Intl Conference on Economics, Finance & Business, Prague

RESILIENCE THROUGH STRATEGY: INVESTMENT DECISIONS AND DYNAMIC CAPABILITIES IN CAPITAL-INTENSIVE SECTORS

YURY PUKHA

Abstract:

The research investigates investment policy as a unique resource and business model innovation as a dynamic capability, considering these two elements as key factors contributing to resilience in the aftermath of an economic shock. We conduct a comprehensive statistical analysis using panel regression and DiD methods and spanning global telecommunications operators from 2012 to 2022, supplemented by case studies of operators in three countries. Authors propose theoretical framework of resilience capabilities for capital intensive sector that extends Resource Based View and Dynamic Capability theories. Findings confirm that firms that prioritize leading investments in core infrastructure outperform competitors. For capital heavy firms’ innovation in business model proves to be a powerful factor of resilience but secondary to investment as unique resource. The market advantage of firms that built both capabilities extends during crises, however, making quick adjustments during crisis in investment or business model innovation strategy does not lead to significant gains in market position.

Keywords: Digital Resilience (DR), Investment strategy, Dynamic Capability (DC), Business Model Innovation (BMI), Crisis Management