Does a competitive business strategy make firms more resilient? Evidence from the COVID‑19 pandemic

Ahsan, Tanveer; Gull, Ammar; Boubaker, Sabri; Manita, Riadh

doi:https://doi.org/10.59876/a-6bdp-jh81

Ahsan, T., Al-Gamrh, B., & Mirza, S. S. (2022). Economic policy uncertainty and sustainable financial growth: Does business strategy matter? Finance Research Letters, 46(B), 102381. doi: https://doi.org/10.1016/j.frl.2021.102381

10.1016/j.frl.2021.102381 Google Scholar

Ahsan, T., & Qureshi, M. A. (2021). The nexus between policy uncertainty, sustainability disclosure, and firm performance. Applied Economics, 53(4), 441-453. doi: https://doi.org/10.1080/00036846.2020.1808178

10.1080/00036846.2020.1808178 Google Scholar

Al-Awadhi, A. M., Alsaifi, K., Al-Awadhi, A., & Alhammadi, S. (2020). Death and contagious infectious diseases: Impact of the COVID‑19 virus on stock market returns. Journal of Behavioral and Experimental Finance, 27, 100326. doi: https://doi.org/10.1016/j.jbef.2020.100326

10.1016/j.jbef.2020.100326 Google Scholar

Ali, M., Alam, N., & Rizvi, S. A. R. (2020). Coronavirus (COVID‑19) — An epidemic or pandemic for financial markets. Journal of Behavioral and Experimental Finance, 27, 100341. doi: https://doi.org/10.1016/j.jbef.2020.100341

10.1016/j.jbef.2020.100341 Google Scholar

Anwar, J., & Hasnu, S. (2016). Business strategy and firm performance: a multi-industry analysis. Journal of Strategy and Management, 9(3), 361‑382. doi: https://doi.org/10.1108/JSMA-09-2015-0071

10.1108/JSMA-09-2015-0071 Google Scholar

Arslan-Ayaydin, Ö., Florackis, C., & Ozkan, A. (2014). Financial flexibility, corporate investment, and performance: evidence from financial crises. Review of Quantitative Finance and Accounting, 42(2), 211-250. doi: https://doi.org/10.1007/s11156-012-0340-x

10.1007/s11156-012-0340-x Google Scholar

Baltagi, B. (2008). Econometric analysis of panel data. The Atrium, Southern Gate, Chichester, West Sussex PO19 8SQ, England: John Wiley & Sons.

Google Scholar

Bentley, K. A., Omer, T. C., & Sharp, N. Y. (2013). Business strategy, financial reporting irregularities, and audit effort. Contemporary Accounting Research, 30(2), 780-817. doi: https://doi.org/10.1111/j.1911-3846.2012.01174.x

10.1111/j.1911-3846.2012.01174.x Google Scholar

Bernanke, B. S. (1983). Irreversibility, uncertainty, and cyclical investment. The quarterly journal of economics, 98(1), 85-106. doi: https://doi.org/10.2307/1885568

10.2307/1885568 Google Scholar

Bhagat, S., & Bolton, B. (2019). Corporate governance and firm performance: The sequel. Journal of Corporate Finance, 58(5), 142-168. doi: https://doi.org/10.1016/j.jcorpfin.2019.04.006

10.1016/j.jcorpfin.2019.04.006 Google Scholar

Bhamra, R., Dani, S., & Burnard, K. (2011). Resilience: the concept, a literature review, and future directions. International Journal of Production Research, 49(18), 5375-5393. doi: https://doi.org/10.1080/00207543.2011.563826

10.1080/00207543.2011.563826 Google Scholar

Bin-Feng, C., Mirza, S. S., Ahsan, T., Gull, A. A., & Al-Gamrh, B. (2022). Institutional environment, the ultimate controller’s characteristics, and CSR disclosure in China. Managerial and Decision Economics, 43(5), 1515-1527. doi: https://doi.org/10.1002/mde.3471

10.1002/mde.3471 Google Scholar

Bryce, C., Ring, P., Ashby, S., & Wardman, J. K. (2022). Resilience in the face of uncertainty: Early lessons from the COVID‑19 pandemic. In COVID‑19 (pp. 48-55): Routledge.

