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Purpose
The purpose of this article is to explore the role of industry e-commerce and firms' input and output knowledge capabilities in influencing firm resilience, as measured by post-shock stock price percentage changes. The findings highlight the importance of continuous learning over knowledge output in sustaining resilience during periods of uncertainty.
Design/methodology/approach
The study used panel data with 103 unique company tickers and 727 firm observations. Industry-level analyses utilized Kruskal–Wallis significance testing among industry classifications. Pairwise comparisons were also utilized to determine the difference among manufacturing and retailing industry subdivisions. Finally, hypotheses were subsequently examined via linear models with Box–Cox Transformations. Several robustness checks were performed to further validate the relationships within the research model.
Findings
Firms with higher levels of input innovative knowledge capability exhibited lower levels of stock price percentage decline in the post-shock period. The study did not find support for the hypothesis that outputting innovative knowledge capability had an impact on firm stock price post-shock percentage changes; however, it did find a relationship with industry e-commerce activity. This indicates the importance of relational information flows within an industry (e-commerce activity) and continuous learning within firms over output knowledge capability.
Originality/value
This study contributes to current literature on absorptive capacity by identifying the impacts of not only firm-level input and output innovative knowledge capabilities on an important facet of firm resilience, but also on industry-level e-commerce activity. Additionally, the study provides additional insights into the role of adaptive capacity in explaining the results.
The infographic features a title, descriptive text, and, below it, the illustration is divided into three horizontal sections. The title at the top and the descriptive text read as follows: “Innovative Knowledge and Firm Resilience: Stock Price Post-Shock Percentage Changes.” The next box with text is “The purpose of this paper is to explore the role of e-commerce and the input and output of a firm’s innovative knowledge capabilities in firm resilience, as measured through stock price post-shock percentage changes.” In the horizontal section, the first box reads “Introduction:” with the left line reading as follows: “Three research questions were addressed, including: (1) What inter-industry differences were observed in post-shock percentage changes during the COVID-19 pandemic? (2) To what extent does a firm’s industry-specific e-commerce activity influence its resilience to external shocks? (3) What is the impact of a firm’s input and output innovation capabilities (measured through R&D activity and patent generation) on its resilience?” The second box reads: “Method:” with the left line reading as follows: “The study used panel data with 103 unique company tickers and 727 firm observations. Industry-level analyses utilized Kruskal-Wallis significance testing among industry classifications. Pairwise comparisons were also utilized to determine the difference among manufacturing and retailing industry subdivisions. Finally, hypotheses were subsequently examined via linear models with Box-Cox Transformations.” The third box reads: “Findings:” with the left line reading as follows: Firms with higher levels of input innovative knowledge capability exhibited lower levels of stock price percentage decline in the post-shock period. The study did not find support for the hypothesis that outputting innovative knowledge capability had an impact on firm stock price post-shock percentage changes; however, it did find a relationship with industry e-commerce activity. This indicates the importance of relational information flows within an industry (e-commerce activity) and continuous learning within firms over output knowledge capability.” The boxes are connected by right arrows. A small box on the left, below the above three boxes, reads: “Keywords: Firm resilience; Innovative knowledge capability; Stock price post-shock percentage; Absorptive capacity; Adaptive capacity.” On the right of this box, another box reads “Limitations of the study include the use of industry-level data versus firm-level data, as well as the focus on stock price as the sole measure of resilience and the reliance on archival data versus qualitative insights. Future research should determine how individual firm ecommerce activity impacts their own firm resilience? It may incorporate other methods of determining a firm’s resiliency to further elaborate these relationships. It also might consider utilizing survey research methods of examining A C to capture knowledge acquisition, assimilation, transformation, and” The text at the bottom of the infographic reads “ALTTEXT: Graphical abstract: The purpose of this paper is to explore the role of e-commerce and the input and output of a firm’s innovative knowledge capabilities in firm resilience, as measured through stock