways of working and produce digital initiatives that companies need to answer customer/consumer demands. Those strategies can be done by clearly identifying factors, actors, objectives, and strategies for better business execution in digital transformation.

Cash-Driven Resilience Capabilities and Cash Holdings of Manufacturing Companies During the Covid-19 Pandemic

Saving cash is one of the company’s precautionary motives. The Covid-19 pandemic has increased liquidity risk and more companies are experiencing financial difficulties. The cash holdings during the Covid-19 pandemic shows the company's resilience. This research aims to determine the state of cash-driven resilience and cash holdings of companies in Indonesia which are influenced by return on assets, profit margin, and productivity of assets, liquidity, leverage and firm size. The research was to observe the changes in cash-driven resilience, driven by changes in world conditions before the pandemic in 2018 and 2019, and during the pandemic in 2020 and 2021. This research uses purposive sampling technique on manufacturing companies on the Indonesia Stock Exchange. Hypotheses are analyzed using data regression models in Eviews 12. The research results are intended to help management determine the company's resilience and optimal level of cash holdings. This research found that there was no difference in CDR before and during Covid-19. There are differences between PA and LIQ variables on CDR but not on ROA, PM and LEV. The study also shows that there is no influence of ROA, PM, and LEV on CASH. Meanwhile PA, LIQ, and SIZE have positive effects on CASH. Keywords: Cash-Driven Resilience, Covid-19, Cash Holdings, and Financial Performance

Do environmental and social practices matter for the financial resilience of companies? Evidence from US firms during the COVID-19 pandemic

Do environmental and social practices matter for the financial resilience of companies? Evidence from US firms during the COVID-19 pandemic

Cultural Exchange and Resilience: Shaping Coffee Consumption in Saudi Arabia's Coffee Shops

The impact of cultural variety on coffee consumption habits in Saudi Arabia is investigated in this study, which focuses on coffee shops in Riyadh, Jeddah and Eastern Province. The study wants to know how cultural influences impact coffee culture and what it means for company resilience; provides insights for coffee shop owners to navigate the shifting market climate while promoting cultural interaction and appreciation by examining the relationship between cultural diversity, coffee consumption, and resilience. The research employs a qualitative case study technique, with in-depth interviews with coffee shop owners, employees, and customers, as well as observation of coffee shop settings. The collected data will be evaluated thematically to uncover patterns and insights; considered ethical factors to improve awareness of cultural influences in the coffee business and foster cultural interchange.
 The findings show that cultural variety has substantially enriched Saudi Arabia's coffee culture, leading to the emergence of inclusive coffee shops that cater to a wide range of tastes and preferences. The presence of people from different countries has allowed product innovation, cross-cultural collaboration, and information sharing in the coffee industry. Inclusive coffee shops also contribute to social cohesion by providing areas for cultural appreciation and understanding. The study emphasizes the significance of cultural variety in shaping coffee consumption patterns and building company resilience. Coffee shop owners and stakeholders can use these findings to develop inclusive coffee cultures that highlight the richness of Saudi society; contributing to the field of cultural studies by underlining the importance of cultural diversity in determining consumption patterns, increasing social cohesion, and enhancing corporate resilience in the coffee value chain.

Механизмы и каналы влияния зеленой экономики на развитие корпоративных финансов в США и ЕС

The study examines the impact of the green economy on the development of corporate finance in the US and the EU. The importance of the green economy is emphasized in the context of changing the paradigm of business practices and business models in the analyzed countries, where a significant emphasis is placed on digital technologies and ESG factors. The authors note that the transition to sustainable development and infrastructural development of environmentally friendly industries is impossible without the active intervention of the state. The mechanisms of the influence of the green economy on corporate finance are discussed, including regulation, fiscal policy, increasing operational efficiency, developing the product line, strengthening the brand and goodwill of the company, as well as the formation of green ecosystems. In addition, the phenomenon of greenwashing is revealed, as well as the process of developing international reporting standards in the field of sustainable development. The main channels of influence on strengthening the trend of sustainable development are listed and characterized. Emphasizes the importance of a green economy to increase the resilience of companies and create strategic advantages.

