Corporate Resilience in the Face of the COVID-19: A proposal for A Business Resilience Index
Wissem AJILI (a) , Imen BEN SLIMENE (b), Mourad KERTOUS (c), Abdelhak NASSIRI (c), Samir MALIKI (d), Mohammed ElAmine ABDELLI (e), Afef KHALIL (f)
(a): ESLSCA- Paris Business School, 11 rue de Cambrai 75 019 Paris-France / (b):CREGO( EA7317)-University of Upper Alsace Colmar-France / (c):AMURE (UMR6038)-University of Brest- Bretagne- France / (d):MECAS- University of Tlemcen- Algeria / (e)LEGO-University of Brest- France / (f)University of Carthage- Tunisia
The paper aims to analyze how firms have coped with the COVID-19 pandemic to date. Based on a World Bank survey between May and October 2020, the study examines firm resilience factors in ten European and Mediterranean countries. Both macro-economic and firm-level considerations are analyzed to identify the attributes of firms’ resilience to the COVID-19 crisis. Through a cross-sectional study of a sample of 3.722 firms in all industries, we analyze how firms cope with the current health and economic crisis. By constructing a multidimensional index identifying companies resilient to the COVID-19 pandemic, the paper contributes to the theoretical and empirical literature related to resilience in extreme events. Indeed, by adopting both reactive and proactive responses to mobilize existing capacities and develop new ones, firms increase their hopes of emerging more resilient from this crisis.
Our study’s results show that companies’ resilience is relatively low in the face of the COVID-19 crisis. More than 80% of the sample’s companies have a business resilience index equal to 2 on a scale of 8. Mediterranean companies are less resilient than Eastern European ones. In terms of sector-specific resilience, manufacturing and retail companies are more resilient than those of the services sector.
Our study has managerial implications by enlightening managers on facing uncertainty and global crises such as pandemics and natural disasters. by analyzing both microeconomic factors (internal factors) and macroeconomic factors (government support measures), the study helps governments implement more effective policies to respond to the crisis.
Keywords: Business resilience, COVID-19 pandemic, resilience factors, business’s coping strategies in crisis, international investigation