Organizational crisis : a model of emergence

Abstract

Most scholars in the crisis management field are either classifying the types of crisis or identifying the stages whereby crisis is manifested. Though these studies increase our understanding of the phenomena and how to organize it better, it does not help in increasing the visibility of the proximity of the distance between the crisis and the organization. Thus, the building of a model that can enhance the visibility of the proximity between the crisis incident and the organization is the purpose of this study. The grounded theory method was employed in this study. The data collected were transcripts from official inquiries into the sinking of the MV Princess Ashika in Tonga (2009) and the collapse of the Barings Bank (1995). This data was coded and classified in its appropriate categories. Further, these categories were then compared to studies in the research literature of other crisis incidents. Hence the model developed in this study was grounded in data from the inquiry reports as well as the literature review data and can be applied to cumulative crisis. There were 4 major categories found in this study that are organizational antecedents, push factors, pull factors, and vulnerability factors. The presence of these 4 categories was found to increase (if it has high presence) or decrease (if it has low presence) the crisis potential of the organization; hence, a proximity matrix was developed. Elements of the proximity matrix were used together with chaos theory and nonnal accident theory to depict the emergence of a crisis. Based on the proximity matrix and its depiction, recommendations for organizations as well as for future research were also suggested.