Government Supports, Digital Capability, and Organizational Resilience Capacity during COVID-19: The Moderation Role of Organizational Unlearning

Abstract

This paper provides an investigation into how different types of government supports can be used to enhance organizational resilience capacity during the COVID-19 pandemic. Based on resource orchestration theory, this study examines the effects of direct government support and indirect government support on organizational resilience capacity, the mediation role of digital capability, and the moderation effects of organizational unlearning. The empirical results from 205 Chinese firms show that direct government support and indirect government support have positive effects on organizational resilience capacity, which were mediated by digital capability. In addition, organizational unlearning positively and negatively moderates the positive relationship between direct government support, indirect government support and digital capability. Our theoretical discussion and empirical results contribute to the literature related to organizational resilience, digital capability, government support, and organizational unlearning.