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The impact of environmental turbulence on business sustainability through organisational resilience and dynamic capabilities

Author

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  • Mohammad Hamsal
  • Mohammad Ichsan
  • Hendro Wicaksono

Abstract

This paper investigates how the telecom sector's organisational resilience in Indonesia responds to environmental turbulence and how it affects business sustainability during the COVID-19 pandemic. An integrated conceptual framework is developed and empirically tested using survey data from 158 telecommunication companies and analysed using partial least square structural equation modelling. This study reveals that environmental turbulence significantly and positively influences dynamic capabilities and organisational resilience. Based on the path analysis result, the relationship between environmental turbulence and business sustainability is fully mediated by both dynamic capabilities and organisational resilience. The study has expanded the determinants of organisational resilience in the context of a pandemic as part of environmental turbulence. This study finally shows that dynamic capabilities and organisational resilience are key determinants to business sustainability in the turbulent business environment such as the COVID-19 pandemic to telecom companies. Many lessons can be learned by the telecom companies due to this pandemic situation including business model alignment as a consequence of responding to environmental turbulences.

Suggested Citation

  • Mohammad Hamsal & Mohammad Ichsan & Hendro Wicaksono, 2023. "The impact of environmental turbulence on business sustainability through organisational resilience and dynamic capabilities," International Journal of Business Environment, Inderscience Enterprises Ltd, vol. 14(4), pages 417-439.
    • Handle: RePEc:ids:ijbenv:v:14:y:2023:i:4:p:417-439
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