Strategic crisis response: managerial implications and direction for recovery and survival

Abstract

Purpose

The purpose of this paper is to provide managers with insights to help survive a crisis, create advantage during slow-growth recoveries and thrive when the crisis is over. Given the environment at the time of this paper, this paper focuses on widespread crises, such as a public health crisis like COVID-19.

Design/methodology/approach

The authors offer a conceptual framework, grounded in the attribution theory and situation crisis communication theory (SCCT), for managers to use when determining which crisis response strategy is most appropriate to use during a crisis. Propositions based on this framework are provided. This paper focuses on widespread crises, such as a public health crisis, particularly on the COVID-19 pandemic. Based on the framework proposed for organizational crisis response strategy and recovery, several insights for managers across a variety of industries emerge. Consideration of the best strategic approach to a crisis is essential, and time is critical. This framework provides a starting point for creating a proper response strategy when a crisis arises that is not within the organization’s crisis management planning. Managerial implications for several industries, such as restaurant, hotel, airline, education, retail, medical and other professional services, and theoretical implications to further the advancement of understanding are provided.

Findings

The findings of this paper demonstrate that organizations that apply an accommodative strategy during unintentional crises will survive, while during intentional crises, they will thrive in the marketplace. Similarly, organizations that apply an offensive strategy during unintentional crises will thrive, while during intentional crises, they will survive in the marketplace.

Practical implications

This paper provides a framework highlighting strategies that best protect an organization during both internally and externally caused crises. The response strategy and crisis framework are based on the attribution theory and SCCT. Building on this framework, six propositions are postulated. In keeping with this strategy and crisis framework, this study provides several crisis response insights for managers across a variety of industries. These suggestions act as a guide for managers when assessing how to respond in the early days of a crisis and what to do to recover from it.

Originality/value

This paper provides a crisis-strategy matrix, grounded in the attribution theory and SCCT, to provide decision-making guidance to help managers survive a crisis, create advantage during slow-growth recoveries and thrive when the crisis is over. The authors provide multiple industry insights related to the “how to” and the “what to” in the recovery from and survival through internally and externally caused crises.

Citation

Thakur, R. and Hale, D. (2022), "Strategic crisis response: managerial implications and direction for recovery and survival", Journal of Business & Industrial Marketing, Vol. 37 No. 10, pp. 1959-1973. https://doi.org/10.1108/JBIM-01-2021-0029