Organizational Crisis Communication: Suboptimal Crisis Response Selection Decisions and Behavioral Economics

Abstract

Organizations in crisis often fail to select the optimal crisis response strategy, preferring strategies that avoid short-term losses over the ones that offer long-term gains. This article proposes a descriptive theory of behavioral crisis communication that uses principles of behavioral economics to explain the recurrence of suboptimal anomalies found in crisis communication. Based on decision-making literature we first argue that the distinct context in which crisis communication takes place (e.g., time pressure, information overload) determines whether or not decisions are made in an analytical or an intuitive manner. Behavioral economics further allows us to explain how intuitive decisions can sometimes be biased by heuristics, which can result in the choice for a suboptimal crisis response strategy in the heat of the moment.

Activating constructive employee behavioural responses in a crisis: Examining the effects of pre‐crisis reputation and crisis communication strategies on employee voice behaviours

“…This study contributes to theoretical developments in internal crisis communication (which have remained relatively unexplored) by extending evidence‐based crisis communication theories (SCCT and stealing thunder) to the internal context). To activate proactive behaviours, the primary objective of effective crisis communication, the researchers suggest timely and factual communication as the optimal strategy , based on the company and its management self‐disclosing information and providing accommodative responses to address the crisis (Claeys & Coombs, 2019). Since crisis communication theories have been developed and tested in the external context for decades, the effectiveness of optimal strategies in the internal context had not yet been empirically uncovered by existing research (Kim, Kang, Lee, & Yang, 2019).…”

“…Two communication strategies—crisis response and timing strategies—are widely used for effective crisis communication, affecting such behavioural crisis outcomes as word‐of‐mouth and purchase intent (Claeys & Opgenhaffen, 2016). Specifically, previous research has tested and provided substantial evidence‐based assessments of highly accommodative response and proactive self‐disclosure as the optimal strategies (Claeys & Coombs, 2019).…”

Brand Crisis Response Strategies: A Typologies Continuum

“…Precisely, these strategies can be arranged as three-levels starting with forced compliance or involuntary/forced recall, then voluntary compliance or voluntary recall and super efforts at highest level. Whilst, forced compliance or involuntary/ forced recall indicates that brands would recall the faulty product as a third party's order such as regulatory agencies (Siomkos et al, 2010;Claeys & Coombs, 2020). The voluntary recall/compliance indicates the organizational willingness to recall or fix faulty products before any governmental forces (Vassilikopoulou et al, 2009).…”

Organizational Communication Responses to Covid-19: Strategies and Practices

“…Based on decision-making literature, Claeys & Coombs (2020) argue that the distinct context in which crisis communication takes place determines whether or not decisions are made in an analytical or intuitive manner. In the context of crisis, all kinds of communication are used in accordance with their needs and effectivity.…”