Enterprise Resilience Behavioral Management in a Decision Support System

Document Type : Research Paper

Authors

1 Professor, Department of Marketing, Reputation and Customer Experience Management, State Biotechnological University, 44 Alchevskikh Street, Kharkiv, 61002, Ukraine.

2 Assistant Professor, Department of Marketing, Reputation and Customer Experience Management, State Biotechnological University, 44 Alchevskikh Street, Kharkiv, 61002, Ukraine.

3 Associate Professor, Department of Marketing, Reputation and Customer Experience Management, State Biotechnological University, 44 Alchevskikh Street, Kharkiv, 61002, Ukraine.

10.22059/jitm.2024.99053

Abstract

This article identifies the factors for managing the behavioral resilience of a firm in the face of exogenous shocks in the economy. Its main hypothesis is that each enterprise has certain resilience competencies that need to be strengthened and developed in the future. The paper identifies 17 key competencies that determine the behavioral resilience of an enterprise. Using the method of factor analysis, a model of behavioral resilience is built, which is used to support management decision-making.  The factor model of behavioral resilience SELF&IRR includes 7 competencies: S – Speed of response to processes and events; E – Endurance; L – Leadership; F – Flexibility; I – Innovation, ideas, ingenuity; R – Responsibility; R – Resource capabilities. This model can be used to determine the level of behavioral resilience, based on which a decision is made on the choice of the enterprise's strategy. Depending on the level of behavioral resilience, the management staff decides on the choice of a certain strategy (systemic transformation; structural transformation; local changes in the firm's competencies; adaptation of competencies to changes), which is aimed at strengthening the firm's viability and development. The successful execution of a chosen strategy enhances the firm's capacity to withstand current and future threats while actively seeking or purposefully creating new opportunities for development.

