Organizational Resilience to Exogenous Shocks: The Role of Environmental Performance

Abstract

ABSTRACT This research examines the influence of environmental performance on organizational resilience during an exogenous shock. Drawing on the natural resource–based view, a sample of 3920 firms from 11 sectors and 19 countries is analyzed. This study employs OLS regressions and Cox proportional hazard models to test the effect of environmental performance on the severity of loss and time to recovery following an exogenous shock. The findings reveal that higher levels of environmental performance mitigate the severity of loss but prolong the time to recovery. These results provide important insights into how environmental performance shapes organizational resilience during exogenous shocks and highlight the need for further research to better understand the temporal dimension of its effects, specifically when and how environmental performance translates into resilience benefits.

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