Sensemaking and sensegiving as predicting organizational crisis
Galit Klein () and
Eyal Eckhaus ()
Additional contact information
Galit Klein: Ariel University
Eyal Eckhaus: Ariel University
Risk Management, 2017, vol. 19, issue 3, 225-244
Abstract The current study examined crisis management and the signals that indicate its appearance. Based on cognitive and social psychology theories, we explored how senior and non-senior employees engage in sensemaking and sensegiving activities prior to and during crisis. Based on natural language processing, we analyzed a database of 86,643 emails sent by Enron employees before Enron declared bankruptcy and after the bankruptcy event. Our findings showed that employees could sense the impending crisis and applied informal scanning methods in an attempt at sensemaking of their unstable reality. In parallel, managers used sensegiving by deploying more positive confidence words in their emails. This tendency escalated after the crisis broke out. We explain this increase as the need to resolve feelings of cognitive dissonance related to their identity and reality. Our findings suggest both theoretical and practical contributions for the survival of organizations.
Keywords: Crisis management; Sensemaking; Sensegiving; Enron; Natural language processing (NLP) (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
http://link.springer.com/10.1057/s41283-017-0019-7 Abstract (text/html)
Access to the full text of the articles in this series is restricted.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:pal:risman:v:19:y:2017:i:3:d:10.1057_s41283-017-0019-7
Ordering information: This journal article can be ordered from
Access Statistics for this article
Risk Management is currently edited by Igor Loncarski
More articles in Risk Management from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla ().