How Can Resilience Create and Build Market Value?

Abstract

Resilience of an organization is increasingly being perceived as the key factor that enables businesses to bounce back from the inevitable ‘curved balls’ posed by big challenges such as economic, environmental and health impacts (as with the current pandemic), technological discontinuities, regulatory changes, geopolitical shocks, industry de-verticalization and dis-intermediation, sudden shifts in consumer tastes and many/new non-traditional competitors who undermine the disadvantages of incumbency.

Organizational resilience defined: Key definitions in the classical literature specify it as a dynamic capability and ‘ability to effectively absorb, develop situation-specific responses to, and ultimately engage in transformative activities to capitalize on disruptive surprises that potentially threaten organization survival’ (Lengnick-Hall et al., 2011).

This article attempts to study how resilience can be built in organizations and how it generates market/customer value for businesses in the long haul.