Crisis response strategies: a digital reluctance perspective

Abstract

This research examines the convergence of digitalisation and managerial capabilities in shaping effective crisis response strategies, with a particular focus on understanding the factors that contribute to managers’ digital reluctance. In a two-wave study conducted during the COVID-19 pandemic (2020–2022) through a Dynamic Managerial Capability (DMC) lens, we incorporate the qualitative data from managers of four coworking spaces into a theoretical model that assesses digitalisation as a determinant of DMC in crisis management. Our findings show that digital sensing, digital seizing, and digital reconfiguration capabilities effectively coordinate the survival process. Additionally, we introduce the concept of ‘digital reluctance’ as a constraint on DMC in the context of digitalisation. This behaviour stems from a combination of social, human and cognitive factors, including an avoidance of costly digital tools due to limited resources, scepticism about the ability of digital tools to address core challenges, lack of a compelling competitive advantage, intrinsic confidence in digital maturity, challenges in managing employee learning, and reluctance to sustain digital initiatives that do not yield immediate results. With a theoretical contribution to the crisis management literature, our study provides a better understanding of digital coping mechanisms, highlighting the importance of managers’ social, human and cognitive capabilities. Practically, we analyse the managerial perspectives and pathways for adopting digital technologies to survive in crisis disruptions, against liquidity and solvency threats. Finally, we outline the relevant strategies for achieving business outcomes at four different levels of leveraging digitalisation and DMC exploitation.