Organizational Resilience and the Attention-Based View of the Firm—Empirical Evidence from German SMEs

The need for organizations to increase resilience is still growing, not least because of economic crises, such as the 2007–2009 global financial crisis, the COVID-19 pandemic, and supply shortages in raw material procurement combined with rising commodity costs and energy prices. We use an attention-based view approach as a theoretical lens to investigate the shift in management’s attention due to a crisis, with a particular focus on working capital management (WCM) as a decisive finance tool. In addition, we examine how management’s attention shifts to organizational resilience (OR). We also analyze how managers’ cognitive flexibility (CF), which reflects their ability to anticipate and quickly adapt, moderates the change in attention. By surveying 307 top and middle managers in German small- and medium-sized enterprises, we measure the crisis effect on the shift in managerial attention to WCM and OR. In addition, we measure managers’ CF and examine the contribution of these individual characteristics in the context of WCM and OR. Our mediation model reveals a positive, indirect-only effect of the crisis on the shift in management attention to OR mediated by the shift in management attention to WCM. In addition, our results show that managers’ CF negatively moderates the effect between managerial focus shifts to WCM and to OR. Our study’s results deepen the understanding of the importance of managers’ CF in times of crisis and the impact of CF on sales development, suggesting that managers’ CF may influence the link between the focal characteristics of WCM and OR.