Towards a framework for repairing stakeholder trust in entrepreneurial small businesses in times of macro-level crises

Abstract

Purpose

The purpose of this study is to understand how managers in entrepreneurial small businesses (ESBs) deal with exogenous (macro) crises, particularly in relation to the breakdown of intra- and inter-stakeholder trust.

Design/methodology/approach

Utilising a qualitative approach, we draw lessons from Greek ESBs greatly affected by the 2008–2019 economic and 2020–2022 health crises. Based on 54 in-depth, longitudinal investigations of four ESBs at three time points, this research offers insights on overcoming organisation-stakeholder trust breakdowns that emerg due to crises.

Findings

The findings suggest that macro-level crises undermined the foundations of trust-based relationships, creating a trust gap between organisations and their stakeholders and threatening ESBs’ business practices. Our framework suggests that ESBs repair trust relationships, both intra- and inter-organisational, through sense-making of trust breakdown, implementing trust-repair strategies, and then maintaining trust in those stakeholder relationships through challenging crisis periods.

Practical implications

Practitioners can use the suggested framework in relation to overcoming intra- and inter-stakeholder trust breakdowns during macro-level crises.

Originality/value

The paper offers a new framework that can aid entrepreneurs and managers in making sense of repairing and maintaining trust in stakeholder relationships during turbulent times.

Citation

Psychogios, A., Szamosi, L.T.T., Prouska, R. and Gruda, D. (2024), "Towards a framework for repairing stakeholder trust in entrepreneurial small businesses in times of macro-level crises", Journal of Small Business and Enterprise Development, Vol. 31 No. 6, pp. 1146-1174. https://doi.org/10.1108/JSBED-07-2023-0301