Business resilience of companies: theory and practice of adaptation to the external environment

Kobik Arthur
PhD student at the Department of Management, Poltava University of Economics and Trade, Poltava, Ukraine, E-mail:Ukrsplav.a@gmail.com, ORCID ID: https://orcid.org/0009-0005-3145-9791

Cite this article:

Kobik A. (2024) Business resilience of companies: theory and practice of adaptation to the external environment. Ed.: V.V. Kovalenko (ed.-in-ch.) and others [Biznes-rezylientnist pidpryiemstva: teoriia ta praktyka adaptatsii do zovnishnoho seredovyshcha; za red.: V.V. Kovalenko (gol. red.)], Scientific Bulletin of the Odesa National Economic University (ISSN 2313-4569), Odesa National Economics University, Odesa, No. 10 (323), pp. 7-13.

Abstract

The purpose of the article is to study the genesis of business resilience in today's turbulent and uncertain environment. To achieve the goal, the methods of comparison, analogy, historical, analysis and synthesis, tabular method were used. The article provides a critical analysis of the term "resilience" and "business resilience". The origins of the formation of such an economic phenomenon as business resilience are analyzed. The author's vision of types of resilience of the national economy and business resilience is formed. The practical significance of the study lies in improving the understanding of the relationship and interdependence of all types of resilience of the national economy and their impact on increasing business resilience. Resilience is a multifaceted concept that encompasses various areas of life and activity. The interconnectedness of all types of resilience is key to ensuring overall societal resilience. Applying a systemic approach to building resilience is critical, meaning that all aspects of resilience must be considered in a holistic manner, taking into account their interrelationships and mutual influences. Business resilience is not homogeneous and includes different types of resilience, such as psychological, organizational and operational, play an important role in increasing the level of business resilience. The practical value of business resilience research lies in the ability of enterprises to adapt to changes and challenges while maintaining their viability and competitiveness. This is especially true in times of war, when businesses face unforeseen circumstances such as infrastructure destruction, population displacement, and changes in logistics chains. In addition, the understanding of business resilience contributes to the development of government support programs that can be directed to the specific needs of enterprises in crisis conditions. This includes financial assistance, tax breaks, recovery grants and other measures that contribute to business stabilization and growth. Resilience research is also important for international partners and investors who can assess the risks and potential of Ukrainian enterprises in the context of war. This allows them to make informed decisions about investments and cooperation, which in turn contributes to the economic recovery of the country. Finally, the results of such studies can be used to educate and train entrepreneurs, providing them with the tools and knowledge to increase the resilience of their businesses in the face of uncertainty.

Keywords

resilience, business, business resilience, types of business resilience.

JEL classification: M100; M140; L210; D810; DOI: https://doi.org/10.32680/2409-9260-2024-10-323-7-13

