Organizational Resilience, Innovation and Firm Performance: Moderating Role of Social Ties ()
1. Introduction
The concept of organizational resilience has gained significant attention in the academic literature and business community due to its potential to help organizations adapt and respond to various disruptions (Hillmann & Guenther, 2021; Ponomarov & Holcomb, 2009) . In the African context, where businesses often face unique challenges such as political instability, economic volatility, and resource constraints, organizational resilience is particularly important for promoting business survival and sustainability (Skouloudis et al., 2020; Asongu & Odiambo, 2019) .
Simultaneously, innovation performance and firm performance are critical factors determining the success of African businesses (Adeyeye et al., 2019) . Innovation performance is particularly important in a rapidly changing business environment, where the ability to develop new products, services, and processes can give businesses a competitive edge (Otchia, 2020) . Firm performance, on the other hand, is a broad measure of a business’s overall success and is often linked to factors such as profitability, growth, and market share (Taouab & Issor, 2019) .
Despite the growing interest in organizational resilience and its impact on innovation and firm performance, there is a need to examine the role of social ties in moderating this relationship. Social ties, such as networks and relationships with customers, suppliers, and other stakeholders, are significant in facilitating organizational resilience (Ma & Zhang, 2022) . However, the extent to which social ties moderate the relationship between organizational resilience and innovation/firm performance in remains unclear, especially in VUCA business environments like Africa. To contribute to the discourse, the study addresses the following research questions: 1) How does organizational resilience influence innovation performance? 2) How does organizational resilience influence firm performance? 3) To what extent do social ties moderate the relationship between organizational resilience and innovation/firm performance? The rest of the study is outlined as follows; Section 2 presents the theoretical background and hypotheses of the study. Additionally, the conceptual model is discussed in this section; Section 3 presents the methodology and analytical paradigm; Section 4 discusses the findings and implications of the study and finally, the conclusion is presented in Section 5.
2. Literature Review
2.1. Organizational Resilience, Innovation and Firm Performance
Organizational resilience refers to the ability of an organization to withstand and adapt to changes, crises, and disruptions in the business environment. In recent years, there has been increasing attention to the role of organizational resilience in promoting innovation and improving firm performance. Organizational resilience has been found to have a positive impact on innovation in multiple studies. In their study of Australian firms, McGrath and MacMillan (2000) found that organizations with higher levels of resilience were more likely to engage in innovative activities, such as product development and R&D.
Several mechanisms have been proposed to explain the positive relationship between organizational resilience and innovation. One mechanism is the ability of resilient organizations to adapt to changes in the business environment. Organizations that are able to respond to changes in the market or technology are more likely to identify and pursue new opportunities for innovation. Another mechanism is the culture of innovation that is often associated with resilient organizations (Vakilzadeh & Haase, 2021) .
In addition to its impact on innovation, organizational resilience has also been found to be positively related to firm performance. A study by Teece (2014) found that resilient organizations were more likely to achieve long-term competitive advantage and sustained profitability. Similarly, a study by Weick and Sutcliffe (2006) found that resilient organizations were better able to weather financial crises and maintain high levels of performance.
Organizations that are more resilient are better able to hold onto crucial resources and capabilities, which enables them to sustain a competitive edge over time. The capacity of resilient organizations to establish and uphold solid connections with important stakeholders, including customers, suppliers, and employees, is another factor. Resilient organizations are better able to adapt to changes in the business environment and sustain high levels of performance over time by building strong and trustworthy relationships (Hillmann & Guenther, 2021; Saad et al., 2021) .
2.2. Social Ties, Innovation and Firm Performance
Social ties refer to the connections and relationships that exist between firms and other organizations, such as suppliers, customers, and competitors, as well as networks and clusters (Lechner & Dowling, 2003) . Social ties can enhance a firm’s access to external knowledge and resources, which can, in turn, promote innovation performance (Muller & Peres, 2019) . Research has shown that firms with stronger social ties with their suppliers and customers are more likely to have access to valuable information, knowledge, and resources that can support innovation activities (Deng et al., 2023) . Similarly, firms that are members of innovation networks or clusters are more likely to benefit from knowledge spillovers and other forms of knowledge exchange that can stimulate innovation (Lechner & Dowling, 2003) .
