Understanding organizational resilience in a platform-based sharing business: The role of absorptive capacity

•Building resilience for platform-based sharing businesses is crucial.•Using a processual approach, this study identifies three cycled resilience stages: anticipation of changes, minimization of vulnerability & exploitation of shared resources, and winners take all.•Absorptive capacity facilitat...

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Published in:Journal of business research Vol. 141; pp. 85 - 99
Main Authors: Yuan, Ruizhi, Luo, Jun, Liu, Martin J., Yu, Jiang
Format: Journal Article
Language:English
Published: Elsevier Inc 01.03.2022
Subjects:
Absorptive capacity
Adaptive cycle
Organizational resilience
Platform-based sharing business
Sharing economy
Organizational resilience
Adaptive cycle
Absorptive capacity
Platform-based sharing business
Sharing economy
ISSN:0148-2963
Online Access:Get full text
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Abstract •Building resilience for platform-based sharing businesses is crucial.•Using a processual approach, this study identifies three cycled resilience stages: anticipation of changes, minimization of vulnerability & exploitation of shared resources, and winners take all.•Absorptive capacity facilitates organizational resilience.•The three stages of organizational resilience mechanism follow an adaptive cycle. Increasingly, platform-based sharing business models are celebrated by new ventures. They are positive toward the potential profit margin, which is considered higher than that of incumbent competitors. However, these models are creating unique challenges, such as limited assets and sustainability restrictions, that traditional organizations are unlikely to face. Thus, building resilience against threatened disruptions should be addressed to solve these challenges. Nonetheless, to date, there is limited systematic scholarly inquiry into how organizational resilience in platform-based sharing business is achieved. This study uses a case study method to explore the resilience mechanism of platform-based sharing economy ventures by emphasizing the role of absorptive capacity. Findings demonstrate that continuous absorptive capacity facilitates three cycled resilience stages: anticipation of changes, minimization of vulnerability and exploitation of shared resources, and winners take all. This paper extends understandings of the mechanism of resilience, and sheds light on the management of platform-based sharing business.
AbstractList •Building resilience for platform-based sharing businesses is crucial.•Using a processual approach, this study identifies three cycled resilience stages: anticipation of changes, minimization of vulnerability & exploitation of shared resources, and winners take all.•Absorptive capacity facilitates organizational resilience.•The three stages of organizational resilience mechanism follow an adaptive cycle. Increasingly, platform-based sharing business models are celebrated by new ventures. They are positive toward the potential profit margin, which is considered higher than that of incumbent competitors. However, these models are creating unique challenges, such as limited assets and sustainability restrictions, that traditional organizations are unlikely to face. Thus, building resilience against threatened disruptions should be addressed to solve these challenges. Nonetheless, to date, there is limited systematic scholarly inquiry into how organizational resilience in platform-based sharing business is achieved. This study uses a case study method to explore the resilience mechanism of platform-based sharing economy ventures by emphasizing the role of absorptive capacity. Findings demonstrate that continuous absorptive capacity facilitates three cycled resilience stages: anticipation of changes, minimization of vulnerability and exploitation of shared resources, and winners take all. This paper extends understandings of the mechanism of resilience, and sheds light on the management of platform-based sharing business.
Author Liu, Martin J.
Luo, Jun
Yuan, Ruizhi
Yu, Jiang
Author_xml – sequence: 1
  givenname: Ruizhi
  surname: Yuan
  fullname: Yuan, Ruizhi
  email: russa.yuan@nottingham.edu.cn
  organization: Nottingham University Business School China, University of Nottingham, Ningbo, China
– sequence: 2
  givenname: Jun
  surname: Luo
  fullname: Luo, Jun
  email: maria.luo@nottingham.edu.cn
  organization: Nottingham University Business School China, University of Nottingham, Ningbo, China
– sequence: 3
  givenname: Martin J.
  surname: Liu
  fullname: Liu, Martin J.
  email: martin.liu@nottingham.edu.cn
  organization: Nottingham University Business School China, University of Nottingham, Ningbo, China
– sequence: 4
  givenname: Jiang
  surname: Yu
  fullname: Yu, Jiang
  email: yujiang@casisd.cn
  organization: Institutes of Science and Development, Chinese Academy of Sciences (CAS), School of Public Policy and Management, University of Chinese Academy of Science (UCAS), China
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Keywords Organizational resilience
Adaptive cycle
Absorptive capacity
Platform-based sharing business
Sharing economy
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Snippet •Building resilience for platform-based sharing businesses is crucial.•Using a processual approach, this study identifies three cycled resilience stages:...
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SubjectTerms Absorptive capacity
Adaptive cycle
Organizational resilience
Platform-based sharing business
Sharing economy
Title Understanding organizational resilience in a platform-based sharing business: The role of absorptive capacity
URI https://dx.doi.org/10.1016/j.jbusres.2021.11.012
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