THE CONTRIBUTION OF CORPORATE SOCIAL RESPONSIBILITY (CSR) TO THE ORGANIZATIONAL RESILIENCE OF MOROCCAN COMPANIES

In an environment characterized by fragile prospects and the predominance of downside risks, the issue of organizational resilience is receiving increasing attention in the field of management research. Indeed, the repercussions of uncertain reality prompt us to investigate the role of CSR in the development of organizational resilience of Moroccan companies. In this regard, the ultimate goal of this communication is to examine the relationship between CSR and organizational resilience in the Moroccan context. Our papers examines the effect of CSR determinants on the three dimensions of organizational resilience of companies, while highlighting the moderating role of the size of the company in question. An empirical study conducted on 80 Moroccan companies allowed us to confirm the significant causal relationship between CSR and organizational resilience in our sample, and showed that there is a significant and positive moderation effect between CSR and only the absorptive capacity of the surveyed companies. The results of our investigation have allowed us to derive managerial implications and highlight the importance of a societal orientation of companies to confront the future environment.

Operational Management in the Digital Era: Strategic Integration with Entrepreneurship

The digital era has changed the business paradigm significantly, especially with the adoption of information technology and the emergence of digital entrepreneurship. This research aims to investigate the impact of the digital era and entrepreneurial development on company operational management. This research uses a qualitative approach with descriptive methods. The research results highlight that operational management is not only about production efficiency, but also strategic integration to respond to market dynamics. The findings show that successful entrepreneurial companies are those that are able to integrate new technologies, innovate products and services, and consider social and environmental responsibility. The ability to adapt to market changes quickly, restructure production processes, and improve product or service quality is the main key in building company resilience. The results of this research provide a valuable contribution in designing responsive and adaptive operational management strategies to face future business challenges.

Risk capability building post Covid-19 through improving competency in risk management

This study aims to understand how a pioneer Bus Rapid Transit (BRT) company in Indonesia strengthens its business resilience when facing uncertainty due to the COVID-19 pandemic. A qualitative research approach with the case study method is used where the primary data source is respondents, who are determined based on the purposive sampling method. Data collection and analysis were conducted using triangulation techniques by distributing questionnaires, structured interviews, and focus group discussions, which have helped discover that the pioneer BRT company is not fully prepared for the COVID-19 pandemic. The company then decided to strengthen risk management capabilities by increasing risk management competencies that support decision-making in responding to the impact of the COVID-19 pandemic. Risk leaders believe that strengthening risk capabilities can boost the company's resilience in the face of the COVID-19 pandemic and help it succeed in the new-normal era later. However, it is recommended that companies implement a business continuity management system based on the ISO 22301:2019 Business Continuity Management System (BCMS) standard as a systematic and comprehensive approach. The implication of implementing this standard is strengthening the company's readiness to deal effectively with risks of resilience and business continuity in the future.

AN APPROACH TO ANALYSIS OF THE IMPACT OF NATURAL DISASTERS ON THE ECONOMIC EFFICIENCY AND PROFITABILITY OF BUSINESS

Abstract. The paper purpose is to propose an approach to the analysis of the impact of various natural disasters (intense rainfall, extreme high or low temperatures, droughts, strong storms, floods, earthquakes and others) on the economic efficiency and profitability of the business. In this study, more specifically, the business companies in the sphere of production, trade and services are considered. These companies generate net income from sales of production, goods and services. In view of the successful development and sustainability of these companies, it is necessary to analyse the variations in specific ratios of two of the main business indicators (economic efficiency and profitability) under the influence of different natural disasters. The ratios related to the indicator of economic efficiency and profitability are calculated as the corresponding net revenues or profits from sales (of production, goods and services) are divided by one of the following variables: sum of the average balance values of current or fixed tangible assets, incurred full costs of the activity or other. Numerical results of several applications of the proposed approach with particular values of the variables that are included in the expressions describing the two business indicators are presented. The results of the analysis of the calculated values of the ratios related to the two business indicators (economic efficiency and profitability) before and after the possible occurrence of a given natural disaster can successfully support decision-making financial managers to take adequate measures to reduce the potential negative consequences, recover the normal operative activity or increasing resilience of companies.

Corporate Social Responsibility dan Ketahanan Perusahaan Dalam Menghadapi Pandemik di Asia Tenggara

This study aims to find empirical evidence regarding the influence of CSR on corporate resilience in facing the COVID-19 pandemic in Southeast Asia during the first and second waves of the pandemic. The independent variable in this research is the company's CSR which consists of economic, environmental and social disclosures, while the dependent variable is company resilience. There were 175 companies as research samples in the first wave and 176 in the second wave. Data is obtained from sustainability reports and annual reports published by each company through its official website. Using SmartPLS 3.3.9, it was found that, both in the first and second waves of COVID-19, overall CSR had a positive effect on corporate resilience. In the first wave, disclosure of economic topics had a positive effect on corporate resilience, but disclosure of environmental and social topics had a negative effect. In the second wave, disclosure of social topics had a positive effect on corporate resilience, but disclosure of economic and environmental topics had a negative effect. The implications of this research show that companies need to disclose their business continuity activities during a pandemic to increase corporate resilience. With the longer the pandemic lasts, social activities are more important than economic and environmental activities. The results of this study can enrich knowledge in the field of sustainability accounting which is useful for company management in managing corporate sustainability and also for investors in choosing their investment objects.

