Long-term Development Perspectives of Resilient Companies

Resilience, as a characteristic of a business organization to prepare, adapt, withstand and survive economic distress periods is essential for a continuous operation and also contributes to a balanced macroeconomic state of regions. It is not evident whether being resilient once or several times during the lifetime of a business organization in which aspect can contribute to long-term survival and success. In this study annual revenue information - gathered from more than 26,000 Hungarian companies from processing industry - is utilized in order to construct an empirical resilience metric and to investigate long-term behaviour of companies that had successfully withstood turbulent economic periods. Based on matched-pair analysis our results showed that resilient organizations despite being successful in the short-run statistically tend to lag behind in terms of performance in the long-run.