How to measure organizational resilience? Validating a simplified model

Santos, Alã Y. P.; Spers, Renata G.

doi:10.1590/1678-6971/eRAMD230007.en

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Special Issue • RAM, Rev. Adm. Mackenzie 24 (6) • 2023 • https://doi.org/10.1590/1678-6971/eRAMD230007.en copy

How to measure organizational resilience? Validating a simplified model

Authorship SCIMAGO INSTITUTIONS RANKINGS

Abstract

Purpose:

This study sought to analyze the elements that compose the resilience of organizations when facing a disruptive event, using as context the crisis caused by Covid-19.

Originality/value:

The study of organizational resilience helps us to theorize, more accurately, organizational adjustment and adaptation in increasingly complex and difficult-to-understand environments. However, although their research has shown promise, its concept still needs more independent attention and empirical validation. In this sense, this paper contributes to a holistic view with a consistent definition of the term through a quantitatively validated model since most of the empirical studies found in the literature are qualitative in nature.

Design/methodology/approach:

A survey was applied to test a model for measuring organizational resilience, through an exploratory factor analysis, in addition to the use of simple descriptive statistics. Data collection occurred between November 9 and December 23, 2021, through an electronic form with 41 respondents (companies).

Findings:

The tested model showed a high level of reliability (McDonald’s ω of 0.955) and can be applied within organizations to measure their resilience. The tested model comprises 12 items: unity of purpose; stress testing plans; strategic planning; proactive posture; breaking silos; leveraged knowledge; internal resources; effective partnerships; innovation and creativity; decision-making; staff engagement; and leadership.

Keywords
organizational resilience; crisis; measurement; survey; exploratory factor analysis

1st order variables	2nd order variables	Assertives
Leadership and culture	Leadership	Managers provide good management and decision-making in times of crisis, as well as continuous evaluation of strategies and work programs concerning organizational goals.
	Staff engagement	Employees are empowered and use their skills to solve problems. There is engagement and involvement by staff who understand the link between their work, the organization’s resilience, and its long-term success.
	Decision-making	The organization operates with a decision-making process that keeps pace with the internal and external environment changes through leaders who support their teams to have the power and freedom to make decisions within their purview.
	Innovation and creativity	The organization can build innovative and creative solutions to problems, processes, and products; employees are encouraged and rewarded for using their knowledge in innovative ways to solve problems.
Networks and relationships	Effective partnerships	The organization clearly views the relationships and resources it may need from other organizations during a crisis and plans and manages itself to ensure that access.
	Internal resources	The organization mobilizes and manages the physical, human, and procedural resources needed to ensure its ability to operate during regular business and can provide the extra capacity required during a crisis.
	Leveraging knowledge	Organization-critical information is stored in multiple formats and locations, and staff can access expert opinions whenever needed. Roles are shared, and the team is trained so that someone is always available to perform critical functions.
	Breaking silos	The organization is concerned with minimizing social, cultural, and behavioral barriers, usually manifested as communication barriers, creating scrappy, disconnected, and harmful working methods.
Change ready	Proactive posture	The organization proactively identifies and manages vulnerabilities, sees change as something positive, and develops adaptive capacity, as it seeks growth opportunities during adversity situations and does not consider them a problem.
Change ready	Strategic planning	The organization develops and evaluates vulnerability management plans and strategies concerning the business environment and its stakeholders.
Change ready	Stress testing plans	The organization relies on staff participation in simulations or scenarios designed to practice response arrangements and validate plans before they are needed in an actual situation.
Change ready	Unit of purpose	The organization is mainly aware of its post-crisis priorities at all organizational levels and knows the minimum requirements for its operation.

	KMO
Overall	0.858
Leadership	0.948
Staff engagement	0.841
Decision-making	0.925
Innovation and creativity	0.784
Effective partnerships	0.775
Internal resources	0.917
Leveraging knowledge	0.899
Breaking silos	0.935
Proactive posture	0.823
Strategic planning	0.858
Stress testing plans	0.742
Unit of purpose	0.892

Factor	Eigenvalue
1	7.6933
2	0.4822
3	0.3145
4	0.2311
5	0.0583
6	0.0364
7	-0.0641
8	-0.1222
9	-0.1467
10	-0.2219
11	-0.2450
12	-0.3220

	Factor	Singularity
	1	Singularity
Decision-making	0.904	0.183
Proactive posture	0.866	0.250
Innovation and creativity	0.811	0.343
Staff engagement	0.810	0.344
Effective partnerships	0.802	0.357
Internal resources	0.802	0.357
Leveraging knowledge	0.801	0.358
Breaking silos	0.796	0.367
Unit of purpose	0.792	0.373
Leadership	0.765	0.415
Strategic planning	0.725	0.474
Stress testing plans	0.718	0.485

	If you remove the item McDonald’s ω
Leadership	0.960
Staff engagement	0.959
Decision-making	0.956
Innovation and creativity	0.959
Effective partnerships	0.959
Internal resources	0.959
Leveraging knowledge	0.959
Breaking silos	0.959
Proactive posture	0.957
Strategic planning	0.960
Stress testing plans	0.961
Unit of purpose	0.959

Editora Mackenzie; Universidade Presbiteriana Mackenzie Rua da Consolação, 896, Edifício Rev. Modesto Carvalhosa, Térreo - Coordenação da RAM, Consolação - São Paulo - SP - Brasil - cep 01302-907 - São Paulo - SP - Brazil
E-mail: revista.adm@mackenzie.br

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[1] Authors’ notes

Alã Y. P. Santos is now an alumnus from the Faculty of Economics, Administration, Accounting and Actuarial Science of University of São Paulo (Universidade de São Paulo - USP); Renata G. Spers is now general director of the Future Studies Program (Profuturo) and professor at the Faculty of Economics, Administration, Accounting and Actuarial Science of USP.