price post-shock percentage changes. Three research questions were addressed, including: (1) What inter-industry differences were observed in post-shock percentage changes during the COVID-19 pandemic? (2) To what extent does a firm’s industry-specific e-commerce activity influence its resilience to external shocks? (3) what is the impact of a firm’s input and output innovation capabilities (measured through R and D activity and patent generation) on its resilience? The study uses panel data from 727 firms from 2016 to 2020 (before and after the COVID-19 shock). Industry-level analyses utilized Kruskal-Wallis significance testing out of industry classifications. Pairwise comparisons were also performed to determine the differences among the sub-divisions of the manufacturing and retailing industries. Hypotheses were examined via linear models with the help of Box-Cox transformation. The findings suggest that firms with higher levels of input innovative knowledge capability will experience lower levels of stock price post-shock percentage changes. The study did not find that output innovative knowledge capability had an impact on firm stock price post-shock percentage changes. The findings also suggest a relationship between industry e-commerce activity and post-shock percentage change. Additionally, the study provides further insights into the role of adaptive capacity in explaining the results”.The infographic features a title, descriptive text, and, below it, the illustration is divided into three horizontal sections. The title at the top and the descriptive text read as follows: “Innovative Knowledge and Firm Resilience: Stock Price Post-Shock Percentage Changes.” The next box with text is “The purpose of this paper is to explore the role of e-commerce and the input and output of a firm’s innovative knowledge capabilities in firm resilience, as measured through stock price post-shock percentage changes.” In the horizontal section, the first box reads “Introduction:” with the left line reading as follows: “Three research questions were addressed, including: (1) What inter-industry differences were observed in post-shock percentage changes during the COVID-19 pandemic? (2) To what extent does a firm’s industry-specific e-commerce activity influence its resilience to external shocks? (3) What is the impact of a firm’s input and output innovation capabilities (measured through R&D activity and patent generation) on its resilience?” The second box reads: “Method:” with the left line reading as follows: “The study used panel data with 103 unique company tickers and 727 firm observations. Industry-level analyses utilized Kruskal-Wallis significance testing among industry classifications. Pairwise comparisons were also utilized to determine the difference among manufacturing and retailing industry subdivisions. Finally, hypotheses were subsequently examined via linear models with Box-Cox Transformations.” The third box reads: “Findings:” with the left line reading as follows: Firms with higher levels of input innovative knowledge capability exhibited lower levels of stock price percentage decline in the post-shock period. The study did not find support for the hypothesis that outputting innovative knowledge capability had an impact on firm stock price post-shock percentage changes; however, it did find a relationship with industry e-commerce activity. This indicates the importance of relational information flows within an industry (e-commerce activity) and continuous learning within firms over output knowledge capability.” The boxes are connected by right arrows. A small box on the left, below the above three boxes, reads: “Keywords: Firm resilience; Innovative knowledge capability; Stock price post-shock percentage; Absorptive capacity; Adaptive capacity.” On the right of this box, another box reads “Limitations of the study include the use of industry-level data versus firm-level data, as well as the focus on stock price as the sole measure of resilience and the reliance on archival data versus qualitative insights. Future research should determine how individual firm ecommerce activity impacts their own firm resilience? It may incorporate other methods of determining a firm’s resiliency to further elaborate these relationships. It also might consider utilizing survey research methods of examining A C to capture knowledge acquisition, assimilation, transformation, and” The text at the bottom of the infographic reads “ALTTEXT: Graphical abstract: The purpose of this paper is to explore the role of e-commerce and the input and output of a firm’s innovative knowledge capabilities in firm resilience, as measured through stock price post-shock percentage changes. Three research questions were addressed, including: (1) What inter-industry differences were observed in post-shock percentage changes during the COVID-19 pandemic? (2) To what extent does a firm’s industry-specific e-commerce activity influence its resilience to external shocks? (3) what is the impact of a firm’s input and output innovation capabilities (measured through R and D activity and patent generation) on its resilience? The study uses