Understanding organizational resilience: A cross-country analysis of factors influencing organizational mortality

Authors

DOI:

https://doi.org/10.15549/jeecar.v11i5.1491

Keywords:

cross-country analysis, organizational mortality, organizational resilience, morphological factors, social factors, economic factors, organizational factors, organizational ecology

Abstract

This study delves into organizational resilience by investigating the factors contributing to organizational mortality, with a focus on the interplay between internal (endogenous) and external (exogenous) influences. Drawing on concepts from organizational ecology, the research seeks to provide a clearer understanding of how these factors impact the survival and adaptability of organizations. The study employs advanced techniques such as data mining, multiple linear regression, and Multivariate Adaptive Regression Splines (MARSplines) to analyze both stimulators and inhibitors of organizational mortality. The findings reveal that internal factors, particularly organizational size, significantly increase mortality risks. This research offers a holistic approach by integrating insights from organizational ecology, finance, and management, providing a comprehensive view of how various factors interact to influence organizational resilience. It highlights the importance of understanding the non-linear and dynamic relationships between these factors over time, offering valuable insights for managers and strategists who aim to strengthen organizational survival. While the findings offer important implications, further research is recommended to validate the results and deepen our understanding of organizational mortality and resilience dynamics.

Author Biographies

Hanna Shvindina, American University Kyiv, Ukraine

Dr. Hanna Shvindina is an Associate Professor at American University Kyiv. She received a Ph.D. in Environmental Economics and Natural Resources Protection at Sumy State University (2006) and a Doctor of Science in Economics and Management at the Enterprises at Sumy State University (2019). Dr. Hanna Shvindina is also a professor at Oleg Balatskyi's Department of Management at Sumy State University. She was a Post-Doc researcher (University of Montpellier, Purdue University) in "Business Studies and Management" and Fulbright Alumna (2018-2019) and won ERASMUS MUNDUS scholarships (2014, 2015).

Olha Kuzmenko, Sumy State University, Ukraine

Doctor of Economics, Professor, Head of the Economic Cybernetics Department, Sumy State University. 

 

Stanislav Kotenko, Sumy State University, Ukraine

Doctoral student at Oleg Balatskyi Department Management of Sumy State University, Ukraine; Current research interests include Competitiveness Evaluation, Bibliometric Analysis.

 

Svitlana Kolomiiets, Sumy State University, Ukraine

Phd, Associate professor, Department of Economic Cybernetics, Sumy State University, Ukraine

 

References

Aldrich, H. E., & Wiedenmayer, G. (1993). From Traits to Rates: An Ecological Perspective on Organizational Foundings. In book: Seminal Ideas for the Next Twenty-Five Years of Advances. Publisher: JAI Press, pp.145-195. https://doi.org/10.1108/S1074-754020190000021010 DOI: https://doi.org/10.1108/S1074-754020190000021010

Anderson, P., & Tushman, M. L. (2001). Organizational environments and industry exit: The effects of uncertainty, munificence and complexity. Industrial and Corporate Change, 10(3), 675-711. https://doi.org/10.1093/icc/10.3.675 DOI: https://doi.org/10.1093/icc/10.3.675

Audia, P. G., & Greve, H. R. (2006). Less likely to fail: Low performance, firm size, and factory expansion in the shipbuilding industry. Management Science, 52(1), 83-94. https://doi.org/10.1287/mnsc.1050.0446 DOI: https://doi.org/10.1287/mnsc.1050.0446

Baum, J. A., & Singh, J. V. (1994). Organizational niches and the dynamics of organizational mortality. American Journal of Sociology, 100(2), 346-380. https://doi.org/10.1086/230540 DOI: https://doi.org/10.1086/230540

Brunsman, K. J., & Sharfman, M. P. (1993, August). Strategic choices and niche movements: a probabilistic model of organizational selection and mortality. In Academy of Management Proceedings, 1993(1), 2-6. https://doi.org/10.5465/ambpp.1993.10315156 DOI: https://doi.org/10.5465/ambpp.1993.10315156

Carmeli, A., & Markman, G. D. (2011). Capture, governance, and resilience: Strategy implications from the history of Rome. Strategic Management Journal, 32(3), 322–341. https://doi.org/10.1002/smj.880 DOI: https://doi.org/10.1002/smj.880

