A Study on Firm Resilience During Covid-19: Investigating Capabilities that Enable Firms to Effectively Cope with Disruptions

Abstract

The purpose of this thesis is to examine the relationship of disruption orientation, proactive risk management, industry competition, financial capital, and diversified income stream on firm resilience in the context of the recent Covid-19 pandemic. To accomplish this objective, we adopted a quantitative research methodology, employing a carefully designed questionnaire that was completed by 163 participants across various industries affected by the pandemic. The questionnaire was specifically designed to address the impact of the recent disruption caused by the Covid-19 pandemic on organizations. This choice was motivated by the disruptions recent occurrence and widespread impact across all industries. Our findings reveal significant associations between firm resilience and three key capabilities: disruption orientation, financial capital, and diversified income stream. Despite examining the potential mediating role of proactive risk management and the moderating influence of industry competition on the relationship between disruption orientation and firm resilience, our study did not yield a statistical significance supporting these hypotheses. Beyond contributing to existing knowledge of firm resilience, our study also found that financial capital and having a diversified income stream are capabilities that have a positive association with firm resilience. Furthermore, this study identifies several areas for future research aiming to deepen the understanding of capabilities associated with firm resilience. Overall, this thesis sheds light on essential factors associated with firm resilience and provides valuable insights for both scholars and practitioners interested in enhancing organizational preparedness in the face of disruptions