The Impact Of Executive Long-Term Orientation On Organizational Resilience In SMEs

In today’s VUCA environment,the discontinuity and disruptive nature of environmental shocks inevitably threaten the operation and survival of organizations.As an important force in China’s economic growth,the ability of SMEs to maintain the stability of their core structure and functions and achieve long-term survival and growth under multiple environmental shocks is of great significance to the future sustainable,healthy and stable development of our economy.The concept of organizational resilience provides a new framework for understanding the characteristics of successful corporate adaptation in the face of unpredictable change.Organizational resilience is seen as the ability of an organization to resist and cope with shocks from adverse events,to recover and bounce back quickly,and to grow against the odds in a reflective improvement process,which helps companies overcome the uncertainty and complexity of their environment,and scholars generally agree that companies should build and enhance organizational resilience in order to respond effectively to crises.Organizational resilience,as a capability that needs to be built over a long period of time and keeps the organization stable and flexible over time,is related to how companies weigh short-term and long-term interests and how they allocate resources across time,which is closely related to executives’ perceptions,decision making choices and time management.The long-term orientation of executives reflects the level of attention and importance that top management places on the long-term interests and future development of the company,prioritizing the long-term impact of decisions and actions,which is critical for companies to prepare in advance and build sustained competitive advantage to effectively respond to the external VUCA environment.However,while current research has focused on executive demographic traits,this paper argues that there is a need to explore the mechanisms by which the temporal cognitive trait of executive long-term orientation affects organizational resilience.Based on resource orchestration theory and organizational capability evolution perspectives,this paper examines the impact of long-term executive orientation on organizational resilience and the moderating effects of management tone,government subsidies,and regional relationship culture on this relationship by using SMEs as the sample of GEM listed companies during 2017-2021.This paper assesses organizational resilience in terms of financial volatility and long-term growth of firms in terms of organizational resilience outcomes.In addition,this paper employs textual analysis to directly construct the indicator of executive long-term orientation and uses OLS regression to examine its effect on organizational resilience.It was found that stronger executive long-term orientation was associated with lower financial volatility and higher long-term growth,and this finding still held after changing the measurement of the independent variable.In addition,government subsidies and regional relationship culture have a significant positive moderating effect on the relationship between executive long-term orientation and both corporate financial volatility and long-term growth.This paper examines how managers build organizational resilience based on resources from a time-oriented perspective,expands the research related to the factors influencing organizational resilience,emphasizes the importance of executive long-termism values,and provides some insights into how SMEs should achieve long-term survival and growth in reality.Managers,as decision makers of enterprises,should do a good job of long-term strategic planning,balance short-term interests with long-term interests,acquire and utilize resources,and pay attention to the construction of core competencies in order to ensure that enterprises can meet both the needs of current development and long-term future survival.Meanwhile,this paper introduces text analysis method and machine learning method into the study of long-term orientation of executives,which provides reference and reference for future research in this field.