Beuren 2021
Beuren 2021
Beuren 2021
https://www.emerald.com/insight/1741-0401.htm
business performance
Ilse Maria Beuren
Post-Graduate Accounting Program, Universidade Federal de Santa Catarina,
Florianopolis, Brazil Received 18 March 2021
Revised 15 July 2021
Vanderlei dos Santos Accepted 9 August 2021
Abstract
Purpose – This paper aims to analyze the effects of organizational resilience on job satisfaction and business
performance in companies that have undergone corporate reorganizations.
Design/methodology/approach – A survey was carried out on a sample of 102 executives and managers
from Brazilian companies that underwent corporate reorganization. The structural equation modeling (SEM)
technique was used to test the hypotheses.
Findings – The results indicate that organizational resilience influences business performance (in the
dimensions of economy-financial, customers and processes/learning) and job satisfaction (in the dimensions of
financial and personal benefits). However, the relations between job satisfaction and business performance
were partial, indicating that satisfaction can affect performance through other variables.
Research limitations/implications – The main study implication lies on the empirical immersion
regarding the effects of active organizational resilience on multi-faceted business performance, to the detriment
of only the financial view and on job satisfaction.
Practical implications – The distinct effects of resilience on business performance and job satisfaction
provide managers with insight into how to allocate resources, in order to benefit the interests of both employer
and employee.
Originality/value – This is one of the first studies to provide empirical evidence of the effects of active
organizational resilience on multi-dimensional business performance. The results provide new insights into
this relationship and may clarify divergent results found in the literature. It also provides evidence of the effects
of active organizational resilience on job satisfaction in companies that have undergone corporate
reorganizations, events that are supposed to require resilient skills.
Keywords Organizational resilience, Resilience capability, Job satisfaction, Business performance,
Corporate reorganization
Paper type Research paper
1. Introduction
The term resilience is used in various areas of knowledge and refers to an element’s capacity
and ability to return to a stable state after an interruption (Bhamra et al., 2011). In the
organizational domain, it refers to the organization’s ability to face unexpected turbulences
and events in advance, due to strategic awareness and operational management associated
with internal and external shocks (Annarelli and Nonino, 2016). From an active perspective,
organizational resilience is understood as the company’s ability to absorb complexities and
emerge from a challenging situation with a greater repertoire of actions that is stronger than
International Journal of
Productivity and Performance
This paper has benefited from the helpful comments of anonymous reviewers. Financial support (Bolsa Management
PQ) from the Brazilian National Council for Scientific and Technological Development (Conselho © Emerald Publishing Limited
1741-0401
Nacional de Desenvolvimento Cientıfico e Tecnologico - CNPq) is gratefully acknowledged. DOI 10.1108/IJPPM-03-2021-0158
IJPPM it was before the disturbing event (Lengnick-Hall et al., 2011). Therefore, it is a desirable
feature of the organization and its members in order to tackle various types of adversities
(Linnenluecke, 2017; Beuren and Santos, 2019).
The literature recommends that the resilience capability influences organizational
performance. It is argued that resilient companies outperform non-resilient companies, since
organizational resilience promotes effective responses to environmental change; supports the
development of various types of organizational capabilities (Lengnick-Hall et al., 2011) and
allows organizations to manage disruptive challenges and thrive in times of crisis (Lee et al.,
2013). However, there are studies that have not found a direct relation to performance (e.g.
Hallak et al., 2018) in some of them resilience affected performance through other variables,
such as product innovation (Akg€ un and Keskin, 2014) and managers’ self-efficacy (Hallak
et al., 2018), and others found a direct relationship (Li et al., 2017; Yang and Hsu, 2018). In these
studies, performance was portrayed in a unidimensional way, where economic-financial
performance has prevailed (Acquaah et al., 2011; Akg€ un and Keskin, 2014; Li et al., 2017),
except Yang and Hsu (2018), which focused on operational performance. Yet, the literature
recognizes that performance is a multi-dimensional concept, showing financial and non-
financial dimensions (Bisbe and Otley, 2004; Lopez-Nicolas and Merono-Cerdan, 2011).
