Operational resilience, disruption, and efficiency: Conceptual and empirical analyses

Abstract

This research develops the notion of operational resilience and investigates its relationship with operational efficiency under differing conditions of operational disruption. Operational resilience is conceptualized as a multi-dimensional construct, consisting of two theoretically distinct components (i.e., disruption absorption and recoverability), which are argued to have unique effects on operational efficiency under varying operational disruption conditions. The study’s hypotheses are empirically tested on primary data from a sample of 259 firms in a sub-Saharan African economy. Using structural equation modeling as an analytical tool, the study finds that both disruption absorption and recoverability have positive effects on operational efficiency. Additionally, the study finds that while the effect of disruption absorption on operational efficiency is stronger under conditions of high operational disruption, the effect of recoverability on operational efficiency is stronger under conditions of low operational disruption. A major implication of these findings is that the nature of operational resilience and the disruption circumstances under which it is deployed shape its efficiency value, thus advancing knowledge on the nuances associated with how and when operational resilience influences operational efficiency.