The Role of Firms in Resilient Systems: A Multi‐Level Framework

• Date: 01 June 2019
• Published date: 01 June 2019
• Author: Brent McKnight
• DOI: http://doi.org/10.1002/cjas.1490

The Role of Firms in Resilient Systems: A

Multi-Level Framework

Brent McKnight*

McMaster University

Abstract

In this paper, we articulate a multi-level resilience-based

framework explaining how f‌irms facilitate stronger system-

level resilience. The framework stresses the importance of

f‌irm interdependence, describing how pooled versus sequen-

tial/reciprocal patterns of interdependence inf‌luence the re-

silience antecedents of diversity, slack, and redundancy. We

argue that the inter-f‌irm practices of self-governance and

supply chain collaboration function to maintain resilience

antecedents at more moderate and effective levels. This work

builds on prior resilience research that has remained fo-

cused on either f‌irm or system levels of analysis by stressing

the value of f‌irm interdependence as an important contin-

gency for effective system resilience. Copyright © 2018

ASAC. Published by John Wiley & Sons, Ltd.

Keywords: resilience, sustainability, multi-level, system-

level, theory

Résumé

Dans le présent article, nous présentons un cadre à

plusieurs niveaux fondé sur la résilience qui explique com-

ment les entreprises favorisent une résilience accrue au

niveau du système. Le cadre souligne l’importance de

l’interdépendance des entreprises, en décrivant comment

contrairement aux modèles séquentiels/réciproques les

modèles d’interdépendance regroupés inf‌luencent les anté-

cédents de résilience de la diversité, du relâchement et

de la redondance. Nous soutenons que les pratiques

interentreprises d’autogouvernance et de collaboration

dans la chaîne d’approvisionnement ont pour fonction de

maintenir les antécédents de résilience à des niveaux plus

modérés et eff‌icaces. L’étude s’appuie sur des recherches

antérieures sur la résilience, qui sont demeurées axées

sur les niveaux d’analyse des entreprises ou des systèmes,

en soulignant la valeur de l’interdépendance des

entreprises en tant qu’élément important de la résilience

des systèmes. Copyright © 2018 ASAC. Published by John

Wiley & Sons, Ltd.

Mots-clés: résilience, durabilité, multi-niveaux, niveau

systémique, théorie

Introduction

In this paper we are interested in the system-level sus-

tainability-related consequences of f‌irm-level action. By sys-

tem-level we mean the network of interacting agents that

exist at the level of industries and supply chains. We make

use of a def‌inition of sustainability that draws on resilience,

which is the ability to absorb disturbances, such as those

from ecological and social pressure, without forcing dra-

matic changes (Holling, 1973; Walker, Holling, Carpenter,

& Kinzig, 2004). Resilience captures the long-lived and

f‌lourishing aspects of sustainable development and lends

itself well to the discussion of sustainability in the context

of systems (Ehrenfeld, 2000).

The pursuit of sustainable development is an inherently

multi-level endeavour in that, while the object of sustainable

development exists at the level of economies, ecologies, and

societies, human activity deteriorating or ameliorating that

sustainability occurs at lower levels of analysis (Starik &

Rands, 1995; Starik & Kanashiro, 2013; Marcus, Kurucz,

& Colbert, 2010). However, organizational research on sus-

tainability often theorizes at the level of the f‌irm (Harrison &

Wick, 2014). For instance, organizational scholars have ex-

plored the relationship between a f‌irm’s socially or environ-

mentally focused activities and f‌irm performance (see Griff‌in

& Mahon, 1997; Margolis, Elfenbein, & Walsh, 2009), in-

vestigated how f‌irms manage to balance the varying interests

of different stakeholders (see Mitchell, Agle, & Wood,

1997), and studied f‌irm-level efforts to improve eco-

*Please address correspondence to: Brent McKnight, McMaster University,

DeGroote School of Business, 1280 Main Street West, Hamilton, Ontario,

L8S 4L8, Canada. Email: bmcknight@mcmaster.ca

Canadian Journal of Administrative Sciences

Revue canadienne des sciences de l’administration

36: 221–230 (2019)

Published online 15 April 2018 in Wiley Online Library (wileyonlinelibrary.com) DOI: 10.1002/CJAS.1490

Can J Adm Sci

36(2), 221–230 (2019)Copyright © 2018 ASAC. Published by John Wiley & Sons, Ltd. 221