| International Journal of Business and Economics Volume 24, No. 1 June, 2025 |
| Business groups’ Liquidity resilience capabilities during the COVID-19 Shock in Indian Manufacturing and Service Industries |
| Nitya Nand Tripathi |
| The ICFAI Foundation for Higher Education (IFHE), (Deemed to be university u/s 3 of the UGC Act 1956) Hyderabad - 501203, Telangana, India |
| Aviral Kumar Tiwari |
| Indian Institute of Management Bodh Gaya, Bodh Gaya, India |
| Shawkat Hammoudeh |
| Lebow College of Business, Drexel University, Philadelphia, USA |
| Abstract |
| This study explores and evaluates cash holdings patterns, including cash-driven resilience capabilities for the manufacturing and service industries, and distinguishes between business group firms and stand-alone firms. Specifically, this study uses the ANOVA Kruskal-Wallis test to examine various cash-driven resilience capabilities and the weighted least-square (WLS) to test the stated research questions. The empirical outcomes uncover that non-resilient organizations predominate over resilient ones. Moreover, the study finds that various cash-driven resilience capabilities differ significantly from a statistical viewpoint. In the process, it contributes to the literature on the impacts of COVID-19 on both manufacturing and services industries. It also uses different empirical methodologies, including Driscoll-Kraay, pooled ordinary least squares, Rogers, White, and Newey-West Fixed effects between the group estimations and the generalised method of moments (GMM) estimator to check the robustness of the findings. Based on the findings, this study recommends that the management of manufacturing and service organizations focus on increasing organizational resilience potential. This study provides a platform for managers of the business group and the standalone firms to manage the liquidity so the companies should not face any liquidity crunch during adverse economic or epidemic conditions. |
| Keywords：Organizational Resilience, Dynamic Capabilities, Financial Slack, COVID‐19, Business Group, Manufacturing Industry, Service Industry |
| JEL Classifications：C3, G3, M2 |
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