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Resilience, Performance and Strategies in Firms’ Reactions to the Direct and Indirect Effects of a Natural Disaster

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This work investigates the impacts of the 2012 Emilia-Romagna earthquake and looks at the capacity of the regional economic system to adapt to the shock generated by the seismic event. We contribute to the literature by distinguishing two different effects: direct (i.e. damages to production factors of the focal firm) and indirect effects (e.g. disruptions that affected industrial and business partners). The original dataset used and the chronological sequence of the information allow us to provide insightful evidence. The analysis of the two related effects generated by the same shock provides insights on the overall capacity of a regional system to adapt. Namely, the indirect damages appear as relevant as the direct damages, especially when looking at indicators of firm performance. In addition, indirect impacts are also relevant in shaping firm strategies and thus firm resilience.
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Resilience, Performance and Strategies in Firms
Reactions to the Direct and Indirect Effects
of a Natural Disaster
Davide Antonioli
1
&Alberto Marzucchi
2
&Marco Modica
2
Accepted: 13 January 2021 /Published online: 19 March 2021
#The Author(s), under exclusive licence to Springer Science+Business Media, LLC part of Springer Nature 2021
Abstract
This work investigates the impacts of the 2012 Emilia-Romagna earthquake and looks
at the capacity of the regional economic system to adapt to the shock generated by the
seismic event. We contribute to the literature by distinguishing two different effects:
direct (i.e. damages to production factors of the focal firm) and indirect effects (e.g.
disruptions that affected industrial and business partners). The original dataset used and
the chronological sequence of the information allow us to provide insightful evidence.
The analysis of the two related effects generated by the same shock provides insights
on the overall capacity of a regional system to adapt. Namely, the indirect damages
appear as relevant as the direct damages, especially when looking at indicators of firm
performance. In addition, indirect impacts are also relevant in shaping firm strategies
and thus firm resilience.
Keywords Firm resilience .Natural disasters .Firm performance .Firm strategies
JEL D22 .P25 .Q54
Networks and Spatial Economics (2022) 22:541565
https://doi.org/10.1007/s11067-021-09521-0
*Marco Modica
marco.modica@gssi.it
Davide Antonioli
davide.antonioli@unife.it
Alberto Marzucchi
alberto.marzucchi@gssi.it
1
Department of Economics and Management, University of Ferrara (IT), Ferrara, Italy
2
Gran Sasso Science Institute, Social Sciences, LAquila, Italy
Content courtesy of Springer Nature, terms of use apply. Rights reserved.
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