Unboxing organisational complexity: how does it affect business performance during the COVID-19 pandemic?

Abstract

PurposeThis study aims to distinguish businesses by their degree of complexity and to analyse the influence of complexity on the performance of firms during the coronavirus disease 2019 (COVID-19) pandemic.Design/methodology/approachData were collected from 468 businesses, and various multivariate statistical techniques were used. Initially a factor analysis was conducted, organising variables into five factors. A discriminant analysis, performed with the five factors, allowed discriminating firms based on whether they internationalise or not. A linear regression was performed in order to estimate the contribution of each factor in the business performance.FindingsThe results suggest the existence of additional variables for measuring the complexity. From the factorial analysis it is possible to conclude that business complexity can be explained by size, indebtedness and profitability, internationalisation, number of employees, and age and leverage. Total assets, indebtedness and age are the variables that contribute the most to business performance. On the other hand, indebtedness, internationalisation, age and leverage are the independent variables that most contribute to explain business performance.Originality/valueThis paper presents advances in two ways. First, it proposes measures of complexity (highly debatable in the literature). It also proposes internationalisation as an explanation of complexity. Second, this paper sheds light on businesses decisions to grow, taking into account how complexity may affect performance.

The impact of business process reengineering on organizational performance during the coronavirus pandemic: moderating role of strategic thinking

“…Organizational performance lies at the heart of an organization’s survival and is recognized as a central outcome variable of interest. The main goal is centred on how organizational performance can be enhanced and sustained to improve business profitability and survive in the long run (Pereira et al , 2021), especially in crises such as the current pandemic (Haq, 2020). It measures an organization’s actual performance in terms of how well the organization accomplished its goals.…”

Trust in COVID‐19 public health information

“…Decreased trust in media and in public health institutions as well as other government institutions are also correlated with adherence to conspiracy theories (Bruder & Kunert, 2022 ; Kalam & Ulya, 2020 ). At the same time, using Luhmann's ( 1979 ) theorization of trust, the complexity created by the social and economic repercussions of the pandemic (Bratianu, 2020 ; Gubrium & Gubrium, 2021 ; Pereira et al, 2021 ; Uhl‐Bien, 2021 ) has heightened the need for trust. Because preventive health behaviors were one of the polarizing forces during this pandemic, it is important to emphasize that trust—combined with a healthy perception of behavioral control, or self‐efficacy—is needed to effect positive change in health behaviors, especially among younger adults (Deng et al, 2021 ).…”

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All you need is...entrepreneurial attitudes": A deeper look into the propensity to start a business during the COVID-19 through a gender comparison (GEM data)

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