Abstract:
The purpose of the article is to empirically test whether employee resilience will mediate the relationship between organizational resilience and organizational performance using the Balance Score Card (BSC) approach for measuring performance. As the resilience construct is still in development, this study aimed a quantitative approach to investigate employee resilience and organizational resilience through a questionnaire adopted from extant literature and organizational performance items based on the BSC approach. Two-stage disjoint approach for formative measures is used to run measurement and structural model in SmartPLS. The results reveal that employee resilience partially mediates the relationship between organizational resilience and organizational performance. Path analysis shows that organizational resilience has a significant impact on organizational performance, explaining that resilient employees make resilient organizations, leading to positive organizational performance in times of turbulence. As the literature on resilience in organizational context develops, this study adds to the theory building and testing on resilience in organizations. Furthermore, organizational resilience as a formative measure and measuring performance through BSC adds more to the novelty of this paper.
