Of course it could. The Scandinavian kingdoms merged and split up numerous times. Denmark gave up Greenland -- an island many times its own size -- and survived, just as it had survived the sundering of the personal union in King Canute the Mighty of England and Denmark.
England survived the loss of Aquitaine and Normandy -- and later the loss of America. Portugal's independence didn't break Spain, or her empire. Poland was partitioned numerous times -- and guess what! It's still there, with Maria Theresa and King Frederick centuries in their graves -- and the Grand Master of the Teutonic Order, too, for that matter -- all dead and gone to hell with von Ribbentrop and Molotov, but Poland is still there, and smiled upon by a Polish pope to boot.
You really ought to read a book before attempting some of these generalizations.
Substitute Iceland for Greenland.
Icelanders still hate "the bloody Danes", but Denmark is still there. So's Iceland. Point.