The Impact of Organizational Crisis Preparedness on Firm Business Performance

Abstract

Purpose-Organizations which are crisis prepared are generally considered better equipped to anticipate, detect, manage and make adequate decisions in times of crisis. Therefore, organizational crisis preparedness has strategic importance and signifi cant infl uence on business. Additionally, very successful organizations are to a large extent crisis prepared, which implies the existence of close ties between general business success and organizational crisis preparedness. Hence, it is of managerial interest to gain insight into whether organizational crisis preparedness can be considered an important determinant of business success. This study aims to empirically explore the importance of medium and large sized fi rms' organizational crisis preparedness and subsequent impact on their business success. Moreover, it aims to determine whether current organizational crisis preparedness and prospective organizational crisis preparedness statistically signifi cantly infl uence fi rm's organizational performance, measured through its two dimensionsbusiness effi ciency and business eff ectiveness. Design/Methodology/Approach-This study applies variance-based structural equation modeling PLS SEM on a set of empirically gathered results from a primary research survey. Findings and implications-This paper empirically confi rmed the existence of statistically signifi cant positive impact of organizational crisis preparedness on the business success. Rezultati i implikacije-Ovaj rad, baziran na temeljitom teorijskom istraživanju literature, empirijski je potvrdio postojanje statistički signifi kantne pozitivne re

Crisis Readiness: Revisiting the Distance Framework During the COVID-19 Pandemic

“…Organizational Crisis Readiness (or preparedness) is a term coined by Reilly ( 1993 ) that was initially defined as organizational flexibility in times of uncertainty caused by a crisis. Many authors argue that crisis preparation may be a critical determinant of survival for any organization, as it is an inevitable part of the organization and cannot be separated from regular business activity (Quarantelli, 1988 ; Hickman and Crandall, 1997 ; Labaš et al., 2017 ).…”

Are small businesses better prepared for crises? Czech case

“…It is of managerial interest to consider crisis preparation an important determinant of business success. The existence of close ties between general business success and organizational crisis preparedness has been identified (Labaš, 2017). Preparing for a crisis is a relatively cheap and efficient way to deal with a crisis situation in advance, and, therefore, it takes place in normal times.…”

“…It is of managerial interest to consider crisis preparation an important determinant of business success. The existence of close ties between general business success and organizational crisis preparedness has been identified (Labaš, 2017). Preparing for a crisis…”

العوامل المؤثرة فی الاستعداد للأزمات فی صناعة السیاحة والضیافة فی مصر: تصور الموظفین

“…Likewise, four items were used to measure government support based on (Burhan et al, 2021;Kong & Sun, 2021;Reilly, 1987). Further, crisis preparedness (six items) was adapted from (Labaš, 2017). Finally, the last section contains the profiles of respondents.…”