Analysis Of The Impact Of The Covid-19 Pandemic On Financial Performance And Survival Of Companies In The Food Beverage Idustrial Sector And Restaurant Services From Potential Bankruptcy Using Financial Ratio And Taffler Analysis Models

This study aims to identify the influence analysis of the Covid-19 pandemic's impact on financial performance and company resilience from potential bankruptcy in the food and beverage sector and restaurant service sector listed on The Indonesia Stock Exchange (IDX) before and during the COVID-19 pandemic. This study was measured using rentability ratios, profitability ratios, liquidity ratios, solvency ratios, and Taffler Models to measure the potential for bankruptcy of a company. The results indicated significant differences in the rentability ratios represented by the return on assets ratio in companies in the food and beverage sector. Meanwhile, other ratios and potential bankruptcy using the Taffler model did not show a significant difference. Furthermore, in restaurant service companies, there were significant differences in all ratios tested, namely rentability ratio, profitability ratios, liquidity ratios, solvency ratios, and bankruptcy potential using the Taffler model. This study also shows that the average company in the food and beverage sector has resistance to potential bankruptcy compared to those in the restaurant service sector.

Operating activities expenses in the non-financial reporting of electric power companies

This article provides an overview of key issues related to non-financial reporting on the operating activities expenses of electric power companies in Ukraine. Operating activities expenses are an important factor in ensuring financial stability and resilience of Ukrainian electricity companies. However, non-financial statements on these expenses can be challenging due to different types of expenses, calculation and presentation methods, and different perspectives of stakeholders. The article explores the role of stakeholders, particularly owners and investors, in ensuring the quality and transparency of non-financial reporting on operational expenses of Ukrainian electricity companies. The article emphasizes that financial reporting provides an instant snapshot of the financial performance and position of the company, including revenues, profits, assets, and liabilities, while non-financial reporting provides a more complete picture of the company's performance and impact, including on the environment, social and governance practices, operations, and management. The research in this article helps to understand the operational expenses reflected in the non-financial reporting of Ukrainian electricity companies and how these expenses impact environmental, social, and governance practices of the companies. With this information, energy companies and other stakeholders can improve their efficiency and transparency of reporting. The results of the research indicate that the presence of quality non-financial reporting in Ukrainian electricity companies is crucial for their stability and resilience, particularly in light of increasing interest in sustainable and environmentally friendly technologies. Furthermore, it can be concluded that more transparent and accurate non-financial reporting reduces the risks of financial instability and promotes attracting new investors. Therefore, this article can be useful for electricity companies and other stakeholders in understanding the importance of non-financial reporting on operational expenses and its impact on the sustainability and resilience of the companies.

ОРГАНИЗАЦИОННЫЙ ПОДХОД К ОБЕСПЕЧЕНИЮ ЖИЗНЕСПОСОБНОСТИ КОМПАНИЙ: КЛЮЧЕВЫЕ ИДЕИ

The growing uncertainty of business environment and decreasing of the companies’ life as a global trend actualize the developments to ensure their resilience. In the article the resilience study levels, different approaches toward the resilience of companies and their brief description are examined, the conceptual apparatus is clarified, and the relations of the concept of “resilience” with similar con-cepts of “survivability”, “hardiness”, “adaptability”, and “sustainable development” are determined. Based on the example of well-known works the insufficient theoretical development has been revealed in terms of the existing approaches, limiting the creation of scientific and practical tools. An organizational approach as a scientific basis for ensuring resilience of the companies is proposed, which is based on the identified universal principles of resilience. The key idea of the approach is formulated, according to which resilience can be ensured by forming the company’s behavior model, which is relevant to the business environment, conducting of monitoring, correcting the behavior model and the timely replace-ment. The author's idea of the essence and structure of the company’s behavior model, and the ways to ensure its flexibility is given, and the directions of development of the stated theoretical provisions are outlined.

