Corporate resilience and its effect on firm performance
Project Description
Corporate resilience has emerged in recent years as a key topic in management research. Despite its high relevance, the concept remains conceptually and empirically ambiguous, as resilience is described variously as a capacity, a process, or an outcome. Existing measurement approaches, such as VOLARE or the model proposed by Ortiz-de-Mandojana & Bansal (2016), have provided important impulses but have thus far proven unconvincing in practice, leaving open essential requirements for comparability and applicability. The proposed project, therefore, aims to develop a novel, reliable, and valid resilience measure that systematically captures the multidimensionality of the construct. In doing so, it will strengthen the theoretical foundation and provide a basis for robust empirical research, while at the same time equipping companies and investors with a practical instrument to use resilience as a strategic indicator and to measure and compare their capacity to withstand crises in a sustainable way.
Relevance to Liechtenstein
Research on corporate resilience helps companies in a small, closely interconnected, yet internationally oriented economic area such as Liechtenstein to better respond to external pressures and structural dependencies. By developing reliable measurement approaches, regional firms gain a solid foundation to realistically assess and strategically strengthen their resilience. This benefits not only the stability of individual businesses but also the reliability of regional value creation and supply chains, creating tangible added value for Liechtenstein and the surrounding region.
Scientific, Economic and Societal Impact
Corporate resilience is essential for maintaining successful business practices, yet reliable quantitative methods to systematically capture it are still lacking. The development of new measurement approaches aims to make this previously vague concept clearer and more comprehensible. This will enable companies to better identify where they are vulnerable, and which areas should be strengthened. In practice, such measurability offers the opportunity to deliberately integrate resilience-enhancing structures and processes into decisions and workflows. The FFF project thus supports the long-term stability and competitiveness of companies on a transparent, empirical basis.
