Organizational resilience: a comparative study between innovative and non-innovative companies based on the financial performance analysis

Abstract

Organizational resilience is defined as the ability and capacity of an organization to withstand unexpected changes, discontinuities and environmental risks. Innovation contributes to achieve resilience as it enables organizations to renew over time. Our aim in this article is to analyze the relationship between innovation and resilience from the financial performance analysis with EBITDA, ROE and ROA indicators. We investigated a total of 10 companies divided into two groups, where the first was a group of 5 open-capital companies listed in the ranking of the 50 most innovative companies in Brazil, and the second being a group of 5 open-capital companies not listed in the ranking. We performed an analysis in two stages: the first consisted in calculating the indexes selected in the four fiscal years - 2011, 2012, 2013 and 2014 - chosen by coinciding with a period after the 2008-2009 crisis; in the second stage, we compared the indexes of the two groups of companies in the four established periods. The results indicate that innovative companies are able to sustain higher financial results than those non-innovative companies. As a main contribution, our study provides a longitudinal comparative analysis, thus providing evidence on the financial performance of innovative enterprises.

Organizational resilience: a capability-based conceptualization

“…Previous research agrees that financial resources can help to handle acute crises and recover from them (e.g., Burke 2005;de Carvalho et al 2016;Lampel et al 2014). Analyzing airline industry responses to September 2011, Gittell et al (2006) found that airlines with greater financial resources (low levels of debt and high levels of cash on hand) were able to retain staff (instead of laying off staff) and thus had more human resources to recover.…”

Hotels in contexts of uncertainty: Measuring organisational resilience

“…Performance. Based on literature review (e.g., Dalziell & McManus, 2004 ; De Carvalho et al, 2016 ; Rodríguez-Sánchez, Guinot, Chiva, & López-Cabrales, 2019 ), this research evaluates hotel performance with both economic and intangible indicators. The developed scale includes five items such as return on investment, average sales growth, average market share growth, company image and reputation, and customer loyalty.…”

“…In this line, Chowdhury et al (2019) evidence an empirical association between adaptive resilience and business performance post-disaster, considering levels of debt, cash flow or profitability. Also, De Carvalho, Ribeiro, Cirani, and Cintra (2016) suggest that innovative companies are more resilient and better able to withstand crisis situations, in terms of financial performance measured by economic indicators such as return on asset and return on equity. Dalziell and McManus (2004) propose a holistic approach arguing that organisational resilience may be reaching stated objectives or mission statement areas, such as dividends for shareholders or reputation for quality products.…”

Resiliência: uma Bibliometria em Bases de Dados Nacionais e Internacionais

“…Hamel e Välikangas (2003) argumentaram que as organizações de sucesso são aquelas que entendem a natureza dinâmica de seus ambientes de negócios, dispostas a adaptarem-se às súbitas mudanças no ambiente. Carvalho et al (2016) propõem que é através da inovação que a organização será capaz de se renovar ao longo do tempo.…”