Google Scholar

Caggiano, G., Castelnuovo, E., & Kima, R. (2020). The global effects of COVID‑19-induced uncertainty. Economics Letters, 194(September), 109392. doi: https://doi.org/10.1016/j.econlet.2020.109392

10.1016/j.econlet.2020.109392 Google Scholar

Chang, H., Liu, S., & Mashruwala, R. (2021). Customer Bargaining Power, Strategic Fit, and Supplier Performance. Production and Operations Management. doi: https://doi.org/10.1111/poms.13627

10.1111/poms.13627 Google Scholar

Cheema-Fox, A., LaPerla, B. R., Wang, H., & Serafeim, G. (2021). Corporate resilience and response to COVID‑19. Journal of Applied Corporate Finance, 33(2), 24-40. doi: https://doi.org/10.1111/jacf.12457

10.1111/jacf.12457 Google Scholar

Chen, M.-H., Jang, S., & Kim, W. G. (2007). The impact of the SARS outbreak on Taiwanese hotel stock performance: An event-study approach. International Journal of Hospitality Management, 26(1), 200-212. doi: https://doi.org/10.1016/j.ijhm.2005.11.004

10.1016/j.ijhm.2005.11.004 Google Scholar

Chowdhury, E. K., Dhar, B. K., & Stasi, A. (2022). Volatility of the US stock market and business strategy during COVID‑19. Business Strategy & Development, 5(4), 350-360. doi: https://doi.org/10.1002/bsd2.203

10.1002/bsd2.203 Google Scholar

Corbet, S., Hou, G., Hu, Y., Larkin, C. J., & Oxley, L. (2020). Any Port in a Storm: Cryptocurrency Safe-Havens during the COVID‑19 Pandemic. Economics Letters, 195(October), 109441. doi: https://doi.org/10.1016/j.econlet.2020.109441

10.1016/j.econlet.2020.109441 Google Scholar

Farooq, M. U., Su, K., Boubaker, S., & Gull, A. A. (2022). Does gender promote ethical and risk-averse behavior among CEOs? An illustration through related-party transactions. Finance Research Letters, 47(B), 102730. doi: https://doi.org/10.1016/j.frl.2022.102730

10.1016/j.frl.2022.102730 Google Scholar

Feng, C. B., Mirza, S. S., Ahsan, T., & Gull, A. A. (2022). The impact of financial flexibility and directors’ academic experience on corporate R&D investments: a quantile regression approach. Applied Economics, 54(17), 1974-1988. doi: https://doi.org/10.1080/00036846.2021.1983145

10.1080/00036846.2021.1983145 Google Scholar

Florez-Jimenez, M. P., Lleo, A., Danvila-del-Valle, I., & Sánchez-Marín, G. (2024). Corporate sustainability, organizational resilience and corporate purpose: a triple concept for achieving long-term prosperity. Management Decision, 62(7), 2189-2213. doi: https://doi.org/10.1108/MD-06-2023-0938

10.1108/MD-06-2023-0938 Google Scholar

Georgieva, K. (2020). Beyond the Crisis. Finance & Development, 57(2).

Google Scholar

Gertler, M., & Gilchrist, S. (1994). Monetary policy, business cycles, and the behavior of small manufacturing firms. The Quarterly Journal of Economics, 109(2), 309-340. doi: https://doi.org/10.2307/3440134

10.2307/3440134 Google Scholar

Goodell, J. W. (2020). COVID‑19 and finance: Agendas for future research. Finance Research Letters, 35(4), 101512. doi: https://doi.org/10.1016/j.frl.2020.101512

10.1016/j.frl.2020.101512 Google Scholar

Gulen, H., & Ion, M. (2015). Policy uncertainty and corporate investment. The Review of Financial Studies, 29(3), 523-564. doi: https://doi.org/10.1093/rfs/hhv050

10.1093/rfs/hhv050 Google Scholar

Gull, A. A., Ahsan, T., Qureshi, M. A., & Mushtaq, R. (2023). Striving to safeguard shareholders or maintain sustainability in periods of high uncertainty: A multi-country evidence. Technological Forecasting and Social Change, 188(March), 122183. doi: https://doi.org/10.1016/j.techfore.2022.122183