The literature also highlights that the capacity for organizational resilience influences
individual attitudes and behaviors (Lengnick-Hall et al., 2011; Annarelli and Nonino, 2016;
Linnenluecke, 2017), such as job satisfaction. Nevertheless, surveys (e.g. Jung and Yoon, 2015;
Meneghel et al., 2016) examining the effects of resilience on job satisfaction have focused on
individual resilience. Yet, collective perceptions and the organizational environment can influence
individual job attitudes (Meneghel et al., 2016). Varshney and Varshney (2017) investigated
resilience and performance at the individual level but considered resilience as a personality trait.
In view of the research gaps observed, this study analyzes the effects of organizational
resilience on job satisfaction (in the dimensions of financial and personal benefits) and business
performance (in the dimensions of economic-financial, customers and processes/learning) in
companies that have undergone corporate reorganizations. Corporate reorganization requires
adaptation, so that all those involved can overcome the discomfort resulting from change and
legitimize the new ties of operation, control and command (Koerniadi et al., 2015). In order to
overcome it and resume its normal operations, the company needs to create and increase
organizational resilience capabilities. Thus, a theoretical model was designed and tested by
means of structural equations, which was based on a survey carried out with managers from
Brazilian companies that underwent some corporate reorganization process.
The study contributes to the literature mainly in three ways. First, it presents new
evidence on the relationship of organizational resilience with job satisfaction and business
performance, which has shown conflicting results in the literature. Second, although previous
research postulated the effect of resilience on performance, they ignored its multi-dimensional
concept. Thus, this research expands the understanding of the effects of organizational
resilience capacity on business performance, considering performance beyond the financial
perspective. The study results provide new insights into this relationship and may clarify the
divergent results in the literature. Third, the study investigates the effects of organizational
resilience on job satisfaction, whereas previous research has focused on individual resilience.
Although job satisfaction reflects an assessment of individual experiences, it is likely to be
affected by the environment where people work (Meneghel et al., 2016). Thus, this research
provides clues about the extent to which organizational resilience affects managers’ job
satisfaction, which, in turn, is reflected in organizational results.
From a practical viewpoint, research can help companies to design policies and strategies
to develop resilience, to achieve greater job satisfaction and greater performance in the
dimensions of economic-financial, customers and processes/learning. More specifically, the
research presents insights in its field of investigation, considering companies that have gone
through corporate reorganization processes. Previous research on resilience and performance Effects of
considered the context of luxury restaurants (Hallak et al., 2018), the product innovation organizational
process (Akg€ un and Keskin, 2014), supply chains (Li et al., 2017) and scenarios of economic
recession (Lampel et al., 2014). In cases of corporate reorganization, it is normal to have wear
resilience
and tear by those involved, renegotiations, conferences, agreements, implementation of new
controls, training, hiring/dismissals, among other aspects that involve changes (Koerniadi
et al., 2015), which require developing of active organizational resilience.
The next section provides a literature review on organizational resilience and its links to
multi-dimensional business performance and multi-faceted job satisfaction in order to
support the research hypotheses. In section 3, the study method is specified, which implies a
description of the measures used and data collection. Section 4 presents the empirical
research results. Section 5 discusses the results. Finally, section 6 brings the conclusions,
implications and opportunities for further research.
Job Satisfaction
H2
Organizational
Resilience
H3
H1
Figure 1.
Theoretical model and Business
research hypotheses Performance
3. Methods and procedures Effects of
3.1 Sample selection and data collection organizational
A survey was conducted with managers of the companies listed on the stock exchange Brasil,
Bolsa, Balc~ao (B3), selected for making the management report and explanatory notes
resilience
available to the public, which are documents presumed to contain information on corporate
reorganizations (acquisition, merger or split), events considered to analyze resilience. Out of
the 737 listed companies, financial institutions were initially excluded due to their
peculiarities and, consequently, differences in accounting information. For the remaining
419 companies, it was verified whether there was any corporate reorganization process
within the period from 2014 to 2016, and 92 companies were found. The managers of these
companies were identified via the network of professional profiles LinkedIn.
