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To sustain government services in times of disruptions, it is important to enhance the financial resilience of the government. This study explains the relationship between an organization’s financial resilience and its financial, human, and political resources using the framework of the resource-based view theory (RBV). The results show that the effect of government resources on financial resilience differs depending on the type of resources. Overall, while it is found that an increase in financial and human resources positively relates to financial resilience, an abundance of political resources negatively relates to resilience; and these findings are evident in the short-run model.

Understanding financial resilience from a resource-based view: Evidence from US state governments