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Effective Crisis Management during Adversity: Organizing Resilience Capabilities of Firms and Sustainable Performance during COVID-19

Author

Listed:
  • Chenguang Hu

    (Department of Management, Faculty of Business and Management, Beijing Normal University-Hong Kong Baptist University United International College, Zhuhai 519085, China)

  • Kyung Hwan Yun

    (Department of International Trade, Jeonbuk National University, Jeonju 54896, Korea)

  • Ziqi Su

    (Department of Economics, The University of Hong Kong, Hong Kong 999077, China)

  • Chang Xi

    (Financial Risk Management Program, School of Business, University of Connecticut, Storrs, CT 06269-1041, USA)

Abstract

Drawing on crisis management and organizational resilience literature, this study adopts a firm’s capability-based perspective of organizational resilience to examine how different sets of firm-based resilient capabilities a firm has developed can help a firm achieve sustainable firm performance during a crisis. We took a configurational approach and applied the fsQCA method to examine how various combinations of a firm’s financial, cognitive, and behavioral capabilities as causal conditions can affect firm financial performance. For the empirical analysis, 21 listed Chinese film and television firms were selected. We collected information on financial capability from 2018 to 2020, and on cognitive and behavioral capabilities and firm size in 2020. This study obtains six configurations or paths that lead to the improved performance. Overall, the findings indicate that if a large firm has a low level of financial capability, it needs to leverage its cognitive capability instead of behavioral capability. A small firm with high financial capability needs to quickly leverage its cognitive capability but can use less behavioral capability. On the other hand, small firms with low financial capability need to utilize its behavioral capability to take quicker actions. With comprehensive analysis and multiple-perspective comparison of configurations, the study proposes various response strategic suggestions for firms with different sizes during the COVID-19 epidemic in China.

Suggested Citation

  • Chenguang Hu & Kyung Hwan Yun & Ziqi Su & Chang Xi, 2022. "Effective Crisis Management during Adversity: Organizing Resilience Capabilities of Firms and Sustainable Performance during COVID-19," Sustainability, MDPI, vol. 14(20), pages 1-20, October.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:20:p:13664-:d:949672
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