panel data from 727 firms from 2016 to 2020 (before and after the COVID-19 shock). Industry-level analyses utilized Kruskal-Wallis significance testing out of industry classifications. Pairwise comparisons were also performed to determine the differences among the sub-divisions of the manufacturing and retailing industries. Hypotheses were examined via linear models with the help of Box-Cox transformation. The findings suggest that firms with higher levels of input innovative knowledge capability will experience lower levels of stock price post-shock percentage changes. The study did not find that output innovative knowledge capability had an impact on firm stock price post-shock percentage changes. The findings also suggest a relationship between industry e-commerce activity and post-shock percentage change. Additionally, the study provides further insights into the role of adaptive capacity in explaining the results”. Close modal
Graphical abstract
The infographic features a title, descriptive text, and, below it, the illustration is divided into three horizontal sections. The title at the top and the descriptive text read as follows: “Innovative Knowledge and Firm Resilience: Stock Price Post-Shock Percentage Changes.” The next box with text is “The purpose of this paper is to explore the role of e-commerce and the input and output of a firm’s innovative knowledge capabilities in firm resilience, as measured through stock price post-shock percentage changes.” In the horizontal section, the first box reads “Introduction:” with the left line reading as follows: “Three research questions were addressed, including: (1) What inter-industry differences were observed in post-shock percentage changes during the COVID-19 pandemic? (2) To what extent does a firm’s industry-specific e-commerce activity influence its resilience to external shocks? (3) What is the impact of a firm’s input and output innovation capabilities (measured through R&D activity and patent generation) on its resilience?” The second box reads: “Method:” with the left line reading as follows: “The study used panel data with 103 unique company tickers and 727 firm observations. Industry-level analyses utilized Kruskal-Wallis significance testing among industry classifications. Pairwise comparisons were also utilized to determine the difference among manufacturing and retailing industry subdivisions. Finally, hypotheses were subsequently examined via linear models with Box-Cox Transformations.” The third box reads: “Findings:” with the left line reading as follows: Firms with higher levels of input innovative knowledge capability exhibited lower levels of stock price percentage decline in the post-shock period. The study did not find support for the hypothesis that outputting innovative knowledge capability had an impact on firm stock price post-shock percentage changes; however, it did find a relationship with industry e-commerce activity. This indicates the importance of relational information flows within an industry (e-commerce activity) and continuous learning within firms over output knowledge capability.” The boxes are connected by right arrows. A small box on the left, below the above three boxes, reads: “Keywords: Firm resilience; Innovative knowledge capability; Stock price post-shock percentage; Absorptive capacity; Adaptive capacity.” On the right of this box, another box reads “Limitations of the study include the use of industry-level data versus firm-level data, as well as the focus on stock price as the sole measure of resilience and the reliance on archival data versus qualitative insights. Future research should determine how individual firm ecommerce activity impacts their own firm resilience? It may incorporate other methods of determining a firm’s resiliency to further elaborate these relationships. It also might consider utilizing survey research methods of examining A C to capture knowledge acquisition, assimilation, transformation, and” The text at the bottom of the infographic reads “ALTTEXT: Graphical abstract: The purpose of this paper is to explore the role of e-commerce and the input and output of a firm’s innovative knowledge capabilities in firm resilience, as measured through stock price post-shock percentage changes. Three research questions were addressed, including: (1) What inter-industry differences were observed in post-shock percentage changes during the COVID-19 pandemic? (2) To what extent does a firm’s industry-specific e-commerce activity influence its resilience to external shocks? (3) what is the impact of a firm’s input and output innovation capabilities (measured through R and D activity and patent generation) on its resilience? The study uses panel data from 727 firms from 2016 to 2020 (before and after the COVID-19 shock). Industry-level analyses utilized Kruskal-Wallis significance testing out of industry classifications. Pairwise comparisons were also performed to determine the differences among the sub-divisions of the manufacturing and retailing industries. Hypotheses were examined via linear models with the help of Box-Cox transformation. The findings suggest that firms with higher levels of input innovative knowledge capability will experience lower levels of stock price post-shock percentage changes. The study did not find that output innovative knowledge capability had an impact on firm stock price post-shock percentage changes. The findings also suggest a relationship between industry e-commerce activity and post-shock percentage change. Additionally, the study provides further insights into the role of adaptive capacity in explaining the results”.Graphical abstract
