Innovative knowledge and firm resilience: stock price post-shock percentage changes

Document Type

Article

Publication Date

1-1-2025

Publication Title

Management Decision

Abstract

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.

First Page

1

Last Page

25

DOI

10.1108/MD-07-2024-1498

This document is currently not available here.

Share

COinS