The filter in a LinkedIn Premium account came from these terms as follows: (1) general
director, executive director (chief executive officer [CEO]); (2) chief financial officer (chief
financial officer [CFO]); (3) managers responsible for controllership (controllers) and (4)
managers from other organizational areas. It is worth noticing that respondents were not part
of the researcher’s LinkedIn profile and did not even know them. After the managers accepted
the invitations to join the researcher’s social media, the link to the research instrument was
forwarded. Respondents were also assured of the anonymity and confidentiality of their
responses. Among the 1,813 invitations sent on the network LinkedIn, 910 were accepted, but
only 484 people viewed the questionnaire available on the platform QuestionPro and only 105
answered the questionnaire. As three respondents did not authorize the use of their data, the
final sample consisted in 102 valid responses.
The demographic profile shows that most respondents were men (98%), the average age
was 45 years (SD 9.79), and the average length of time working in the company was
approximately 8 years (SD 8.70). Among the positions or functions in the company, those of
CEO (33%), controllers (25%) and CFO (12%) stood out. Regarding education, 16.7% have an
undergraduate degree, 58.8% have an MBA, 19.6% have a Master’s degree and 4.9% have a
PhD. The average length of time the respondents occupy these positions in the organization is
approximately five years (SD 6.93). As for the type of corporate reorganization that took place
in the company, 41.2% of respondents reported acquisitions, 27.4% incorporations, 16.7%
mergers and 14.7% splits.
A t-test for independent samples was performed to check the non-response bias, which did
not show significant differences between the initial and late respondents for all constructs in
this study (p values ranged from 0.079 to 0.423, single-tailed test).
4. Results
To analyze data and test the hypotheses, the structural equation modeling (SEM) technique
was applied, estimated through PLS. A partial least squares-structural equation modeling
(PLS-SEM) model is usually analyzed in two sequential steps: (1) measurement model and (2)
structural model (Hair et al., 2016). Measurement model adequacy was assessed in terms of
reliability (individual and composite) and validity (convergent and discriminant) of measures
in the constructs (Hair et al., 2016).
The factor loads of each variable were examined to assess the individual reliability of
items (Appendix). Most items had factorial loads above 0.70 in their respective constructs.
Only five items had loads marginally below 0.70 but above 0.60. Standardized loads must be
at least 0.70 (Hair et al., 2016), but lower loads are acceptable if other indicators of a construct
have higher loads (Chin, 1998). In this research, the five items with loads below 0.70 and above
0.60 belong to different constructs and other loads of these constructs exhibit higher numbers
(Barclay et al., 1995).
Average variance extracted (AVE), compound reliability (CR) and Cronbach’s alpha of all
constructs had values above 0.50, 0.70 and 0.70, respectively (Appendix), something which
indicates convergent validity and internal consistency in the model (Hair et al., 2016). The
constructs also met the criteria proposed by Fornell and Larcker (1981) for discriminant
validity, which is guaranteed if the square root of a construct’s AVE is greater than the
correlations with other constructs in the research model (Fornell and Larcker, 1981). All the
square roots of the AVE in each latent variable are greater than the respective correlations
between the latent variables (see Table 1), which demonstrates satisfactory discriminant
validity. Discriminant validity was also assessed through the criterion proposed by Chin
(1998), in which the values of factor loads were higher in latent variables than in others,
validating the inclusion of all latent variables in the analysis.
Constructs 1 2 3 4 5 6
5. Discussion of results
The research results indicate that organizational resilience directly affects business
performance in all its dimensions. The structural coefficient of economic-financial
performance (0.288) was small, with a lower explanatory power (R2 0.216) than the other
dimensions analyzed. The performance of processes/learning showed a high explanatory
power (R2 0.539) and its coefficient ranged from moderate to strong (0.628). This suggests that
the capacity for organizational resilience first affects performance in terms of processes/
learning, followed by customers and, finally, economic-financial performance. It is
noteworthy that in corporate restructuring there may be changes in the company’s
physical structure, in its production process, in product distribution and marketing, in
redistribution of functions and positions and in operations’ centralization of controls.
