Stakeholder perceptions in organizational crisis management: exploring alternative configurations

Orlando E. Contreras-Pacheco, Cyrlene Claasen and Fernando J. Garrigós-Simón

Journal of Management & Organization, 2024, vol. 30, issue 5, 1344-1365

Abstract: Crises are socially constructed. Affected stakeholders of an organizational crisis conceive complex associations between their perceptions of the implicated company's response and about the company itself. The study moves away from a simple cause–effect view by deriving alternative configurations of these associations. This approach allows for a better understanding of how stakeholders attribute responsibility for a critical event and the resulting crisis faced by the company that caused it. Using partial least squares structural equation modeling and fuzzy-set qualitative comparative analysis, we analyze insights of 325 families affected by an environmental incident in 2018 involving Colombia's largest company. We establish a correlation between stakeholders' perceptions of crisis response timeliness and credibility. Accordingly, we expand on how perceptions affect organizational judgments. Finally, we propose that trustworthiness and reputation are antecedents to how organizational crisis response is perceived and how these antecedents affect the degree of the severity of the company crisis.

Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:cup:jomorg:v:30:y:2024:i:5:p:1344-1365_9

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