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    When Being Large Is Not an Advantage: How Innovation Impacts the Sustainability of Firm Performance in Natural Resource Industries
    (2022)
    SEVIL ESTEBAN, ANGEL  
    ;
    Alfonso Cruz
    ;
    Tomas Reyes
    ;
    Roberto Vassolo
    <jats:p>This paper provides an in-depth study of how incremental innovation, a ubiquitous factor, affects the sustainability of performance of small- and large-sized firms differently. Specifically, this work examines the sustainability of firm growth in natural resource industries. In these industries, innovation is mainly based on processes in the form of incremental changes, and the adoption of innovations has significant sunk costs. We argue that, before incremental process innovation, firm performance is directly proportional to firm size. However, in the presence of incremental innovation events, firm performance is inversely proportional to firm size since smaller firms pose higher strategic flexibility and can adopt innovations faster. Our empirical findings highlight the relevance of incremental innovation as an inflection point of firm performance, creating a competitive opportunity window for small firms and a sustainability threat for large firms.</jats:p>
      2Scopus© Citations 6
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    New Strategies to Explain Organizational Resilience on the Firms: A Cross-Countries Configurations Approach
    (2022)
    Jorge Heredia
    ;
    Cathy Rubiños
    ;
    William Vega
    ;
    Walter Heredia
    ;
    Alejandro Flores
    Organizations need to develop their resilience to foster future success to survive complex environments. This research conducts a comparative analysis to understand firms’ strategies in a “black swan” event. We use the “strategy tripod” to operationalize resilience theory and explain the configurations or pathways that lead to high organizational resilience in a crisis context. The data correspond to 1936 firms drawn from the “Enterprise Survey 2020 for Innovation and Entrepreneurship in China (ESIEC)”, and to 66 Central American firms drawn from the “World Bank 2020 Enterprise Surveys” are also analyzed. The methodological approach fuzzy set qualitative comparative analysis (fsQCA) is applied. We discuss and analyze the strategies of companies in this “new normal”; our results establish that in the case of emerging economies, organizational innovation seems to be a necessary condition for becoming an organizational resilience to a black swan crisis (finding from both cases). We also found that labor flexibility and emotional intelligence for the case of firms from China, and adequate control of the turbulence environment for the cases of Central America, were also necessary conditions for each region. We further argue that digitalization depends on access to government support for its success. China reinforces its strategies in an intensification of human resources flexibility. In addition, they are better prepared for the “black swan” crisis, allowing them to adapt quickly and generate business model innovation to mitigate the effects of the pandemic in this “new normal.” In contrast, Central America needs rapid organization for organizational resilience.
    Scopus© Citations 43  1