Keywords


 ACC. (2023). Doing business in wartime Ukraine. Survey by the American Chamber of Commerce in Ukraine and Citi Ukraine. Retrieved June 4, 2024, from https://chamber.ua/wp-content/uploads/2023/09/AmCham-Citi-Survey_Doing-Business-in-Wartime-Ukraine_UA.pdf.
Acquaah, M., Amoako-Gyampah, K. & Jayaram, J. (2011).Resilience in family and nonfamily firms: An examination of the relationships between manufacturing strategy, competitive strategy and firm performance. International Journal of Production Research, 49, 5527–5544.
Altintas G. & Royer I. (2009). Reinforcing resilience through post-crisis learning: a longitudinal study of two periods of turbulence. Management, 12(4), 266–93. DOI: 10.3917/mana.124.0266.
Apelt H., Velykochyy V., Zhehus O., Filiuk S., Zhumbei M. (2019) Formation of a Strategy for Providing Customer-Oriented Tourist Services. Academy of Strategic Management Journal. 18 (Special Issue 1). Retrieved June 4, 2024, from https://www.abacademies.org/articles/formation-of-a-strategy-for-providing-customeroriented-tourist-services-8815.html.
Asare-Kyire, L., Bonsu, C., Appienti, W. & Ackah, O. (2023) Organizational Resilience, Innovation and Firm Performance: Moderating Role of Social Ties. Open Journal of Business and Management, 11, 2034-2050. doi: 10.4236/ojbm.2023.115112.
Babenko, V. (2020). Enterprise Innovation Management in Industry 4.0: Modeling Aspects. Emerging Extended Reality Technologies for Industry 4.0: Early Experiences with Conception, Design, Implementation, Evaluation and Deployment, 141–163. https://doi.org/10.1002/9781119654674.ch9.
Babenko, V., Kulczyk, Z., Perevozova, I., Syniavska, O., Davydova, O. (2019). Factors of Development of International e-Commerce in the Context of Globalization. CEUR Workshop Proceedings, 2422, 345-356. Received June 4, 2024, from http://ceur-ws.org/Vol-2422/paper28.pdf.
Burnard, K. & Bhamra, R. (2011). Organisational resilience: Development of a conceptual framework for organisational responses. International Journal of Production Research, 49, 5581–5599.
Chen, R., Xie, Y. & Liu, Y. (2021). Defining, Conceptualizing, and Measuring Organizational Resilience: A Multiple Case Study. Sustainability. 13, 2517. https://doi.org/ 10.3390/su13052517.
Coutu, D.L. (2002). How resilience works. Harvard Business Review,80, 46–51.
Diia.Biznes (2024). Survey of the state and needs of business in times of war: results of the survey in December 2023 - January 2024. June 4, 2024, from https://business.diia.gov.ua/uploads/7/37703-rezul_tati_opituvanna_biznesu_sicen_2024_1.pdf.
Do, H., Budhwar, P., Shipton, H., Nguyen, H. D., & Nguyen, B. (2022). Building organizational resilience, innovation through resource-based management initiatives, organizational learning and environmental dynamism. Journal of Business Research, 141, 808-821.
Duchek S. (2020). Organizational resilience: a capability-based conceptualization. Business Research. 13, 215–246. https://doi.org/10.1007/s40685-019-0085-7.
European Commission (2021). 2020 Strategic Foresight Report. Charting the Course towards a more resilient Europe. Received June 4, 2024, from https://commission.europa.eu/system/files/2021-04/strategic_foresight_report_2020_1_0.pdf.
Fleming, R.S. (2012). Ensuring organizational resilience intimes of crisis. Journal of Global Business, 6,  31–34.
FM Global Resilience Index (2024). Create stronger supply chains, target new markets and sites. Retrieved June 4, 2024, from https://www.fmglobal.com/research-and-resources/tools-and-resources/resilienceindex.
Freeman, S.F., Hirschhorn, S.J. & Maltz, M. (2004). Thepower of moral purpose: Sandler O’Neill & Partners in the aftermath of September 11th. 2004.Organizational Development Journal, 22, 69–81.
Garrido-Moreno, A., Martín-Rojas, R., & García-Morales, V. J. (2024). The key role of innovation and organizational resilience in improving business performance: A mixed-methods approach. International Journal of Information Management, 77, 102777.
Gontareva, I., Babenko, V., Shmatko, N., Litvinov, O., Hanna, O. (2020). The Model of Network Consulting Communication at the Early Stages of Entrepreneurship. WSEAS Transactions on Environment and Development, 16, 390-396. https://doi.org/10.37394/232015.2020.16.39.
Gryshchenko, O., Babenko, V., Bilovodska, O., Voronkova, T., Ponomarenko, I., Shatskaya, Z. (2022). Green tourism business as marketing perspective in environmental management. Global Journal of Environmental Science and Management, 8(1), 117-132. https://doi.org/10.22034/gjesm.2022.01.09.
Hafele, J., Barth, J., Le Lannou, L-A., Bertram, L., Tripathi, R., Kaufmann, R., & Engel, M. (2022). A framework for economic resilience: guiding economic policy through a social-ecological transition. ZOE Institute for Future-fit Economies: Cologne.
