Resilience capabilities in the face of environmental turbulence: the case of Hong Kong small
to medium enterprises
A thesis submitted in fulfilment of the requirements for the degree of Doctor of Philosophy
Yiu Ha Chu
BSc, MM (Marketing Management)
School of Management
College of Business
RMIT University
September 2015
ii
Declaration
I certify that except where due acknowledgement has been made, the work is that of the
author alone; the work has not been submitted previously, in whole or in part, to qualify for
any other academic award; the content of the thesis is the result of work which has been
carried out since the official commencement date of the approved research program; any
editorial work, paid or unpaid, carried out by a third party is acknowledged; and, ethics
procedures and guidelines have been followed.
Yiu Ha Chu
September 2015
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This dissertation is dedicated to my family and in memory of my mum.
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Acknowledgements
The completion of my dissertation and doctoral degree would not have been possible
without the help and support of many people. Thanks goes first to my supervior,
Professor Kosmas Smyrnios for his understanding, steady support, friendly
encouragement, and sage advice throughout the course of this dissertation. His
intellect, passion, and humor have made this a very smooth path, and a thoroughly
enjoyable one. Kos has not only been a supervisor, but also a friend, a role model,
and an inspiration, and for that I will be ever grateful. Thanks must be offered to
Associate Professor Booi Kam for his practical and valuable advice while I was
analyzing the data. Special and sincere thanks to Dr. Alan Montague for his support
and encouragement on my completion seminar.
Thanks to my friends, particularly, Teresa Tam, Kenith Leung and his students for the
support in data collection. I also truly appreciate my friends at RMIT University. We
shared information, discussed problems we encountered, and encouraged each other.
Finally, and most importantly, my love and gratitude goes out to my family, especially
my dearest dad, William Chu, my sisters, Rita, Sally, my brothers, Ken and Joseph.
In many ways these people had faith I could finish, when finishing seemed
impossible. I could not have done it without their sacrifice, support, patience, and
encouragement.
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Table of Contents
Page
Declaration...............................................................................................................
ii
Acknowledgements....................................................................................................
iv
List of Tables.............................................................................................................
viii
List of Figures............................................................................................................
x
List of Appendices.....................................................................................................
xi
Summary....................................................................................................................
1
Chapter 1: Introduction
Overview....................................................................................................................
12
Resesearch objectives................................................................................................
15
Thesis structure..........................................................................................................
19
Chapter 2: Literature Review
Overview....................................................................................................................
21
Resilience and related concepts.................................................................................
22
Resilience versus sustainability....................................................................
22
Resilience versus vulnerability.....................................................................
23
Resilience versus resistance.........................................................................
23
Definition and scope of resilience.............................................................................
24
Resilience in the ecological context..........................................................................
30
Resilience in the socio-ecological context.................................................................
31
Resilience in the psychological context.....................................................................
32
Resilience in the biological context...........................................................................
37
Resilience in the business context.............................................................................
38
Definitions of resilience................................................................................
38
Operationalization of resilience...................................................................
50
Small to medium entreprises (SMEs).....................................................................
57
Background and definition...........................................................................
57
Organizational capabilities........................................................................................
60
Dynamic capabilities (DC)...........................................................................
60
Marketing capabilities (MC)........................................................................
61
Information technology capabilities (ITC)...................................................
64
Human resource capabilities (HRC)............................................................
65
Chapter 3: Theoretical Conceptualization
Overview....................................................................................................................
69
Four dimensions of resilience capability...................................................................
70
Adaptability...............................................................................................................
70
Agility........................................................................................................................
75
Anticipatory ability....................................................................................................
82
Flexibility...................................................................................................................
87
Contingency theory....................................................................................................
94
Environmental turbulence as moderating of the relationship between resilience
capabilities and firm performance.............................................................................
95
Firm performance......................................................................................................
97
Dynamic, marketing, information technology, and human resource capabilities as
antecedents of resilience capabilities.........................................................................
100
Dynamic capabilities (DC)...........................................................................
100
Marketing capbilities (MC)..........................................................................
100
Information technology capabilities (ITC)...................................................
101
Human resource capabilities (HRC)............................................................
101