Carley, K. M. (1997). Organizational adaptation. Annals of Operations Research, 75(0), 25-47. https://doi.org/10.1023/A:1018963630536 DOI: https://doi.org/10.1023/A:1018963630536

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. https://doi.org/10.1016/j.techfore.2020.120033 DOI: https://doi.org/10.1016/j.jbusres.2021.11.090

Duchek, S. (2020). Organizational resilience: a capability-based conceptualization. Business research, 13(1), 215-246. https://doi.org/10.1007/s40685-019-0085-7 DOI: https://doi.org/10.1007/s40685-019-0085-7

Eisenhardt, K. M., & Schoonhoven, C. B. (1990). Organizational growth: Linking founding team, strategy, environment, and growth among US semiconductor ventures, 1978-1988. Administrative Science Quarterly, 504-529. https://doi.org/10.2307/2393315 DOI: https://doi.org/10.2307/2393315

Flamholtz, E. G., & Aksehirli, Z. (2000). Organizational success and failure:: an empirical test of a holistic model. European Management Journal, 18(5), 488-498. https://doi.org/10.1016/S0263-2373(00)00038-4 DOI: https://doi.org/10.1016/S0263-2373(00)00038-4

Greve, H. R. (2011). Positional rigidity: Low performance and resource acquisition in large and small firms. Strategic Management Journal, 32(1), 103-114. https://doi.org/10.1002/smj.875 DOI: https://doi.org/10.1002/smj.875

Haarhaus, T., & Liening, A. (2020). Building dynamic capabilities to cope with environmental uncertainty: The role of strategic foresight. Technological Forecasting and Social Change, 155, 120033. https://doi.org/10.1016/j.techfore.2020.120033 DOI: https://doi.org/10.1016/j.techfore.2020.120033

Hannan, M. T. (1998). Rethinking age dependence in organizational mortality: Logical formalizations. American Journal of Sociology, 104(1), 126-164. https://doi.org/10.1086/210004 DOI: https://doi.org/10.1086/210004

Hannan, M. T., & Freeman, J. (1977). The population ecology of organizations. American Journal of Sociology, 82(5), 929-964. https://doi.org/10.1086/226424 DOI: https://doi.org/10.1086/226424

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 DOI: https://doi.org/10.1111/ijmr.12239

Linnenluecke, M. K. (2017). Resilience in business and management research: A review of influential publications and a research agenda. International Journal of Management Reviews, 19(1), 4–30. https://doi.org/10.1111/ijmr.12076 DOI: https://doi.org/10.1111/ijmr.12076

Kotenko, S., Shvindina, H., & Heiets, I. (2021). The impact of migration on the competitiveness of the region and industry development. In E3S Web of Conferences (Vol. 307, p. 02003). EDP Sciences. https://doi.org/10.1051/e3sconf/202130702003 DOI: https://doi.org/10.1051/e3sconf/202130702003

O'Reilly III, C. A., & Tushman, M. L. (2011). Organizational ambidexterity in action: How managers explore and exploit. California Management Review, 53(4), 5-22. https://doi.org/10.1525/cmr.2011.53.4. DOI: https://doi.org/10.1525/cmr.2011.53.4.5

Pfeffer, J., & Salancik, G. R. (2003). The external control of organizations: A resource dependence perspective. Stanford University Press.

Preisendörfer, P., & Voss, T. (1990). Organizational mortality of small firms: The effects of entrepreneurial age and human capital. Organization Studies, 11(1), 107-129. https://doi.org/10.1177/0170840690011001 DOI: https://doi.org/10.1177/017084069001100109

Thornhill, S., White, R. E., & Raynor, M. E. (2021) Risky business: How strategy relates to survival. The Canadian Journal of Administrative Sciences, 38, 245–256. https://doi.org/10.1002/cjas.1609 DOI: https://doi.org/10.1002/cjas.1609

Downloads

Published

2024-10-05

How to Cite

Shvindina, H., Kuzmenko, O., Kotenko, S., & Kolomiiets, S. (2024). Understanding organizational resilience: A cross-country analysis of factors influencing organizational mortality. Journal of Eastern European and Central Asian Research (JEECAR), 11(5), 850–870. https://doi.org/10.15549/jeecar.v11i5.1491