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The Role of Corporate Governance in Enhancing Firm Resilience During Economic and Geopolitical Crises
Subject area: Management and Commerce · Area of research: Corporate Governance
DOI: https://doi.org/10.64388/IREV6I11-1714692
Abstract
The economic and geopolitical crises have become more systemic, causing disruptions that threaten the strategic sustainability, operational stability, and long-term survival of firms. This paper analyzes how corporate governance is a key tool in enhancing the resilience of firms in volatile environments. It defines resilience as a dynamic ability that is determined by governance systems, board efficiency, risk management practices, technological flexibility, and stakeholder-focused decision-making. The analysis combines the findings of the modern literature on the effects of crisis, digital transformation, supply chain disruption, strategic risk management, and stakeholder governance to substantiate how governance processes enhance the capacity of firms to predict shocks, absorb disruption, and rebound from adverse conditions. The article maintains that good governance leads to resilience in a variety of ways: strengthening strategic control and accountability, facilitating an informed and timely response in case of crisis, creating innovations and technological responsiveness, and aligning corporate response with larger stakeholder and sustainability expectations. It also points to the variability in governance response to economic and geopolitical crisis situations, and institutional and sectoral situations. The article builds on the knowledge of the role of corporate governance as not a simple compliance or structuring scheme, but a strategic and organizational resilience provider during times of deep uncertainty through the development of an integrative conceptual lens. The discussion also provides practical implications for boards, regulators, and other policymakers who aim to enhance the governance structure that can help create resilient and crisis-ready organizations.
Keywords
Corporate Governance, Firm Resilience, Economic Crises, Geopolitical Crises, Board Effectiveness, Risk Management and Oversight, Stakeholder Governance
How to cite this paper
@article{1714692,
author = {Zakaria Ferdous, Kaniz FatemaTuz Zahura, Susmita Saha, Mitun Roy},
title = {The Role of Corporate Governance in Enhancing Firm Resilience During Economic and Geopolitical Crises},
journal = {Iconic Research And Engineering Journals},
year = {2023},
volume = {6},
number = {11},
pages = {1050-1062},
issn = {2456-8880},
url = {https://www.irejournals.com/formatedpaper/1714692.pdf},
abstract = {The economic and geopolitical crises have become more systemic, causing disruptions that threaten the strategic sustainability, operational stability, and long-term survival of firms. This paper analyzes how corporate governance is a key tool in enhancing the resilience of firms in volatile environments. It defines resilience as a dynamic ability that is determined by governance systems, board efficiency, risk management practices, technological flexibility, and stakeholder-focused decision-making. The analysis combines the findings of the modern literature on the effects of crisis, digital transformation, supply chain disruption, strategic risk management, and stakeholder governance to substantiate how governance processes enhance the capacity of firms to predict shocks, absorb disruption, and rebound from adverse conditions. The article maintains that good governance leads to resilience in a variety of ways: strengthening strategic control and accountability, facilitating an informed and timely response in case of crisis, creating innovations and technological responsiveness, and aligning corporate response with larger stakeholder and sustainability expectations. It also points to the variability in governance response to economic and geopolitical crisis situations, and institutional and sectoral situations. The article builds on the knowledge of the role of corporate governance as not a simple compliance or structuring scheme, but a strategic and organizational resilience provider during times of deep uncertainty through the development of an integrative conceptual lens. The discussion also provides practical implications for boards, regulators, and other policymakers who aim to enhance the governance structure that can help create resilient and crisis-ready organizations.},
keywords = {Corporate Governance, Firm Resilience, Economic Crises, Geopolitical Crises, Board Effectiveness, Risk Management and Oversight, Stakeholder Governance},
month = {May},
doi = {https://doi.org/10.64388/IREV6I11-1714692}
}