How organizational resilience affects firm growth: the perspective from organizational strategy

Purpose This study investigates how organizational resilience (OR) might affect firm growth, the mediating effect of mergers and acquisitions (M&As) strategy and divestitures strategy, and the moderating effect of environmental uncertainty. Design/methodology/approach This study establishes a moderated mediation model and verifies the model using data of listed Chinese manufacturing companies from 2012 to 2022. Findings The results disclose that OR can indeed enhance firm growth. The enhanced firm growth can be achieved by promoting M&As strategy and inhibiting divestitures strategy. Environmental uncertainty positively moderates the positive correlation of OR on firm growth through the mediating effect of M&As strategy and divestitures strategy. Originality/value Drawing on conservation of resources (COR) theory, this paper examines OR and firm growth. These findings provide guidelines for enterprises aiming to achieve long-term growth by paying attention to the shaping of enterprise’s endogenous ability, making relevant strategies adjustments under highly volatile environments.