The Dual-Pathway Effect of Organizational Resilience on Firm Market Value in China: A Double-Edged Sword

Organizational resilience is a crucial capability that enables firms to navigate external shocks and achieve sustainability. While it enhances market value, it can also have potential negative impacts on it. Drawing from dynamic capability theory, this study adopts a dual-pathway approach to investigate the dual effects of organizational resilience on firm market value. Utilizing data from Chinese A-share listed firms during 2010–2022, our findings reveal that organizational resilience exhibits both positive and negative pathways on firm market value. Specifically, it can boost firm market value by promoting financial investment (positive pathway) while suppressing it through environmental, social, and corporate governance (ESG) responsibility fulfillment (negative pathway). Moreover, industry competition moderates the indirect effects of organizational resilience on firm market value through financial investment and ESG responsibility fulfillment. In high-competition environments, organizational resilience promotes financial investment, thus facilitating firm market value. Conversely, in low competition environments, organizational resilience enhances ESG responsibility fulfillment, subsequently hindering firm market value. This paper reveals the double-edged sword effect of organizational resilience on enterprise market value, offering a dialectical perspective for understanding their relationship. It also provides valuable insights for enterprises to develop solutions to enhance market value in a competitive industry environment.