However, the impact of social ties on innovation performance may depend on the nature and strength of the ties. For instance, strong ties with a few key partners may be more beneficial for innovation than weaker ties with a larger number of partners (Saka-Helmhout et al., 2020; Öberg, 2019) . Similarly, ties with partners in diverse industries and knowledge domains may be more valuable for innovation than ties with partners in similar industries (Liu et al., 2017) .
Moreover, the impact of social ties on innovation performance may vary across different contexts. For example, the benefits of social ties for innovation may be greater in emerging economies, where firms may face greater resource constraints and a less developed innovation ecosystem (Adéchian et al., 2022) . Similarly, the impact of social ties on innovation performance may vary across different industries, depending on factors such as the level of competition and the nature of innovation activities (Bamwesigye & Hlaváčková, 2019) .
Social ties can enable firms to access information about industry trends, customer preferences, and new technologies, which can be valuable for improving their products or services and gaining a competitive advantage (Birley & Westhead, 1990) . Additionally, social ties with other organizations such as suppliers or customers can provide access to resources such as raw materials or funding (Tsai & Ghoshal, 1998) .
Social ties can also facilitate collaboration and knowledge sharing between firms, which can lead to improved performance. For example, partnerships between firms can allow for the sharing of resources, expertise, and knowledge, which can lead to increased efficiency and innovation (Powell et al., 1996) . Additionally, social ties can provide opportunities for firms to learn from each other and share best practices, which can lead to improved performance in areas such as marketing, production, or management (Hagedoorn, 1993) .
Trust and reputation associated with social ties and exchanges can also impact firm performance. Social ties can help to build trust between firms, which can be important for establishing long-term partnerships and collaborations (Dyer & Singh, 1998) . Additionally, social ties can contribute to a firm’s reputation, which can lead to increased customer loyalty and positive word-of-mouth recommendations (Glynn, 1996) .
2.3. Hypotheses Development
2.3.1. Organizational Resilience and Firm Performance
Organizational resilience refers to an organization’s ability to withstand and adapt to changes, disruptions, and crises in the business environment (Magnusson & Berggren, 2018) . The concept of resilience has been increasingly recognized as an important factor in determining firm performance, particularly in the context of dynamic and uncertain business environments (Teece, 2014) . Resilient organizations are better equipped to withstand and adapt to changes, disruptions, and crises in the business environment, enabling them to maintain long-term competitive advantage and sustained profitability.
To explain the favourable association between organizational resilience and firm performance, a number of mechanisms have been put forth. The capacity of resilient organizations to preserve a solid and stable organizational structure even in the face of disruption is one mechanism. Resilient organizations, according to Teece (2014) , are better able to hold onto crucial resources and capabilities, which enables them to sustain a competitive edge over time.
The capacity of resilient organisations to establish and uphold solid bonds with important stakeholders, including clients, partners, and employees, is another mechanism. Resilient organisations are better able to adapt to changes in the business environment and sustain high levels of performance over time by building strong and trustworthy relationships (Weick & Sutcliffe, 2006) . In addition to these mechanisms, research has also suggested that resilient organizations are more likely to engage in innovative activities, such as product development and R&D, leading to higher levels of innovation and firm performance (McGrath & MacMillan, 2000; Magnusson & Berggren, 2018) . In sum, organizational resilience is acknowledged to have a positive impact on the performance of enterprises in an uncertain business environment. Based on the above theory, hypothesis 1 is stated:
H1: Organizational Resilience has a positive impact on organizational performance.
2.3.2. Organizational Resilience and Innovation Performance
Resilience can enable firms to respond to environmental changes and develop new ideas, products, and processes that help to maintain or improve their competitive position. By fostering a culture of resilience, firms can promote risk-taking behaviour, experimentation, and learning, which are key drivers of innovation (Pisano, 2019) . This culture of resilience can be built through the development of dynamic capabilities, such as the ability to reconfigure resources and capabilities in response to changing circumstances (De Carvalho et al., 2016) .