10.1016/j.techfore.2022.122183 Google Scholar

Haque, M. R., Choi, B., Lee, D., & Wright, S. (2022). Insider vs. outsider CEO and firm performance: Evidence from the COVID‑19 pandemic. Finance Research Letters, 47(Part A), 102609. doi: https://doi.org/10.1016/j.frl.2021.102609

10.1016/j.frl.2021.102609 Google Scholar

He, F., Ma, Y., & Zhang, X. (2020). How does economic policy uncertainty affect corporate Innovation? Evidence from China-listed companies. International Review of Economics & Finance, 67, 225-239. doi: https://doi.org/10.1016/j.iref.2020.01.006

10.1016/j.iref.2020.01.006 Google Scholar

Hu, S., & Zhang, Y. (2021). COVID‑19 pandemic and firm performance: Cross-country evidence. International Review of Economics & Finance, 74(July), 365-372. doi: https://doi.org/10.1016/j.iref.2021.03.016

10.1016/j.iref.2021.03.016 Google Scholar

Ichev, R., & Marinč, M. (2018). Stock prices and geographic proximity of information: Evidence from the Ebola outbreak. International Review of Financial Analysis, 56, 153-166. doi: https://doi.org/10.1016/j.irfa.2017.12.004

10.1016/j.irfa.2017.12.004 Google Scholar

Iftikhar, A., Purvis, L., & Giannoccaro, I. (2021). A meta-analytical review of antecedents and outcomes of firm resilience. Journal of Business Research, 135(October), 408-425. doi: https://doi.org/10.1016/j.jbusres.2021.06.048

10.1016/j.jbusres.2021.06.048 Google Scholar

Jabbouri, I., & Almustafa, H. (2020). Corporate cash holdings, firm performance, and national governance: evidence from emerging markets. International Journal of Managerial Finance, 17(5), 783-801. doi: https://doi.org/10.1108/IJMF-07-2020-0342

10.1108/IJMF-07-2020-0342 Google Scholar

Jiang, F., & Kim, K. A. (2020). Corporate governance in China: A survey. Review of Finance, 24(4), 733-772. doi: https://doi.org/10.1093/rof/rfaa012

10.1093/rof/rfaa012 Google Scholar

Just, M., & Echaust, K. (2020). Stock market returns, volatility, correlation and liquidity during the COVID‑19 crisis: Evidence from the Markov switching approach. Finance Research Letters, 37(November), 101775. doi: https://doi.org/10.1016/j.frl.2020.101775

10.1016/j.frl.2020.101775 Google Scholar

Kaplan, R. S., & Norton, D. P. (2008). The execution premium: Linking strategy to operations for competitive advantage: Harvard Business Press.

Google Scholar

Ke, Y. (2022). The impact of COVID‑19 on firms’ cost of equity capital: Early evidence from US public firms. Finance Research Letters, 46(May), 102242. doi: https://doi.org/10.1016/j.frl.2021.102242

10.1016/j.frl.2021.102242 Google Scholar

Khan, H. u. R., Khidmat, W. B., & Awan, S. (2021). Board diversity, financial flexibility, and corporate innovation: evidence from China. Eurasian Business Review, 11(2), 303-326. doi: https://doi.org/10.1007/s40821-020-00171-9

10.1007/s40821-020-00171-9 Google Scholar

Knight, F. (1921). Risk, Uncertainty and Profit, Hart, Shaffner & Marx. In: Houghton Mifflin Company, Boston.

Google Scholar

Krolikowski, M., & Yuan, X. (2017). Friend or foe: Customer-supplier relationships and innovation. Journal of Business Research, 78(9), 53-68. doi: https://doi.org/10.1016/j.jbusres.2017.04.023

10.1016/j.jbusres.2017.04.023 Google Scholar

Li, L., Tong, Y., Wei, L., & Yang, S. (2022). Digital technology-enabled dynamic capabilities and their impacts on firm performance: evidence from the COVID‑19 pandemic. Information & Management, 59(8), 103689. doi: https://doi.org/10.1016/j.im.2022.103689

