How can service organizations build resilience by leveraging capabilities and service worker team knowledge?

Abstract

Purpose

Grounded in dynamic capabilities theory, this study aims to examine how dynamic capabilities and a transactive memory system (TMS) can build the resilience of service organizations and improve their financial performance. Limited studies examine the link between a TMS and organizational resilience.

Design/methodology/approach

The authors test a theoretical model on a sample of 350 UK service firms that were impacted by the COVID-19 pandemic and analyze the data using partial least square structural equation modeling.

Findings

Results highlight the positive effects of a TMS and dynamic capabilities on organizational resilience. Only a TMS and organizational resilience have direct positive effects on financial performance.

Originality/value

To the best of the authors’ knowledge, this is the first study to ascertain the influence of a TMS on organizational resilience in service firms following adversity.

Citation

Prayag, G., Ozanne, L.K. and Chowdhury, M. (2024), "How can service organizations build resilience by leveraging capabilities and service worker team knowledge?", Journal of Services Marketing, Vol. 38 No. 4, pp. 474-493. https://doi.org/10.1108/JSM-02-2023-0059