In addition to the positive impact of organizational resilience on innovation performance, research has also suggested that the relationship between resilience and innovation can be moderated by certain factors. For example, the relationship may be stronger in firms that have high levels of entrepreneurial orientation, as these firms are more likely to embrace risk-taking behaviour and experimentation (Buliga et al., 2016) . Furthermore, the relationship may be stronger in firms that have strong collaborative relationships with their stakeholders, as these relationships can provide access to resources, knowledge, and expertise that are critical to innovation performance (Deng & Noorliza, 2023) . Consequently the impact of organizational resilience on firm innovation performance cannot be underestimated. Hypothesis 2 conceptualizes the positive impact of organizational resilience on the innovation performance of businesses.
H2: Organizational resilience has a positive impact on the innovation performance of firms.
2.4. The Moderating Role of Social Ties and Innovation Performance
Resilient organizations are better equipped to withstand and adapt to changes, disruptions, and crises in the business environment, which can enable them to maintain long-term competitive advantage and foster innovation. Social ties refer to the network of relationships that exist within and outside of an organization and can include relationships with customers, suppliers, partners, and other stakeholders.
Research has suggested that social ties can play a critical role in shaping the relationship between organizational resilience and innovation performance. Social ties can provide access to resources, knowledge, and expertise that are critical to innovation performance, such as information about customer needs, market trends, and emerging technologies (Wen et al., 2021) . In addition, social ties can enable organizations to leverage the resources and capabilities of their partners and stakeholders, which can facilitate innovation (Foerderer, 2020; Hao et al., 2020) .
However, the impact of social ties on the relationship between organizational resilience and innovation performance may depend on the nature of these ties. For example, strong and trust-based ties may facilitate knowledge sharing and collaboration, leading to higher levels of innovation performance. Conversely, weak ties may provide access to new and diverse information and perspectives, which can also foster innovation (Burt, 2004) . The nature and strength of times have a significant influence on the exchange of information and consequently mitigate the risk of exchange hazards. The relationship between organizational resilience and innovation performance is moderated by social ties. A firm that has strong ties in the business environment has access to slack resources and competence that can be channelled into boosting innovative performance and activities of organizations. Hypothesis 3 examined the extent to which social ties moderated the positive impact of organizational resilience on the innovation performance of firms.
H3: The positive relationship between organizational resilience and innovation performance is moderated by social ties.
2.5. Conceptual Framework
Source: Author, 2023.
2.6. Methodology
2.6.1. Participants
The study will involve a sample of firms in the hospitality industry in Ghana. Participants will be selected using a random sampling technique to ensure an adequate representation. The sample size is sorted from a list of enterprises provided by the Ghana Tourism Authority/Agency. The list contained enterprises operating in diverse sectors of the hospitality industry. Identified individuals or respondents were contacted for their permission to be included in the survey for the study.
2.6.2. Measures
Organizational resilience is measured using a validated questionnaire adapted from the Organizational Resilience Scale (ORS) (Williams et al., 2017) . The ORS measures organizational resilience across three dimensions: robustness, adaptability, and agility.
Innovation performance is measured using a composite index that combines subjective and objective measures of innovation. Subjective measures will be obtained through a survey of firm executives, using a validated questionnaire adapted from the Innovation Performance Index (IPI) (García-Sánchez et al., 2018) .
Firm Performance is measured using scales adapted from the study conducted by Awozum (2021) . Social ties are measured using a questionnaire adapted from the Social Network Index (SNI) (Berkman & Syme, 1979) . The SNI measures the frequency of contact and level of support provided by different types of social ties, including business partners, other entrepreneurs, colleagues, and community members.
2.7. Data Collection
Data will be collected using a combination of online surveys and in-person surveys. Firm executives are invited to participate in the study through email invitations and follow-up reminders. Survey responses will be collected using a secure online survey platform, and publicly available data will be obtained from patent databases and other sources.
The questionnaire is used to collect data for the study. A 7-point Likert scale is used to measure the measurement items. To ensure that the survey is free of omitted variable bias and common method bias, a number of measures have been put in place (Krishnan et al., 2006) . The questionnaire was distributed to respondents after a pilot study was used to assess its initial reliability and validity.
A total of 680 questionnaires were distributed between October 2022 and December 2022. The survey had a response rate of 70% translating into 476 answered questionnaires. However, after data cleaning and an initial data validation check—incomplete questionnaires and questionnaires with multiple answers to a question were excluded, remaining 450 completed questionnaires were used for further analysis.
