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How do dynamic capabilities affect MNEs’ profit resilience to exogenous shocks?

Sjöholm, Isak LU ; Chaniotakis, Georgios LU and Petrén, Joel LU (2024) IBUH19 20241
Department of Business Administration
Abstract
This thesis investigates the impact of dynamic capabilities (DC) on multinational enterprises' (MNE) ability to maintain and recover performance amidst shock, which is defined as profit resilience in this paper. In a world where exogenous shocks are increasing in frequency, research that explores the driving forces behind tackling disruption is more relevant than ever. This paper focuses on the COVID-19 pandemic using data from the years 2019 and 2021. The study employed a quantitative research design with a deductive approach, it analyzes data from large firms across various industries. Key variables included international exposure, innovation capabilities, financial flexibility, and asset flexibility, operationalized as proxies to DC... (More)
This thesis investigates the impact of dynamic capabilities (DC) on multinational enterprises' (MNE) ability to maintain and recover performance amidst shock, which is defined as profit resilience in this paper. In a world where exogenous shocks are increasing in frequency, research that explores the driving forces behind tackling disruption is more relevant than ever. This paper focuses on the COVID-19 pandemic using data from the years 2019 and 2021. The study employed a quantitative research design with a deductive approach, it analyzes data from large firms across various industries. Key variables included international exposure, innovation capabilities, financial flexibility, and asset flexibility, operationalized as proxies to DC capabilities via financial data. Our findings suggest that MNEs’ degree of dynamic capabilities, particularly in conjunction, does have an effect on their profit resilience, highlighting the importance of the synergistic effects between variables. While the study identifies significant relationships, the explanatory power remains limited, leaving the causal relationship ambiguous. Still, this research contributes to the theoretical understanding of dynamic capabilities and offers practical insights for MNEs to enhance their profit resilience in an increasingly volatile global environment. (Less)
Please use this url to cite or link to this publication:
author
Sjöholm, Isak LU ; Chaniotakis, Georgios LU and Petrén, Joel LU
supervisor
organization
course
IBUH19 20241
year
type
M2 - Bachelor Degree
subject
keywords
Profit resilience, dynamic capabilities, multinational enterprises, exogenous shocks, COVID-19
language
English
id
9158730
date added to LUP
2024-08-07 17:52:08
date last changed
2024-08-07 17:52:08
@misc{9158730,
  abstract     = {{This thesis investigates the impact of dynamic capabilities (DC) on multinational enterprises' (MNE) ability to maintain and recover performance amidst shock, which is defined as profit resilience in this paper. In a world where exogenous shocks are increasing in frequency, research that explores the driving forces behind tackling disruption is more relevant than ever. This paper focuses on the COVID-19 pandemic using data from the years 2019 and 2021. The study employed a quantitative research design with a deductive approach, it analyzes data from large firms across various industries. Key variables included international exposure, innovation capabilities, financial flexibility, and asset flexibility, operationalized as proxies to DC capabilities via financial data. Our findings suggest that MNEs’ degree of dynamic capabilities, particularly in conjunction, does have an effect on their profit resilience, highlighting the importance of the synergistic effects between variables. While the study identifies significant relationships, the explanatory power remains limited, leaving the causal relationship ambiguous. Still, this research contributes to the theoretical understanding of dynamic capabilities and offers practical insights for MNEs to enhance their profit resilience in an increasingly volatile global environment.}},
  author       = {{Sjöholm, Isak and Chaniotakis, Georgios and Petrén, Joel}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{How do dynamic capabilities affect MNEs’ profit resilience to exogenous shocks?}},
  year         = {{2024}},
}