Resilience, Performance and Strategies in Firms’ Reactions to the Direct and Indirect Effects of a Natural Disaster

This work investigates the impacts of the 2012 Emilia-Romagna earthquake and looks at the capacity of the regional economic system to adapt to the shock generated by the seismic event. We contribute to the literature by distinguishing two different effects: direct (i.e. damages to production factors of the focal firm) and indirect effects (e.g. disruptions that affected industrial and business partners). The original dataset used and the chronological sequence of the information allow us to provide insightful evidence. The analysis of the two related effects generated by the same shock provides insights on the overall capacity of a regional system to adapt. Namely, the indirect damages appear as relevant as the direct damages, especially when looking at indicators of firm performance. In addition, indirect impacts are also relevant in shaping firm strategies and thus firm resilience.