The association of organizational resilience with the performance of processes/learning is
supported by the argument that organizational resilience includes new skills and expands the
behavioral repertoires (Lengnick-Hall et al., 2011), encourages creativity and the search for
innovative business solutions (Hallak et al., 2018), in addition to reducing the time needed to
identify, respond and solve problems faced in intercompany relationships, for instance, in the
supply chain (Yang and Hsu, 2018). Thus, organizations respond quickly to the needs of their
customers and increase their value through agility and robustness (Acquaah et al., 2011), with
an impact on economic-financial performance.
Path to
Satisfaction with financial Personal Economic-financial Customer Process/Learning
Path from benefits satisfaction performance performance performance
Organizational resilience 0.411*** (4.201) 0.749*** (16.541) 0.288** (2.189) 0.387*** (2.769) 0.628*** (6.698)
Satisfaction with financial – – 0.123 (1.455) 0.154 (1.505) 0.010 (0.184)
benefits
Personal satisfaction – – 0.262* (1.880) 0.253* (1.809) 0.141 (1.461)
R2 0.169 0.562 0.216 0.293 0.539
Predictive relevance (Q2) 0.122 0.314 0.178 0.144 0.300
Effect size (F2) 0.413 0.426 0.752 0.429 0.450
Note(s): N 5 102. ***p < 0.01, **p < 0.05 and *p < 0.10. T-value in parentheses
organizational
resilience
Effects of
evaluation
Path coefficients and
Table 2.
structural model
IJPPM These results differ from the studies by Akg€ un and Keskin (2014) and Hallak et al. (2018),
who did not observe direct relationships but analyzed a single performance perspective. In
the study by Akg€ un and Keskin (2014), resilience affected performance through product
innovation, while by Hallak et al. (2018) through the self-efficacy of managers; but in both, the
performance was portrayed in a unidimensional way, i.e. as economic-financial performance.
Integrating various performance perspectives can bring new assumptions about and insights
into the relationship between organizational resilience and performance as demonstrated in
this research. It is also argued that resilience is a long-term strategic initiative that changes
the way a company operates by aligning the links between functional and competitive
strategies (Acquaah et al., 2011). According to Kwak et al. (2018), the resilience capability may
not generate an instant effect of competitive advantage, but in the long run.
In line with what was observed by Linnenluecke (2017), the results indicate that
organizational resilience influences job satisfaction, specifically the personal aspect, which
includes satisfaction with work conditions, joy due to the interest aroused by the tasks, with
the opportunities offered, as well as aspects of interpersonal relationships. Organizational
resilience involves preparing social and intellectual capital, expanding knowledge, skills and
technical capacities (Lampel et al., 2014), which can explain the positive and significant
relations to job satisfaction. The relationship between organizational resilience and job
satisfaction (personal satisfaction and satisfaction with financial benefits) indicates that
these companies can face turbulence, in addition to offering growth and social integration
opportunities to their managers (Lengnick-Hall and Beck, 2005). Resilient organizations are
characterized by workplaces conducive to seeking information, admitting mistakes,
experimenting and offering critical feedback (Lengnick-Hall and Beck, 2005). This can
provide the basis for the persons’ positive assessments of their work experiences, leaving
them more satisfied.
However, no significant associations were observed between satisfaction with financial
benefits and business performance, only of personal satisfaction with economic-financial
performance and customer performance, at the significance level of 0.10. The positive effect
between personal satisfaction and economic-financial performance and customer
performance may be explained by people’s alignment with the organizational
environment, showing positive results for both (Lampel et al., 2014; Gul et al., 2018). On the
other hand, direct non-significant relationships between job satisfaction and business
performance may result from the multi-facets of organizational performance (Bisbe and
Otley, 2004). Bakotic (2016) argues that the relationship between job satisfaction and
organizational performance is more complex, due to internal and external factors, when
compared to the relationship between job satisfaction and individual performance. Hakos and
Bousinakis (2010) warn that satisfaction affects productivity indirectly, a feeling that affects
the dedication to the organization. The effect of job satisfaction can be indirect, for instance,
fulfilling tasks (Varshney and Varshney, 2017), organizational citizenship behaviors (Jung
and Yoon, 2015) and reduced absenteeism (Ogbonnaya and Valizade, 2018).
