From Organizational Resilience Capability to Firm Performance: A Time‐Lagged Investigation

ABSTRACT An organizational resilience capability is essential for firms to adapt in an ever‐changing world characterized by diverse crises and adversities. However, the mechanisms and contingencies needed to harness and channel organizational resilience capability remain uncertain. This article argues that this resilience capability, proactively developed in calmer times, only becomes apparent in a crisis, but its effectiveness relies on additional organizational capabilities around innovation and human resources. Using data from a sample of large Taiwanese firms collected in two waves during and after a crisis, we show how incremental and radical innovative capabilities mediate the relationship between a proactively developed organizational resilience capability and firm performance. Furthermore, we demonstrate the role of strategic human resource management practices in fostering and regulating this relationship and the functioning of innovative capabilities. Based on these findings, we provide implications for theory and practice.