An Integrative Framework of the Theories of Organizational Resilience, Dynamic Capabilities, and Institutional Strategy

Purpose: This paper constructs an integrative model, which is a convergence of organisational resilience, dynamic capabilities, and institutional strategy theories to investigate the ways in which startups adapt, survive, and expand amidst unstable post-pandemic conditions. It explores how digital business model adoption (DBM), dynamic capabilities (DC), and eco maturity influence the resilience, growth, and survival of the firms. Design/Methodology/Approach: A mixed-methods research was used. The quantitative data were gathered in the form of structured surveys among 1,042 startups in Europe and Southeast Asia based on the technological, retail, and service industries. Probit regression models were used to examine the survival, whereas generalized linear and OLS regressions examined the growth and resilience. The synergies of DBM and DC were tested in a mediation model. Results: Dynamic capabilities have a positive effects on survival, growth and resilience whereas digital business models have a strong positive effect on resilience and survival and a weak positive effect on growth. The combination of the two leads to enhanced resilience effects. Ecosystem maturity only contributes greatly to survival and not growth or resilience. Growth and resilience are user type-dependent (business model type, e-commerce, platform, hybrid) whereas structural firm factors (size, age) do not have significant influence. Implications/Originality/Value: The results indicate the significance of establishing a combination of dynamic capabilities and flexible business models to promote resilience in dynamic markets. The policymakers are advised to promote capacity building, innovation centres and ecosystem cooperation in order to enable startups to navigate volatility in a strategically manner.