The infographic features a title, descriptive text, and, below it, the illustration is divided into three horizontal sections. The title at the top and the descriptive text read as follows: “Innovative Knowledge and Firm Resilience: Stock Price Post-Shock Percentage Changes.” The next box with text is “The purpose of this paper is to explore the role of e-commerce and the input and output of a firm’s innovative knowledge capabilities in firm resilience, as measured through stock price post-shock percentage changes.” In the horizontal section, the first box reads “Introduction:” with the left line reading as follows: “Three research questions were addressed, including: (1) What inter-industry differences were observed in post-shock percentage changes during the COVID-19 pandemic? (2) To what extent does a firm’s industry-specific e-commerce activity influence its resilience to external shocks? (3) What is the impact of a firm’s input and output innovation capabilities (measured through R&D activity and patent generation) on its resilience?” The second box reads: “Method:” with the left line reading as follows: “The study used panel data with 103 unique company tickers and 727 firm observations. Industry-level analyses utilized Kruskal-Wallis significance testing among industry classifications. Pairwise comparisons were also utilized to determine the difference among manufacturing and retailing industry subdivisions. Finally, hypotheses were subsequently examined via linear models with Box-Cox Transformations.” The third box reads: “Findings:” with the left line reading as follows: Firms with higher levels of input innovative knowledge capability exhibited lower levels of stock price percentage decline in the post-shock period. The study did not find support for the hypothesis that outputting innovative knowledge capability had an impact on firm stock price post-shock percentage changes; however, it did find a relationship with industry e-commerce activity. This indicates the importance of relational information flows within an industry (e-commerce activity) and continuous learning within firms over output knowledge capability.” The boxes are connected by right arrows. A small box on the left, below the above three boxes, reads: “Keywords: Firm resilience; Innovative knowledge capability; Stock price post-shock percentage; Absorptive capacity; Adaptive capacity.” On the right of this box, another box reads “Limitations of the study include the use of industry-level data versus firm-level data, as well as the focus on stock price as the sole measure of resilience and the reliance on archival data versus qualitative insights. Future research should determine how individual firm ecommerce activity impacts their own firm resilience? It may incorporate other methods of determining a firm’s resiliency to further elaborate these relationships. It also might consider utilizing survey research methods of examining A C to capture knowledge acquisition, assimilation, transformation, and” The text at the bottom of the infographic reads “ALTTEXT: Graphical abstract: The purpose of this paper is to explore the role of e-commerce and the input and output of a firm’s innovative knowledge capabilities in firm resilience, as measured through stock price post-shock percentage changes. Three research questions were addressed, including: (1) What inter-industry differences were observed in post-shock percentage changes during the COVID-19 pandemic? (2) To what extent does a firm’s industry-specific e-commerce activity influence its resilience to external shocks? (3) what is the impact of a firm’s input and output innovation capabilities (measured through R and D activity and patent generation) on its resilience? The study uses panel data from 727 firms from 2016 to 2020 (before and after the COVID-19 shock). Industry-level analyses utilized Kruskal-Wallis significance testing out of industry classifications. Pairwise comparisons were also performed to determine the differences among the sub-divisions of the manufacturing and retailing industries. Hypotheses were examined via linear models with the help of Box-Cox transformation. The findings suggest that firms with higher levels of input innovative knowledge capability will experience lower levels of stock price post-shock percentage changes. The study did not find that output innovative knowledge capability had an impact on firm stock price post-shock percentage changes. The findings also suggest a relationship between industry e-commerce activity and post-shock percentage change. Additionally, the study provides further insights into the role of adaptive capacity in explaining the results”.
