The impact of network infrastructure on firm resilience: evidence from a quasi-natural experiment from the “Broadband China” strategy

Purpose This paper aims to reveal the pivotal role of network infrastructure in shaping resilience. Design/methodology/approach From the perspective of dynamic capabilities theory, a multi-period Difference-in-Difference (DID) model was constructed using the “Broadband China” strategy as a proxy for network infrastructure. This study examines the impact of network infrastructure on enterprise resilience from both internal and external dimensions. Findings The results demonstrate that network infrastructure substantially boosts enterprise resilience, a conclusion supported by various robustness tests. The mechanism of action shows that network infrastructure enhances enterprises’ crisis response capability and, consequently, their resilience through two pathways: facilitating enterprises’ digital transformation and reducing customer concentration. The heterogeneity analysis reveals that the impact of network infrastructure on enterprise resilience varies significantly. It is more pronounced in enterprises with higher industry competitiveness, bankruptcy risk, and high technology, as well as those with lower institutional investor ownership. It suggests substantial heterogeneity in network infrastructure’s effect on enterprise resilience. Finally, this paper delves further into the impact of enterprise resilience on performance, revealing a significant positive correlation between enterprise resilience and performance. Originality/value This paper reveals the pivotal role of network infrastructure in shaping resilience.