Measuring Organizational Resilience as a Performance Outcome

Interest in investigating organizational resilience has surged due to the increasing number of unexpected shocks and disruptions in the global economy. It is more important than ever to have well defined ways of measuring organizational resilience as a precursor to understanding its antecedents. In this article, the authors discuss the assumptions (regarding choices of counterfactuals and time intervals) needed to operationalize organizational resilience as a performance outcome and identify the minimal set of variables that can be used to estimate the resilience of an organization. The authors highlight the importance of the choice of time window (rule-based vs. variable) and counterfactuals (absolute vs. relative) to measure resilience.