Why can organizational resilience not be measured?
Abstract
Our aim is to justify why organizational resilience cannot be measured in an ex-ante way and the consequences we can draw from it. To achieve this goal, we examine the relations between different approaches to organizational resilience and the tight interrelation between organizational resilience and organizational and dynamic capabilities. We argue that most proposals about organizational resilience conceptualization, and the metrics derived from them, are closely related. They represent the same core concepts, facts, and relations. Additionally, far from there being no consensus about organizational resilience, researchers are presenting the same ideas with different terms. This implies that there are no better or worse definitions or conceptualizations for organizational resilience, but models are more or less suitable depending on the approach to be established. We agree with the proposal that organizational resilience is a dynamic capability and, as such, it should be studied and considered. This review led us to conclude that because organizational resilience is a dynamic process, it cannot be measured or estimated in an ex-ante way. The fact that organizational resilience cannot be measured brings us to the question of how organizations can address organizational resilience improvement, evaluate their progress, and the tools they can use.
Keyword : organizational resilience, conceptualization, measurement, models, dynamic capabilities, risks, firm behavior
How to Cite
Sevilla, J., Ruiz-Martín, C., Nebro, J. J., & López-Paredes, A. (2023). Why can organizational resilience not be measured?. Journal of Business Economics and Management, 24(2), 199–220. https://doi.org/10.3846/jbem.2023.18819
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
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Engemann, K. J., & Henderson, D. M. (2014). Business continuity and risk management: Essentials of organizational resilience. Rothstein Publishing.
Escamilla-Solano, S., Plaza-Casado, P., & Prado-Román, M. (2020). Organizational capability. In E. G. Carayannis (Ed.), Encyclopedia of creativity, invention, innovation and entrepreneurship (pp. 1791–1794). Springer International Publishing. https://doi.org/10.1007/978-3-319-15347-6_200016
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Helfat, C E. (2003). The SMS Blackwell handbook of organizational capabilities: Emergence. Development, and Change. Blackwell Publishing.
Helfat, C. E., Finkelstein, S., Mitchell, W., Peteraf, M., Singh, H., Teece, D., & Winter, S. G. (2009). Dynamic capabilities: Understanding strategic change in organizations. John Wiley & Sons.
Hillmann, J. (2021). Disciplines of organizational resilience: Contributions, critiques, and future research avenues. Review of Managerial Science, 15(4), 879–936. https://doi.org/10.1007/s11846-020-00384-2
Home III, J. F., & Orr, J. E. (1997). Assessing behaviors that create resilient organizations. Employment Relations Today, 24(4), 29–39. https://doi.org/10.1002/ert.3910240405
Hundal, G. S., Thiyagarajan, S., Alduraibi, M., Laux, C. M., Furterer, S. L., Cudney, E. A., & Antony, J. (2021). Lean Six Sigma as an organizational resilience mechanism in health care during the era of COVID-19. International Journal of Lean Six Sigma, 12(4), 762–783. https://doi.org/10.1108/IJLSS-11-2020-0204
Ilseven, E., & Puranam, P. (2021). Measuring organizational resilience as a performance outcome. Journal of Organization Design, 10, 127–137. https://doi.org/10.1007/s41469-021-00107-1
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International Organization for Standardization. (2019). Security and resilience – Business continuity management systems – Requirements (ISO Standard No. 22301:2019). https://www.iso.org/obp/ui/#iso:std:iso:22301:ed-2:v1:en
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Joshi, A., Kale, S., Chandel, S., & Pal, D. K. (2015). Likert scale: Explored and explained. Journal of Applied Science & Technology, 7(4), 396–403. https://doi.org/10.9734/BJAST/2015/14975
Koronis, E., & Ponis, S. (2018). Better than before: The resilient organization in crisis mode. Journal of Business Strategy, 39(1), 32–42. https://doi.org/10.1108/JBS-10-2016-0124
Laaksonen, O., & Peltoniemi, M. (2018). The essence of dynamic capabilities and their measurement. International Journal of Management Reviews, 20(2), 184–205. https://doi.org/10.1111/ijmr.12122
Lam, W. (2002). Ensuring business continuity. IT Professional, 4(3), 19–25. https://doi.org/10.1109/MITP.2002.1008533
Lee, A., Vargo, J., & Seville, E. (2013). Developing a tool to measure and compare organizations’ resilience. Natural Hazards Review, 14(1), 29–41. https://doi.org/10.1061/(ASCE)NH.1527-6996.0000075
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Linnenluecke, M. K., & Griffiths, A. (2012). Assessing organizational resilience to climate and weather extremes: Complexities and methodological pathways. Climatic Change, 113(3), 933–947. https://doi.org/10.1007/s10584-011-0380-6
Likert, R. (1932). A technique for the measurement of attitudes. Archives of Psychology, 22(140), 55.
Liu, Y., Chen, R., Zhou, F., Zhang, S., & Wang, J. (2021). Analysis of the influencing factors of organizational resilience in the ISM framework: An exploratory study based on multiple cases. Sustainability, 13(23), 13492. https://doi.org/10.3390/su132313492
Mallak, L. A. (1998). Measuring resilience in health care provider organizations. Health Manpower Management, 24(4), 148–152. https://doi.org/10.1108/09552069810215755
McManus, S., Seville, E., Brunsdon, D., & Vargo, J. (2007). Resilience management. A framework for assessing and improving the resilience of organisations. Resilient Organisations, New Zealand.
Mitchell, T., & Harris, K. (2012). Resilience: A risk management approach (Background note). Overseas Development Institute.
Nagarajan, R., & Prabhu, R. (2015). Competence and capability: A new look. International Journal of Management, 6(6), 7–11.
Ortiz-de-Mandojana, N., & Bansal, P. (2016). The long-term benefits of organizational resilience through sustainable business practices. Strategic Management Journal, 37(8), 1615–1631. https://doi.org/10.1002/smj.2410
Parsons, D. (2007, December 5–7). National organisational resilience framework workshop: The outcomes. National Organisational Resilience Framework Workshop, Mt. Macedon Victoria, Australia.
Pathak, D., & Joshi, G. (2021). Impact of psychological capital and life satisfaction on organizational resilience during COVID-19: Indian tourism insights. Current Issues in Tourism, 24(17), 2398–2415. https://doi.org/10.1080/13683500.2020.1844643
Păunescu, C., & Argatu, R. (2020). Critical functions in ensuring effective business continuity management. Evidence from Romanian companies. Journal of Business Economics and Management, 21(2), 497–520. https://doi.org/10.3846/jbem.2020.12205
Porter, M. E. (2011). Competitive advantage of nations: Creating and sustaining superior performance. Simon and Schuster.
Ruiz-Martin, C., Lopez-Paredes, A., & Wainer, G. (2018). What we know and do not know about organizational resilience. International Journal of Production Management and Engineering, 6(1), 11–28. https://doi.org/10.4995/ijpme.2018.7898
Samba, C., & Vera, D. M. (2013). Toward a theory of organizational resilience: The assessment-acceptance-amendment model. Academy of Management Proceedings, 2013(1), 16476. https://doi.org/10.5465/ambpp.2013.16476abstract
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