Technological capabilities, resilience capabilities and organisational effectiveness

Previous research has defined resilience as a desirable characteristic for an organization and its members to possess when circumstances adversely change. Resilience is analysed through different perspectives as organizational responses to external threats, organizational reliability, or employee strengths. However, the role of resilience in enhancing organisational effectiveness is not fully understood. Grounded in organisational ambidexterity, the current research tests the value of resilience capabilities developed through specific Human Resource Practices (HRPs) in the context of ever changing market conditions. This paper argues that as well as technological capabilities, HRPs that build resilience within an organisation are needed to successfully implement technological change. Resilience capabilities are a mediating factor between technological capabilities and organisational effectiveness, whilst environment dynamism and competitive intensity are moderators of this relationship. Using a primary sample of 205 manufacturing firms, a model is presented and tested using Structural Equation Modelling. The results reinforce the importance of HRPs in building resilience which helps firms to continuously adjust to change and subsequently enhance their organisational effectiveness.