COVID-19 as an advantage or a disaster? Crisis and change management strategies of Hong Kong social entrepreneurs during the pandemic

Abstract

PurposeA qualitative approach based on grounded theory was utilized, with data collected through 26 semi-structured interviews with social entrepreneurs. Alas’s Triangular Model provided the framework for data analysis and interpretation.Design/methodology/approachThis study explores how Hong Kong social enterprises approached crisis and change management during the COVID-19 pandemic, examining their resilience-building strategies.FindingsThe pandemic triggered an existential crisis for many social enterprises, causing severe revenue losses. However, strong leadership and cultures based on social mission enabled resilience. Enterprises demonstrated agility by rapidly transitioning operations online and establishing partnerships. Technology adaptation and social innovation were pivotal to sustaining impact.Research limitations/implicationsAs the sample comprises enterprises that survived the pandemic, insights into failed enterprises are lacking. Comparative analysis could illuminate differences in crisis response between successful and unsuccessful cases.Practical implicationsThe study’s practical implications suggest that social enterprises should focus on developing flexible crisis management plans, cultivating purposeful leadership, embracing digital transformation, strengthening collaborative networks and prioritizing organizational learning to effectively navigate crises while staying true to their social missions.Social implicationsFindings demonstrate how shared values and cultures grounded in purpose can anchor organizations amidst upheaval, fostering resilience. This underscores the role of social enterprises in modeling responsiveness to societal needs.Originality/valueWhile research has examined social enterprises’ vulnerability in crises, investigation into their crisis management practices is limited. This study enriches understanding of how social enterprises effectively navigate turbulence.