3. Empirical Analysis
3.1. Profile of Respondents
In sum 450 completed questionnaires were used for empirical analysis—these include respondents from various sectors within the hospitality industry in Ghana. The findings indicate on average respondents have been working in the industry for a substantial number of years. In addition, organizations have been in operation for some years in some cases over two decades. These characteristics place respondents in a position to provide sufficient information about how organizations thrive under uncertain business environments. Table 1 presents a summary of the profile of respondents—gender, age, years of operation and experience of individuals.
3.2. Descriptive Statistics
The distribution and properties of the data are displayed in Table 2. The mean, standard deviation, and excess kurtosis are highlighted in this section. Along with the skewness of the data, the minimum and maximum data points are also shown.
3.3. Model Assessment
3.3.1. Factor Analysis, Reliability and Validity Test
The construct reliability and validity were assessed to determine the credibility of the survey data. Cronbach’s alpha and composite reliability techniques were used to assess scale reliability. These approaches are consistent with Hair Jr. et al. (2014) and as used in several management scholarly articles. The average variance test was used to assess the validity of constructs.
Factor analysis is used to validate the predictors used to investigate the constructs under investigation. Items were validated using factor analysis techniques in accordance with the partial least square structural equation modelling as suggested by Hair Jr. et al. (2014) . The outcome of the factor analysis indicates the indicators attained the acceptable threshold of 0.5 and above. This indicates the variables understudy can predict the outcome of unobserved constructs. The valid data set was used to examine the relationship of variables in conceptual the model (Table 3).
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Table 3. Outcome of factor, reliability and validity tests.
3.3.2. Correlation Test
The correlation analysis is performed to examine the association between organizational resilience, innovation performance and firm performance. Despite the outcome of correlation analysis does not equate to causality, it helps identify whether there is a relationship between latent variables. In addition, it provides additional credence to the reliability and validity test. An organization’s ability to adapt to an uncertain environment had some association with its ability to reinvent its processes, services and products. The introduction of new products and services to react to market uncertainty and competition is related to the innovation competencies and performance of individual enterprises, especially in the hospitality industry. Businesses operating in the VUCA environment need to adapt and reinvent their business model to survive and succeed.
Also, the outcome indicates organizational resilience has a positive association with the performance of firms in the hospitality sector. Although there is a positive association, examining the correlation coefficient reveals organizational resilience and innovation performance have a higher coefficient value as compared to the relationship between organizational resilience and firm performance. Table 4 presents the outcome of the correlation analysis.
3.4. Structural Model Assessment
The Ordinal Least Square (OLS) regression was used to examine the study’s structural model. It examined the extent to which organizational resilience impact firm innovation and overall performance. The firms in the hospitality sector have experienced a negative effect on their operation and overall performance. Study findings suggest organizational resilience had a positive impact on the innovation performance of the firm at an R2 value of 0.712. This reveals the significant role of a firm ability to adapt, and innovate and the risk-taking behaviour of firms contributes positively to the innovation capabilities and competencies of enterprises.
Inasmuch as the risk-taking, innovativeness and adaptability of firms have a positive impact on firm innovation performance, it has a non-significant but positive impact on organizational performance. The relationship between organizational resilience and the firm performance had an R2 value of 0.238.
In addition, the moderation analysis is performed to examine the moderating effect of social ties on the association between organizational resilience and the
*p < 0.05, **p < 0.01, ***p < 0.001.
innovation performance of enterprises within the hospitality sector. Examining the outcome of the analysis indicates social ties can influence the association between organizational resilience and innovation performance. The extent to which entrepreneurs and business owners are embedded within its community and ecosystem plays a crucial role in terms of access to the slack resource, knowledge and relational asset needed to thrive in an uncertain environment. Table 5 presents the outcome of the OLS analysis.
Furthermore, the outcome of the t-statistics is used to examine the hypotheses stated for the study. The findings of the study support two (2) out of the three stipulated hypotheses. Hypotheses 1 and 3 were supported by a t-statistics value of 8.542 and 6.851. Hypothesis 3 had a value of 1.912, well below the acceptable threshold of 1.96. Although the coefficient suggests a positive association between organizational resilience and firm performance, the extent is not very strong to affect the hypothesis.
4. Discussion and Implication
The results of the study show that firms with higher levels of organizational resilience are more likely to engage in innovative activities. This finding is consistent with previous research that has shown that resilient organizations are better equipped to respond to changes in the market environment and adapt to new situations (Lengnick-Hall et al., 2011; Masten, 2018) . Specifically, resilient firms are better able to identify and respond to market changes, overcome obstacles, and develop innovative products and services that meet the changing needs of their customers.
These findings have important implications for firms operating in the hospitality industry. In an increasingly competitive and dynamic market environment,
*p < 0.05, **p < 0.01, ***p < 0.001.
firms that are more resilient are better equipped to sustain their performance and competitive advantage. This study suggests that building and enhancing organizational resilience is a crucial strategy for firms seeking to improve their innovation performance and achieve long-term success.
The findings of this study are consistent with previous research that has shown a positive relationship between organizational resilience and firm performance (Aldrich & Meyer, 2015) . The study’s findings indicate that companies with higher organizational resilience levels are more likely to have stronger firm performance. This result is in line with earlier studies that have demonstrated that resilient businesses are better able to adapt to new circumstances and respond to market changes (Masten, 2018) . Particularly, resilient businesses are better able to recognize and adapt to market changes, get past challenges, and create winning business strategies.
The current study extends this previous research by demonstrating that social ties are particularly important in the context of organizational resilience. Specifically, our findings suggest that social ties can help firms to overcome barriers to innovation that may arise as a result of unexpected disruptions or challenges. This is consistent with the notion that social ties can provide firms with access to resources, information, and expertise that can be leveraged to overcome obstacles (Burt, 1992; Nahapiet & Ghoshal, 1998) .
Our results also suggest that the impact of social ties on innovation performance is not uniform across all firms. Rather, social ties appear to be particularly important for firms that are more resilient. This is consistent with previous research suggesting that firms with higher levels of resilience are better equipped to take advantage of external resources and opportunities (Coutu, 2002) .
The findings of this study have several implications for managers in the hospitality industry in Ghana. First, our results suggest that firms should focus on building and maintaining strong social ties with other firms, industry associations, and government agencies. This can be done through participation in industry events, networking opportunities, and collaborative initiatives.
Second, our results suggest that firms should invest in developing resilience capabilities. This includes developing contingency plans, investing in redundancy and flexibility, and building strong relationships with suppliers and other stakeholders. By doing so, firms can position themselves to take advantage of unexpected opportunities and overcome challenges that may arise. Third, our results suggest that firms should consider the unique context of their industry when developing innovation strategies. Specifically, firms in the hospitality industry in Ghana may benefit from focusing on incremental innovations that build on existing products and services, rather than radical innovations that require significant investment and risk.
5. Conclusion and Further Research
The purpose of the study is to investigate the effect of organizational resilience on innovation and firm performance of enterprises within the hospitality sector. In addition, it examines the moderating role of social ties. Using cross-sectional details from respondents in the hospitality landscape, the findings revealed there is a positive association between organizational resilience, innovation and firm performance. In conclusion, this study has provided evidence that organizational resilience has a positive impact on the innovation performance of firms in the hospitality industry in Ghana. Our findings suggest that firms that develop resilience capabilities are better positioned to take advantage of unexpected opportunities and overcome challenges that may arise. This is particularly important in an industry that is characterized by high levels of uncertainty and volatility. Our results suggest that firms that invest in developing resilience capabilities, foster a culture of innovation, and focus on incremental innovations are more likely to achieve competitive advantage and long-term success.
There are several limitations to this study that should be considered when interpreting our findings. First, the study was limited to firms in the hospitality industry in Ghana, and therefore, our findings may not be generalizable to other industries or contexts. Second, the study was cross-sectional in nature, and therefore, we cannot establish causality between organizational resilience and innovation performance. Future research should consider using longitudinal designs to better understand the relationship between resilience and innovation over time. Third, our measure of organizational resilience was based on a single construct, and future research should consider using a more comprehensive measure that captures the different dimensions of resilience. Finally, our measure of innovation performance was based on self-reported data, and future research should consider using objective measures of innovation performance, such as patent filings or revenue from new products and services. Despite these limitations, we believe that this study contributes to our understanding of the importance of organizational resilience in facilitating innovation in the hospitality industry in Ghana.