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Resilience: Lessons from banks that have braved the economic crisis—And from those that have not

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  • Markman, Gideon M.
  • Venzin, Markus

Abstract

Resilience – a firm's ability to adapt, endure, quickly bounce back, and then thrive despite a catastrophic event – addresses diverse managerial constructs including performance (Carmeli & Markman, 2011). Our exploratory study expands this line of research by making two contributions: first, we develop and test a new revelatory measure for resilience – VOLARE – combining financial performance measures with volatility data. Then, applying this new measure to the financial industry, from 2002 to 2011, we identify highly resilient international financial services firms (IFSFs; e.g., banks) and compare them with less resilient IFSFs. Second, we assess three factors – bank size, home-market solidity, and product and market complexity – that the literature has traditionally shown to be highly predictive of banks’ performance. Consistent with our expectations, the results corroborate that VOLARE is complementary to, but distinct from, traditional financial measures of firm performance. We explain these deviations from traditional studies and suggest further research topics.

Suggested Citation

  • Markman, Gideon M. & Venzin, Markus, 2014. "Resilience: Lessons from banks that have braved the economic crisis—And from those that have not," International Business Review, Elsevier, vol. 23(6), pages 1096-1107.
  • Handle: RePEc:eee:iburev:v:23:y:2014:i:6:p:1096-1107
    DOI: 10.1016/j.ibusrev.2014.06.013
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    References listed on IDEAS

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    1. repec:eee:iburev:v:26:y:2017:i:3:p:417-434 is not listed on IDEAS
    2. Annarelli, Alessandro & Nonino, Fabio, 2016. "Strategic and operational management of organizational resilience: Current state of research and future directions," Omega, Elsevier, vol. 62(C), pages 1-18.
    3. Christian Busse, 2016. "Doing Well by Doing Good? The Self-interest of Buying Firms and Sustainable Supply Chain Management," Journal of Supply Chain Management, Institute for Supply Management, vol. 52(2), pages 28-47, April.
    4. repec:eee:iburev:v:26:y:2017:i:6:p:1088-1099 is not listed on IDEAS
    5. repec:eee:iburev:v:27:y:2018:i:4:p:767-776 is not listed on IDEAS
    6. Daniel Ştefan Armeanu & Georgeta Vintilă & Ştefan Cristian Gherghina & Dan Cosmin Petrache, 2017. "Approaches on Correlation between Board of Directors and Risk Management in Resilient Economies," Sustainability, MDPI, Open Access Journal, vol. 9(2), pages 1-15, January.

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