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Abstract

Firms must continually adapt themselves to survive and outperform competition during rapidly changing environments, both predictable and unpredictable. The dynamic capabilities theory provides a framework for firms to renew and adapt their organizational competencies and capabilities to achieve congruence with the changing market environment. Research has shown that this leads to sustained competitive advantage and superior firm performance. However, resilience during a disruptive event requires the firms to intentionally deviate from their patterned capability-building strategies to respond differentially to turn a challenging environment into a growth opportunity. The study proposes a comprehensive framework that integrates dynamic capabilities and organizational resilience theories with practical examples and empirically examines the resilience phenomenon from the data collected from 204 mid-to-large, established firms. The results show strong evidence that firms with robust strategic sensing, timely decision-making, and change implementation processes in typical business environments have a greater resilience-building meta-capability to achieve counter-trend growth during disruption. In addition, the study investigates the role of the business environment, social capital, and digital maturity. The results show that while digital maturity strengthens the relationship between strategic dynamic capabilities processes and organizational resilience, environmental complexity dampens the relationship. These findings and the proposed framework contribute to the theory and provide useful insights to practitioners.

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