Innovation as a lever for business resilience in times of crisis: The case of Morocco’s energy sector

Today’s businesses are increasingly confronted with uncertainty, unpredictability and environmental complexity, as well as severe, recurrent and consecutive crises. In this context, innovation and resilience are the watchwords. Resilience refers to a company’s ability to adapt and recover from shocks and disruptions. Innovation, on the other hand, is the process by which new ideas, products, services or methods are developed, implemented and adopted. Despite the abundance of research on organizational resilience and innovation, very few have addressed the relationship between these two concepts, let alone in the Moroccan context. The objective of this article is to analyze the relationship between these two key concepts and to explore how innovation can be a lever for organizational resilience in times of crisis. To do this, we conducted a qualitative study, through semi-structured interviews with Moroccan companies operating in the energy sector. The main results confirm the existence of a positive correlation between the two concepts. However, innovation alone does not guarantee the exit from the crisis and the resilience of companies. In order to validate and generalize the results obtained, we recommend conducting a confirmatory quantitative study.

Building The Resilience of Enterprises Through Financial Insurance: The Scale and Dynamics of The Phenomenon in Poland

Business activities involve high risk. Nowadays, in times of many challenges emerging at the same time, financial risk is becoming particularly important in business. Its implementation may have serious consequences for the further functioning of the company, reducing the overall resilience of companies to emerging challenges. Entrepreneurs take various actions to reduce financial risk, including the transfer of risk to an insurance institution. The aim of our study is to determine the scale and dynamics of changes in the use of financial insurance by Polish companies in the context of building their resilience. The research used literature studies and reports from the Polish Financial Supervision Authority. The analysis covers the years 2010-2021. Over the last decade, the importance of financial insurance in business risk management has been increasing. The increase in the number of financial insurance contracts means increased protection in the event of inability to repay a loan, loss of profits, or reduced risk in the event of contractors’ insolvency. Entrepreneurs mostly purchased insurance for various financial risks and used insurance guarantees to a lesser extent. The number of financial insurance benefits paid increased threefold in the analyzed period. In turn, the value of claims settled (paid) under financial insurance decreased. Similar trends were visible for the average value of compensation paid.

Testing Effect of Social Sustainability Implementation on Company Resilience and the Economic Impact of COVID-19

This study aims to examine the effect of implementing social sustainability on companyperformance. This study took a sample of 250 employee respondents at all levels from160 companies in the motorcycle supply chain that were able to survive the pandemic.Using management commitment variables and financial support as exogenous variables,company performance as an endogenous variable, and social sustainability as mediatorvariables. The data was processed using SEM-PLS with a degree of variability of 5%to evaluate the direct and indirect relationship to company performance. The researchfindings show that all variables, namely management commitment, financial support,and social sustainability, are positively and significantly correlated with companyperformance. Different results are shown when measuring its indirect effect oncompany performance. Management commitment through the implementation of socialsustainability consistently shows a positive and significant correlation, while financialsupport shows a positive correlation although it is not significant to the company’sperformance. This result is influenced by the direct relationship of financial supportto social sustainability, which, although positively correlated, is not significant. Thisstudy also succeeded in identifying the implementation of social sustainability thatwas meaningful for the manufacturing sector being studied. This finding is a strongindication of a positive reciprocal relationship between the implementation of socialsustainability—employee loyalty—and company resilience. Hopefully, this kindof research can be expanded with different variables, indicators, and conditions tocomplement and enrich knowledge of sustainability.

Beyond the COVID-19 pandemic: what builds organizational resilience capacity?

PurposeThe outbreak of the coronavirus pandemic (COVID-19) has severely disrupted businesses around the world. To address the impact of operational and strategic business disruptions, this paper contributes to the practice of a firm's management in terms of identifying the determinants of organizational resilience (OR) and creating a hierarchical model of the potential sources of a firm's adaptive capability.Design/methodology/approachA novel research framework integrating Pareto analysis, grey theory and total interpretive structural modeling (TISM) has been applied to, first, identify the sources of a company's resilience and, second, to determine contextual relations among these sources of OR.FindingsThe findings of the survey highlight three primary sources that allow companies to build companies' resilience: access to financial resources, digitization level and supply chain (SC) collaboration. The authors' model shows that resilience cannot be viewed as a particular feature but rather as a dynamic intertwined network of different co-dependent sources.Research limitations/implicationsThe proposed hierarchical model indicates that the most crucial sources of company's resilience in the recent pandemic are access to financial resources, digitization level and SC collaboration.Originality/valueThe study takes an original investigation on cognitive grounds, touching on the problem of firms' resilience to the unique nature of the crisis caused by the COVID-19 pandemic. The study also represents one of the few attempts to use integrated Pareto analysis, grey theory and TISM to examine this critical area of firm management.