External shocks and enterprises' dynamic capabilities in a time of regional distress

We study if dynamic capabilities alleviate enterprises' revenue losses after an external shock. Contextually, we Norwegian enterprises before and the price decline of crude oil in 2014, which strongly affected economic activities across industries some regions, while others were practically unaffected. Empirically, combine data regional dependency enterprise- person-level enterprise-level revenues decline. Analyses 4,060 51 labor market regions show that unrelated education diversity alleviates for related has opposite negative effect. R&D investments innovation alter growth, but as effects are consistent more or less concepts static enterprise resources not capabilities.