Building Resilience in Volatile Environments: The Case of the Blue Lagoon in Iceland

Svala Gudmundsdottir (), Throstur Olaf Sigurjonsson and Lara Johannsdottir ()
Additional contact information
Svala Gudmundsdottir: University of Iceland
Throstur Olaf Sigurjonsson: University of Iceland
Lara Johannsdottir: University of Iceland

A chapter in Crisis in Context, 2026, pp 237-259 from Springer

Abstract: Abstract This chapter explores how the Blue Lagoon, one of Iceland’s most iconic and economically significant tourist destinations, has built organizational resilience in response to recurring natural disruptions, particularly volcanic activity and associated environmental risks on the Reykjanes Peninsula. Applying organizational resilience theory, the study analyzes how the Blue Lagoon anticipates, absorbs, and adapts to crises by examining various operational, strategic, and ethical responses. Drawing on qualitative interviews with executives and directors, the chapter identifies five interrelated themes: adaptive crisis management and operational flexibility, innovation in safety and risk mitigation, strategic leadership and decision-making culture, employee support and well-being, and learning culture and knowledge sharing. These themes demonstrate how resilience is not simply a technical capacity, but an embedded and evolving process shaped by leadership culture, community collaboration, and employee engagement. The chapter also highlights the company's ethical tensions in maintaining operations during periods of elevated risk. These include navigating trade-offs between financial imperatives and health-related responsibilities, especially regarding informed consent, risk communication, and duty of care toward guests and employees. By integrating real-time environmental monitoring, well-being programs, and knowledge sharing with local stakeholders, the Blue Lagoon has emerged as a case study of how tourism-dependent organizations can pursue profitability and responsible practices. The findings contribute to academic and practical discussions on resilience, emphasizing the need for context-specific strategies that reflect the complexity of volatile environments. In doing so, the chapter connects its case insights to broader sustainability frameworks, including ESG standards and the UN Sustainable Development Goals.

Keywords: Crisis management; Resilience; Environmental risk; Adaptation; Strategy (search for similar items in EconPapers)
Date: 2026
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-032-02657-6_13

Ordering information: This item can be ordered from
http://www.springer.com/9783032026576

DOI: 10.1007/978-3-032-02657-6_13

Access Statistics for this chapter

More chapters in Springer Books from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().