UD classification: 658.8:005.52-044.347

References

1. Duchek S. (2020) Organizational resilience: a capability-based conceptualization. Business Research. 13. 215–246. Retrieved from https://link.springer.com/article/10.1007/s40685-019- 0085-7 (accessed 29 octobre 2024)
2. Maalouf, J., Chahine, L., Abi Aad, A., & Kertechian, K. S. (2024) Determinants of business resilience: Investigating the roles of business agility, digitalization, and environmental hostility during the COVID-19 pandemic. Journal of International Entrepreneurship. 09. 13-21 Retrieved from https://www.researchgate.net/publication/383849349_Determinants_of_business_ resilience_Investigating_the_roles_of_business_agility_digitalization_and_environmental_ hostility_during_the_COVID-19_pandemic (accessed 29 octobre 2024)
3. Buyl, T., Gehrig, T., Schreyögg, J., & Wieland, A. (2022) Resilience: A Critical Appraisal of the State of Research for Business and Society. Schmalenbach Journal of Business Research. 74. 453–463 Retrieved from https://link.springer.com/article/10.1007/s41471-022-00151-x (accessed 29 octobre 2024)
4. Sheffi, Y., & Rice, J. B. (2005) A Supply Chain View of the Resilient Enterprise. MIT Sloan Management Review. 47(1). 41-48. Retrieved from https://www.researchgate.net/ publication/255599289_A_Supply_Chain_View_of_the_Resilient_Enterprise (accessed 29 octobre 2024)
5. Haustova, V., Reshetnyak, O. (2023). Rezylʹyentnistʹ ekonomiky: sutnistʹ i vyklyky dlya Ukrayiny [Resilience of the economy: essence and challenges for Ukraine]. Biznes inform. 2023. 7. 30-41. Retrieved from http://jnas.nbuv.gov.ua/article/UJRN-0001438706 (accessed 29 octobre 2024) [Іn Ukrainian].
6. Hudima, T. S., Yershova, Yu.О., & Soshnykov, A. O. (2024). Business Resilience Through the Lens of Economically Hazardous Events: the Legal Landscape of Ukraine. Journal of the National Academy of Legal Sciences of Ukraine, 31(2), 187–206. Retrieved from https://visnyk.kh.ua/web/ uploads/pdf/31(2)_2024-187-206.pdf (accessed 29 octobre 2024)
7. Afuzova H. V., Naydʹonova H. O., Krotenko V. I. (2023) Rezylʹyentnistʹ yak chynnyk zberezhennya psykhichnoho zdorovʺya v umovakh voyennoho stanu [Resilience as a factor in maintaining mental health in martial law]. Habitus 53. 100–104. [Іn Ukrainian].
8. Lihonenko L.O.; Andriychuk V.A. (2023) Rezylʹyentnistʹ v ekonomichnomu konteksti: analiz svitovykh trendiv ta perspektyvy naukovykh doslidzhenʹ [Resilience in an economic context: an analysis of global trends and research perspectives]. Stratehiya ekonomichnoho rozvytku Ukrayiny. 52. 16–37. Retrieved from https://doi.org/doi: 10.33111/sedu.2023.52.016.037 (accessed 29 octobre 2024) [Іn Ukrainian].
9. Lozova O., Tymoshenko I. (2023) Proaktyvna povedinka pidpryyemstva v suchasnykh umovakh hospodaryuvannya [Proactive behavior of the enterprise in modern economic conditions]. Biznes Inform. 4. 155-160. Retrieved from https://doi.org/10.32983/2222-4459-2023-4-155-160 (accessed 29 octobre 2024) [Іn Ukrainian].
10. Grygorenko Z., Naydonova G. (2023) The concept of “resilence”: history of formation and approaches to dehinition. Public Administration and Law Review. 2023. 2. 76–88. Retrieved from https://doi.org/10.36690/2674-5216-2023-2-76-88. (accessed 29 octobre 2024)
11. Manual on Community-Based Mental Health and Psychosocial Support in Emergencies and Displacement: manual (2021). IOM. Geneva. 232. Retrieved from https://www.iom.int/ sites/g/files/tmzbdl486/files/mhpss/second-edition-manual-on-cb-mhpss-inemergencies-anddisplacement- 2021.pdf (accessed 29 octobre 2024)
12. De Geus Arie (1999) Living company: growth, learning and longevity in business paperback. UNKNO. 224
13. Datsenko A. (2023) COVID-19 i viyna zminyly IT-menedzhment. Tradytsiyni pidkhody do upravlinnya ne pratsyuyutʹ. Shcho mayutʹ robyty kerivnyky, rozpovidaye ekspert rynku Anna Datsenko. [COVID-19 and war changed IT management. Traditional approaches to management do not work. Market expert Anna Datsenko tells what managers] Zhurnal Forbes Ukraine Retrieved from https://forbes.ua/innovations/covid-19-ta-viyna-zminili-it-menedzhment-traditsiynizasobi-upravlinnya-ne-pratsyuyut-shcho-mayut-robiti-upravlintsi-rozpovidaeekspert-rinku-anna- -datsenko-05042023-12854 (accessed 29 octobre 2024). [Іn Ukrainian].
14. Savytsʹka N. L., Pakhucha E. V. (2024) Rynkova rezylʹyentnistʹ biznesu: teoretychnyy konstrukt [Market resilience of business: theoretical construct] Biznes Inform. 2. 244–257. Retrieved from https://doi.org/10.32983/2222-4459-2024-2-244-257 (accessed 29 octobre 2024). [Іn Ukrainian].
15. Building a Resilient Tomorrow: Concrete Actions for Global Leaders (2024) McKinsey & Company. Retrieved from https://www.mckinsey.com/~/media/mckinsey/business%20functions/ risk/our%20insights/building%20a%20resilient%20tomorrow%20concrete%20actions%20 for%20global%20leaders/wef_building_a_resilient_tomorrow_2024.pdf?shouldIndex=false (accessed 29 octobre 2024)