Working from Home and Firm Resilience to the COVID-19 Pandemic

Research output: Journal Publications and ReviewsRGC 21 - Publication in refereed journalpeer-review

14 Scopus Citations
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Detail(s)

Original languageEnglish
Pages (from-to)450-476
Journal / PublicationJournal of Operations Management
Volume69
Issue number3
Online published17 Jul 2022
Publication statusPublished - Apr 2023

Abstract

The COVID-19 pandemic has disrupted firms’ operations. To cope with the crisis, many firms have allowed their employees to work from home (WFH). We examine whether a firm’s WFH capacity has increased its resilience during the pandemic. We test the hypotheses using a unique data set that combines listed firms’ financial statements, supply chain partners, and job postings on a leading online platform that provides hiring services. We find that imposing COVID-19 anti-contagion policies on firms and their suppliers or customers significantly increases their operating revenue volatility, slows their recovery, and has repercussions on their supply chains. WFH enhances firms’ resistance capacity by reducing the effect of COVID-19 on their operating revenue volatility and disruptions to their supply chain partners; however, it also decreases their recovery capacity by extending the time taken to return to normal. Firm attributes, along with workers’ occupations, education, and experience, have an impact on the effect of WFH on firm resilience. This study enhances our understanding of shock transmission across supply chains and WFH as a source of firm resilience. © 2022 Association for Supply Chain Management, Inc.

Research Area(s)

  • COVID-19 pandemic, resilience, supply chain, work from home

Citation Format(s)

Working from Home and Firm Resilience to the COVID-19 Pandemic. / Ge, Chunmian; Huang, Hanwei; Wang, Zhiqiang et al.
In: Journal of Operations Management, Vol. 69, No. 3, 04.2023, p. 450-476.

Research output: Journal Publications and ReviewsRGC 21 - Publication in refereed journalpeer-review