It is inferred from the results of this research that the way how organizations deal with
turbulence and discontinuities and adapt to new risky environments is reflected in job
satisfaction and business performance. Thus, organizations must be proactive in the face of
adversity and turbulence (Lengnick-Hall et al., 2011). To do this, they need to develop new
skills and create opportunities before disturbing events occur (Annarelli and Nonino, 2016),
instead of reacting to current problems (Akg€ un and Keskin, 2014). From this perspective,
resilience is linked to the company’s ability to absorb complexities and emerge stronger in
another challenging situation, with a greater repertoire of actions in face of a disturbing event
(Lengnick-Hall et al., 2011). This requires restructuring processes, leveraging efficiency in the
use of resources and taking measures to guide learning and growth, with a view to creating
value for customers and increasing economic-financial performance.
6. Conclusions Effects of
The study has taken the premise that organizational resilience is a predictor of job organizational
satisfaction (personal and financial benefits) and business performance, in the dimensions
economic-financial, customers and processes/learning. In a complementary way, interactions
resilience
between facets of job satisfaction and the three dimensions of business performance were
analyzed. The results revealed that organizational resilience is positively associated with job
satisfaction and business performance in all dimensions under analysis, emphasizing
personal satisfaction and processes/learning performance.
These results indicate that organizations skilled in dealing with adverse circumstances
and capable of adapting in terms of creating new solutions due to the variability of the
business environment tend to foster the development of people’s capabilities, encourage the
sharing of knowledge and use their resources efficiently. This favors the ability to conquer
new slices of market share, from the retention and acquisition of new customers and obtain
greater economic-financial return. These findings are consistent with the understanding of
Lampel et al. (2014) that the development of organizational resilience capacity involves
adaptive processes that promote the updating of competences and simultaneously restore
efficiency. Thus, problems are seen as opportunities, and they bring greater satisfaction to its
members, with reflections on business performance.
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Appendix Effects of
organizational
Constructs and assertions Mean SD Loadings resilience
Organizational resilience (based on Lengnick-Hall et al., 2011; Akg€
un and Keskin, 2014)
(AVE 5 0.638, CR 5 0.977, Cronbach’s alpha 5 0.975)
First group–organizational/relational actions (statements 1 to 15 and 20 to 25)
(AVE 5 0.702, CR 5 0.980, Cronbach’s alpha 5 0.978)
Cognitive skills and behavioral traits–first group
Our company . . .
Has a strong sense of purpose, core values and a genuine vision 5.18 1.452 0.802
Promotes positive and constructive conceptual orientation 4.94 1.377 0.875
Makes deliberate use of language (words, images and stories) 4.80 1.350 0.786
Encourages a constructive sense, which allows managers and employees to interpret and give 4.74 1.400 0.900
meaning to unprecedented events and conditions
Puts high value on pluralism and individual differences and invests heavily in human capital 4.57 1.499 0.854
Uses formal and informal mechanisms for social interaction and minimize rules and procedures 4.57 1.493 0.861
Values contributions that favor the collective mentality among people in the organization, such 4.55 1.565 0.896
as experience, opportunism and creation
Encourages the use of decision-making by people within the organization, despite uncertainty 4.61 1.562 0.862
Provides a favorable environment for questioning fundamental assumptions in order to find 4.71 1.506 0.870
new and appropriate solutions
The characteristics of resourcefulness, skill, practicality and agility of people are valued for 4.64 1.566 0.904
them to get involved in creativity of the unconventional responses conception, yet robust, to
unprecedented challenges
Instigates behavioral preparation so that people can deliberately unlearn obsolete information 4.30 1.420 0.856
or dysfunctional heuristic
Provides the development of new skills, with a view to the ability to follow a different course of 4.39 1.504 0.879
action than the norm
Develops useful and practical habits, especially repetitive and those learned from the routines 4.62 1.428 0.845
that provide the first answer to any unexpected threat
Provides an environment that encourages the combination of originality and initiative to 4.46 1.419 0.893
capitalize on an eventual immediate situation
Encourages you to take action and make investments before they are needed, to ensure that the 4.25 1.563 0.767
company can benefit from situations that arise
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