10.1016/j.im.2022.103689 Google Scholar

Liu, H., Yi, X., & Yin, L. (2021). The impact of operating flexibility on firms’ performance during the COVID‑19 outbreak: Evidence from China. Finance Research Letters, 38(January), 101808. doi: https://doi.org/10.1016/j.frl.2020.101808

10.1016/j.frl.2020.101808 Google Scholar

Ma, C.-A., & Jin, Y. (2016). What drives the relationship between financial flexibility and firm performance: Investment scale or investment efficiency? Evidence from China. Emerging Markets Finance and Trade, 52(9), 2043-2055. doi: https://doi.org/10.1080/1540496X.2015.1098036

10.1080/1540496X.2015.1098036 Google Scholar

Makkonen, H., Pohjola, M., Olkkonen, R., & Koponen, A. (2014). Dynamic capabilities and firm performance in a financial crisis. Journal of Business Research, 67(1), 2707-2719. doi: https://doi.org/10.1016/j.jbusres.2013.03.020

10.1016/j.jbusres.2013.03.020 Google Scholar

Maliszewska, M., Mattoo, A., & Mensbrugghe, D. v. d. (2020). The Potential Impact of COVID‑19 on GDP and Trade - A Preliminary Assessment. Policy Research Working Paper 9211, The World Bank, Washington, D.C. doi: http://documents.worldbank.org/curated/en/295991586526445673/pdf/The-Potential-Impact-of-COVID‑19-on-GDP-and-Trade-A-Preliminary-Assessment.pdf

10.1596/1813-9450-9211 Google Scholar

Maury, B. (2022). Strategic CSR and firm performance: the role of prospector and growth strategies. Journal of Economics and Business, 118, 106031. doi: https://doi.org/10.1016/j.jeconbus.2021.106031

10.1016/j.jeconbus.2021.106031 Google Scholar

Mirza, S. S., & Ahsan, T. (2020). Corporates’ strategic responses to economic policy uncertainty in China. Business Strategy and the Environment, 29(2), 375-389. doi: https://doi.org/10.1002/bse.2370

10.1002/bse.2370 Google Scholar

Mirza, S. S., Ahsan, T., Al-Gamrh, B., Majeed, M. A., & Muhammad, F. (2024). The impact of economic policy uncertainty on corporate innovation in China: the role of family ownership and political connections. Applied Economics, 1-20. doi: https://doi.org/10.1080/00036846.2023.2291414

10.1080/00036846.2023.2291414 Google Scholar

Montes, G. C., & Nogueira, F. d. S. L. (2021). Effects of economic policy uncertainty and political uncertainty on business confidence and investment. Journal of Economic Studies. doi: https://doi.org/10.1108/JES-12-2020-0582

10.1108/JES-12-2020-0582 Google Scholar

Nadeem, M., Gyapong, E., & Ahmed, A. (2020). Board gender diversity and environmental, social, and economic value creation: Does family ownership matter? Business Strategy and the Environment, 29(3), 1268-1284. doi: https://doi.org/10.1002/bse.2432

10.1002/bse.2432 Google Scholar

Narayan, P. K., Phan, D. H. B., & Liu, G. (2020). COVID‑19 lockdowns, stimulus packages, travel bans, and stock returns. Finance Research Letters, 101732. doi: https://doi.org/10.1016/j.frl.2020.101732

10.1016/j.frl.2020.101732 Google Scholar

Ortmann, R., Pelster, M., & Wengerek, S. T. (2020). COVID‑19 and investor behavior. Finance Research Letters. doi: https://doi.org/10.1016/j.frl.2020.101717

10.1016/j.frl.2020.101717 Google Scholar

Porter, M. E. (1980). Industry structure and competitive strategy: Keys to profitability. Financial Analysts Journal, 36(4), 30-41. doi: https://doi.org/10.2469/faj.v36.n4.30

10.2469/faj.v36.n4.30 Google Scholar

Ren, Z., Zhang, X., & Zhang, Z. (2021). New evidence on COVID‑19 and firm performance. Economic Analysis and Policy, 72(December), 213-225. doi: https://doi.org/10.1016/j.eap.2021.08.002

10.1016/j.eap.2021.08.002 Google Scholar

Rumelt, R. P., Schendel, D. E., & Teece, D. J. (1994). Fundamental Issues in Strategy. Cambridge, MA: Harvard Business School Press.

