Title: The impact of environmental turbulence on business sustainability through organisational resilience and dynamic capabilities

Authors: Mohammad Hamsal; Mohammad Ichsan; Hendro Wicaksono

Addresses: Management Program, Binus Business School Doctor of Research in Management, Bina Nusantara University, Jakarta, Indonesia ' Management Program, Binus Business School Undergraduate Program, Bina Nusantara University, Jakarta, Indonesia ' School of Business, Social, and Decision Sciences, Constructor University Bremen, Campus Ring 1, 28759 Bremen, Germany

Abstract: This paper investigates how the telecom sector's organisational resilience in Indonesia responds to environmental turbulence and how it affects business sustainability during the COVID-19 pandemic. An integrated conceptual framework is developed and empirically tested using survey data from 158 telecommunication companies and analysed using partial least square structural equation modelling. This study reveals that environmental turbulence significantly and positively influences dynamic capabilities and organisational resilience. Based on the path analysis result, the relationship between environmental turbulence and business sustainability is fully mediated by both dynamic capabilities and organisational resilience. The study has expanded the determinants of organisational resilience in the context of a pandemic as part of environmental turbulence. This study finally shows that dynamic capabilities and organisational resilience are key determinants to business sustainability in the turbulent business environment such as the COVID-19 pandemic to telecom companies. Many lessons can be learned by the telecom companies due to this pandemic situation including business model alignment as a consequence of responding to environmental turbulences.

Keywords: business sustainability; COVID-19; dynamic capabilities; environmental turbulence; organisational resilience; pandemic.

DOI: 10.1504/IJBE.2023.133906

International Journal of Business Environment, 2023 Vol.14 No.4, pp.417 - 439

Received: 18 Apr 2022
Accepted: 14 Nov 2022

Published online: 05 Oct 2023 *

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