Hafele, J., Bertram, L., Demitry, N., Le Lannou, L-A., Korinek, L. & Barth, J. (2023). The Economic Resilience Index: assessing the ability of EU economies to thrive in times of change. ZOE Institute for Future-fit Economies: Cologne.
Hamel, G. & Välikangas, L. (2003). The quest for resilience. Harvard Business Review, 81, 52–63
Hillmann, J., & Guenther, E. (2021). Organizational resilience: A valuable construct for management research? International Journal of Management Reviews, 23(1), 7–44.  https://doi.org/10.1111/ijmr.12239
Illiashenko O., Zhehus О., Matviychuk L., Lopatovskyi V., Rudnichenko Ye. & Havlovska N., (2020). Improving accounting-analytical processes of personnel management in the context of relevant threats and risks for an enterprise economic security system. International Journal of Scientific & Technology Research. 9(04), 105-110.
Kantur, D., & Say, A. I. (2015). Measuring organizational resilience: a scale development. Journal of Business Economics and Finance, 4(3). https://doi.org/10.17261/Pressacademia.2015313066.
Ligonenko L.& Andriychuk V. (2023). Resilience in the economic context: analysis of global trends and prospects for research. Strategy of Economic Development of Ukraine. 52, 16-37.
Malyarets, L., Draskovic, M., Babenko, V., Kochuyeva, Z., Dorokhov, O. (2017). Theory and practice of controlling at enterprises in international business. Economic Annals-ХХI, 165(5-6), 90-96. Retrieved June 4, 2024, from https://doi.org/10.21003/ea.V165-19
Maor D., Park М. & Weddle B. (2022). Raising the resilience of your organization. Retrieved June 4, 2024, Retrieved June 4, 2024, from https://www.mckinsey.com/capabilities/people-and-organizational-performance/our-insights/raising-the-resilience-of-your-organization
McCarthy, I.P., Collard, M. & Johnson, M. (2017). Adap-tive organizational resilience: An evolutionary perspec-tive. Current Opinion in Environmental Sustainability, 28, 33–40
Nguyen H.H., Ngo V.M.&Tran A.N.T. (2021). Financial performances, entrepreneurial factors and coping strategy to survive in the COVID-19 pandemic: case of Vietnam. Res Int Bus Finance. 56:101380. doi: 10.1016/j.ribaf.2021.101380.
Olsson, P., Galaz, V., & Boonstra, W. J. (2014). Sustainability transformations: a resilience perspective. Ecology and Society, 19(4). Retrieved June 4, 2024, from http://www.jstor.org/stable/26269651
Savytska, N.Zhehus, O.Chmil, H., Uchakova N., Androsova, & T.Priadko, O. (2022). Applied Research of Digital Readiness of Retails. WSEAS Transactions on Environment and Development. 18,798–809. Retrieved June 4, 2024, from https://wseas.com/journals/articles.php?id=6979
Shepherd D.A.& Williams T.A. (2023). Diferent response paths to organizational resilience. Small Business Economics. 61:23–58. https://doi.org/10.1007/s11187-022-00689-4
Shtal, T.Proskurnina, N.Savytska, N.Mykhailova, M. & Bubenets, I. (2023). Analysis of the Vectors of Digital Transformation of Retail Trade in Ukraine: Determination Methodology and Trends. Economic Affairs, 68 (Special Issue), 939-945. Retrieved June 4, 2024, from https://ndpublisher.in/admin/issues/EAv68n2sz16.pdf
Southwick, F. S., Martini, B. L., Charney, D. S., & Southwick, S. M. (2017). Leadership and resilience. Leadership today: Practices for personal and professional performance, 315-333
Walker, B. (2020). Resilience: what it is and is not. Ecology and Society 25(2):11. https://doi.org/10.5751/ES-11647-250211
Walker, B., Holling, C. S., Carpenter, S. R., & Kinzig, A. P. (2004). Resilience, adaptability and transformability in social-ecological systems. Ecology and Society, 9(2), 5. https://doi.org/10.5751/ES-00650-090205
WEF (2022). Brende B., Sternfels B. Resilience for sustainable, inclusive growth. World Economic Forum and McKinsey & Company. Retrieved June 4, 2024, from https://www.weforum.org/publications/resilience-for-sustainable-inclusive-growth/
Williams, A., Whiteman, G., & Kennedy, S. (2021). Cross-scale systemic resilience: Implications for organization studies. Business & Society, 60(1), 95–124. https://doi.org/10.1177/0007650319825870
Williams, C., You, J. J., & Joshua, K. (2020). Small-business resilience in a remote tourist destination: exploring close relationship capabilities on the island of St Helena. Journal of Sustainable Tourism, 28(7): 937–955.
You, J. J. (2022). Climate Feedback to Business Ecosystems: Extreme Event (s) and Disruption (s). RISE Talk. Retrieved June 4, 2024, from https://www.jacquelineyou.com/post/climate-feedback-to-business-ecosystems-extreme-event-and-disruption.
You, J. J. (2023). An Overview of Organizational Resilience in Research and Strategy: Implications for the Future of Work. AIB Insights, 23(3). https://doi.org/10.46697/001c.77387.