Google Scholar

Santos-Vijande, M. L., López-Sánchez, J. Á., & Trespalacios, J. A. (2012). How organizational learning affects a firm’s flexibility, competitive strategy, and performance. Journal of Business Research, 65(8), 1079-1089. doi: https://doi.org/10.1016/j.jbusres.2011.09.002

10.1016/j.jbusres.2011.09.002 Google Scholar

Shahab, Y., Gull, A. A., Rind, A. A., Ahsan, A., & Ahsan, T. (2022). Do corporate governance mechanisms curb the anti-environmental behavior of firms worldwide? An illustration through waste management. Journal of Environmental Management, 310(May), 114707. doi: https://doi.org/10.1016/j.jenvman.2022.114707

10.1016/j.jenvman.2022.114707 Google Scholar

Shapiro, C. (1989). The theory of business strategy. The RAND Journal of Economics, 20(1), 125-137. doi: https://doi.org/10.2307/2555656

10.2307/2555656 Google Scholar

Shen, H., Fu, M., Pan, H., Yu, Z., & Chen, Y. (2020). The impact of the COVID‑19 pandemic on firm performance. Emerging Markets Finance and Trade, 56(10), 2213-2230. doi: https://doi.org/10.1080/1540496X.2020.1785863

10.1080/1540496X.2020.1785863 Google Scholar

Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic Management Journal, 18(7), 509-533. doi: https://doi.org/10.1002/(SICI)1097-0266(199708)18: 7%3C509: : AID-SMJ882%3E3.0.CO;2-Z

Google Scholar

Thaher, Y. A., & Jaaron, A. A. (2022). The impact of sustainability strategic planning and management on the organizational sustainable performance: A developing-country perspective. Journal of Environmental Management, 305(1), 114381. doi: https://doi.org/10.1016/j.jenvman.2021.114381

10.1016/j.jenvman.2021.114381 Google Scholar

Trigeorgis, L., & Reuer, J. J. (2017). Real options theory in strategic management. Strategic Management Journal, 38(1), 42-63. doi: https://doi.org/10.1002/smj.2593

10.1002/smj.2593 Google Scholar

Van Der Vegt, G. S., Essens, P., Wahlström, M., & George, G. (2015). Managing risk and resilience. 58(4), 971-980. doi: https://doi.org/10.5465/amj.2015.4004

10.5465/amj.2015.4004 Google Scholar

Wang, Z., Upadhyay, A., & Kumar, A. (2023). A real options approach to growth opportunities and resilience aftermath of the COVID‑19 pandemic. Journal of Modelling in Management, 18(4), 1124-1152. doi: https://doi.org/10.1108/JM2-12-2021-0302

10.1108/JM2-12-2021-0302 Google Scholar

Wernerfelt, B. (1984). A Resource-based View of the Firm. Strategic Management Journal, 5, 171-180. doi: https://doi.org/10.1002/smj.4250050207

10.1002/smj.4250050207 Google Scholar

Wu, J. G., Kong, D., Wu, Y., & Zhang, J. (2020). When to Go Abroad: Economic Policy Uncertainty and Chinese Firms’ Overseas Investment. Accounting & Finance, 60(2), 1435-1470. doi: https://doi.org/10.1111/acfi.12474

10.1111/acfi.12474 Google Scholar

Xu, L. (2021). Stock Return and the COVID‑19 pandemic: Evidence from Canada and the US. Finance Research Letters, 38(January), 101872. doi: https://doi.org/10.1016/j.frl.2020.101872

10.1016/j.frl.2020.101872 Google Scholar

Zhang, X., Zou, M., Liu, W., & Zhang, Y. (2020). Does a firm’s supplier concentration affect its cash holding? Economic Modelling, 90(8), 527-535. doi: https://doi.org/10.1016/j.econmod.2020.01.025

10.1016/j.econmod.2020.01.025 Google Scholar

Abstract

Résumé

Resumen

Bibliography

Abstracts

Abstract

Résumé

Resumen

Appendices

Bibliography

Appendices

Appendices

Citation Tools

Cite this article

Export the record for this article