Does Exposure to a Traumatic Event Make Organizations Resilient?

ABSTRACT: Why do some organizations bounce-back from traumatic events more quickly than others? While the research on organizations offers extensive insights on recovery from economic or technological shocks, there is limited understanding of how organizations recover from life-threatening events such as terrorist attacks. In this study, we build on the research on resilience and argue that organizational recovery from a traumatic event is informed by the perception of threat. Higher perception of threat increases inter-organizational collaboration and the care associated with the deployment of slack as well as to learning. We tested our arguments with a sample of US and non-US firms before and after the 9/11 terrorist attacks and found that, due to spatial proximity, US firms' higher perception of

SUBMITTER: Mithani MA 

PROVIDER: S-EPMC7445149 | biostudies-literature | 2020 Aug

REPOSITORIES: biostudies-literature