The Role of Technological Resources in Building Organizational Resilience in Businesses, with the Moderating Effect of Absorptive Capacity

Abstract

The purpose of this research is to investigate the moderating role of absorptive capacity in the relationship between technological resources and organizational resilience. A quantitative research approach was employed with data collected from 251 respondents working in the software industry in Lahore using a structured questionnaire. The questionnaire included measures of technological resources, organizational resilience, and absorptive capacity. The data collected was analyzed by using Simple Regression Model and CFA analysis to examine the hypothesized relationships. The findings suggest that technological resources have a significant positive impact on both organizational resilience and absorptive capacity. Additionally, absorptive capacity had a significant positive impact on technological resources, and organizational resources. These results support the existing literature that absorptive capacity enhances an organization’s ability to leverage technological resources for resilience by allowing it to anticipate, understand, and respond to changes and disruptions in the environment. It acts as a bridge between the possessing technological resources and using them effectively in the face of challenges. The implications of this research are twofold, firstly it confirms that absorptive capacity is crucial for organizations, as they can use this knowledge to develop can leverage these technological resources to improve communication, streamline processes, and develop new products or services that meet changing market demands. This capability enables organizations to stay abreast of technological advancements and integrate them into their operations, thus maintaining a competitive edge.