Corporate Resilience Out of the COVID-19 Pandemic

Abstract

More than one year after the COVID-19 pandemic was officially declared, the profit performance among large companies worldwide has been bifurcating between 1/3 of companies bouncing forward with higher profit trajectory as per before the crisis while the other firms are continuing to suffer a profit shortfall. Such asymmetry in performance in part reflects the large economic shock of the pandemic that takes time to be absorbed, but the probable main cause, we find in this research, is that large companies have been operating at significant gaps to the resilience frontier. The most important dynamic capabilities to support corporate resilience include higher agility, exercise of disruptive innovations, investment in sustainability practices, as well as active play in business ecosystems