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Benefits of Building Organizational Resilience: The Case of Climate Change

Julia Hillmann 1,†, Anne Bergmann 1,† and Edeltraud Guenther 1,2,*
Chair of Business Administration, esp. Sustainability Management and Environmental Accounting, Faculty of Business and Economics, Technische Universität Dresden, 01062 Dresden, Germany
Institute for Integrated Management of Material Fluxes and of Resources (UNU-FLORES), United Nations University, 01067 Dresden, Germany
These authors contributed equally to this work.
For correspondence.
Academic Editor: Hannu Schadewitz
Highlights of Sustainability, 2022, 1(4), 233–252.
Received: 12 March 2022    Accepted: 30 November 2022    Published: 6 December 2022
This paper investigates the time-dependent effects of building organizational resilience. So far, empirical research only finds evidence that organizational resilience provides benefits in the long term. For the short and medium term, the link remains unclear. On the one hand, literature indicates that building organizational resilience is costly. On the other hand, actions to build organizational resilience are perceived by investors, which should provide immediate positive effects for companies. This study investigates these two assumptions in the climate change context. We apply multiple regression analysis to study the relationship between resilience capabilities and different measures of financial performance. For market value and financial volatility, our findings indicate that building organizational resilience provides immediate benefits. For the total stock return index, we find only benefits that materialize with a time lag. We find no evidence at all that building resilience capabilities is related to costs in terms of lower accounting-based financial performance. Overall findings indicate that building organizational resilience is advantageous as it prepares an organization to face the challenges of climate change and, at the same time, provides financial benefits.
Copyright © 2022 Hillmann et al. This article is distributed under the terms of the Creative Commons Attribution License (CC BY 4.0), which permits unrestricted use and distribution provided that the original work is properly cited.
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Julia Hillmann thanks the Dresden Leibniz Graduate School (Leibniz Institute of Ecological Urban and Regional Development, Dresden, Germany) for having received a scholarship. Anne Bergmann thanks the Foundation of German Business for having received a PhD-scholarship.
Cite this Article
Hillmann, J., Bergmann, A., & Guenther, E. (2022). Benefits of Building Organizational Resilience: The Case of Climate Change. Highlights of Sustainability, 1(4), 233–252.
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