Resilience strategies of Danish firms in the pandemic and their regional differences

This study investigates how firms build resilience during crises by analysing their management strategies and growth patterns during the COVID-19 pandemic. Using a unique dataset that combines data from a nationwide survey of Danish firms with administrative records, we assess the influence of various management strategies on employment. Our findings reveal that facilitating remote work, shifting production, increasing capital investments, and adopting new technologies are positively associated with employment growth, while state support, centralized decision-making, and insourcing strongly correlate with employment decline. The results also highlight regional differences in the adoption and effectiveness of management strategies: growing firms are predominantly located in urban areas, where strategies like remote work support and increased investment are more common. In contrast, rural firms have primarily survived the pandemic by relying on state support. This study underscores the importance of context-specific strategies for both urban and rural settings, providing practical insights for policymakers aiming to enhance business and regional resilience in future crises.