scholarly journals Building crisis capacity with data breaches: the role of stakeholder relationship management and strategic communication

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Audra Diers-Lawson ◽  
Amelia Symons ◽  
Cheng Zeng
Keyword(s):  
Data Security ◽  
Crisis Communication ◽  
Relationship Management ◽  
Crisis Response ◽  
Response Strategy ◽  
Content Type ◽  
Typical Response ◽  
Data Breaches ◽  
Security Breaches

PurposeData security breaches are an increasingly common and costly problem for organizations, yet there are critical gaps in our understanding of the role of stakeholder relationship management and crisis communication in relation to data breaches. In fact, though there have been some studies focusing on data breaches, little is known about what might constitute a “typical” response to data breaches whether those responses are effective at maintaining the stakeholders' relationship with the organization, their commitment to use the organization after the crisis, or the reputational threat of the crisis. Further, even less is known about the factors most influencing response and outcome evaluation during data breaches.Design/methodology/approachWe identify a “typical” response strategy to data breaches and then evaluate the role of this response in comparison to situation, stakeholder demographics and relationships between stakeholders, the issue and the organization using an experimental design. This experiment focuses on a 2 (type of organization) × 2 (prior knowledge of breach risk) with a control group design.FindingsFindings suggest that rather than employing reactive crisis response messaging the role of public relations should focus on proactive relationship building between organizations and key stakeholders.Originality/valueFor the last several decades much of the field of crisis communication has assumed that in the context of a crisis the response strategy itself would materially help the organization. These data suggest that the field crisis communication may have been making the wrong assumption. In fact, these data suggest that reactive crisis response has little-to-no effect once we consider the relationships between organizations, the issue and stakeholders. The findings show that an ongoing program of crisis capacity building is to an organization's strategic advantage when data security breaches occur.

scholarly journals When is silence golden? The use of strategic silence in crisis communication

2019 ◽  
Vol 24 (1) ◽  
pp. 162-178 ◽  
Author(s):  
Phuong D. Le ◽  
Hui Xun Teo ◽  
Augustine Pang ◽  
Yuling Li ◽  
Cai-Qin Goh
Keyword(s):  
Crisis Communication ◽  
English Language ◽  
Communication Theory ◽  
Crisis Response ◽  
Organizational Image ◽  
Content Type ◽  
Response Strategies ◽  
Image Repair Theory ◽  
Future Events

Purpose Scholars have discouraged using silence in crises as it magnifies the information vacuum (see Pang, 2013). The purpose of this paper is to argue for its viability and explore the type of silence that can be used. Design/methodology/approach Eight international cases were analyzed to examine how silence was adopted, sustained and broken. Findings The findings uncovered three intention-based typologies of strategic silence: delaying, avoiding and hiding silences. Among such, avoiding/hiding silence intensified crises and adversely affected post-silence organizational image when forcefully broken, while delaying silence helped preserve/restore image with primary stakeholders if successfully sustained and broken as planned. Research limitations/implications First, these findings may lack generalizability due to the limited number of cases studied. Second, local sentiments may not be fully represented in the English-language news examined as they may be written for a different audience. Finally, a number of cases studied were still ongoing at the time of writing, so the overall effectiveness of the strategy employed might be compromised as future events unfold. Practical implications A stage-based practical guide to adopting delaying silence is proposed as a supporting strategy before the execution of crisis response strategies. Originality/value This is one of the few studies to examine the role of silence in crisis communication as silence is not recognized as a type of response in dominant crisis theories – be it the situational crisis communication theory or the image repair theory (An and Cheng, 2010; Benoit, 2015; Benoit and Pang, 2008; Xu and Li, 2013).

Does public segmentation matter in crisis communication? The interplay between public segmentation and crisis response strategies

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Taylor Jing Wen ◽  
Jo-Yun Li ◽  
Baobao Song
Keyword(s):  
Public Relations ◽  
Crisis Communication ◽  
Communication Theory ◽  
Safety Issue ◽  
Crisis Response ◽  
Response Strategy ◽  
Content Type ◽  
Public Relations Practitioners ◽  
Response Strategies ◽  
Modest Contribution

PurposeThis study situates in the context of Chipotle's food safety issue and seeks to understand how their primary customers perceive their crisis response messages after learning of the outbreaks. The current study incorporates the framework of situational crisis communication theory (SCCT; Coombs, 2007) and public segmentation model (Rawlins, 2006) to understand the effectiveness of crisis response messages. It aims to examine the role of public segmentation in situational crisis communication and investigate the effects of three crisis response strategies according to SCCT on different public segments.Design/methodology/approachThe SCCT provides guidelines for understanding the effectiveness of different crisis response strategies. The current study showcases the importance of public segmentation in the SCCT model through the lens of stakeholder theory. A 3 (crisis response strategy: deny, diminish, rebuild) × 4 (public segment: advocate, dormant, adversarial, apathetic) factorial experiment was conducted.FindingsThe findings suggest that advocate public expressed more positive evaluation about the company when exposed to rebuild and deny strategies. Both dormant and adversarial stakeholders reported positive responses on rebuild and diminish strategies. However, no difference was found among apathetic public.Originality/valueThe researchers attempt to make a modest contribution in this direction by reporting results from an empirical experiment that examined the effects of crisis response strategies on different public segments. The findings suggest an effective message tailoring approach to target different public segments. Thus, the results of this study are expected to benefit relevant corporations and public relations practitioners.

Can an apology change after-crisis user attitude? The role of social media in online crisis management

2019 ◽  
Vol 32 (4) ◽  
pp. 802-827
Author(s):  
Ying Li ◽  
Ke Yang ◽  
Jin Chen ◽  
Sumeet Gupta ◽  
Feiyang Ning
Keyword(s):  
Social Media ◽  
Crisis Management ◽  
Crisis Response ◽  
Response Strategy ◽  
Online Media ◽  
Firm Reputation ◽  
Content Type ◽  
Likelihood Model ◽  
Positive Effect

Purpose Drawing upon the Elaboration Likelihood Model, the purpose of this paper is to examine how the characteristics of social media moderate the effect of a firm’s apology on the attitude of its customers. Design/methodology/approach An online experiment including 360 active users of internet was employed to test the research model. Findings Results revealed that an after-crisis apology and firm reputation both have a positive effect on after-crisis user attitude toward the firm. Furthermore, the positive effect of apology becomes stronger as online media interactivity increases, whereas the positive effect of reputation becomes weaker. Research limitations/implications This study included only one important characteristic of social media, and experimental scenarios were limited to car recall crisis. Considering that social media has so many platforms that may have different kinds of interactivity, further studies can be conducted to figure out the most suitable social media for firms to deal with an online crisis. Practical implications The results inform managers of the importance of after-crisis apology and firm reputation. It is worthwhile for managers to find out the levels of online media interactivity at which users focus on apology and reputation and accordingly conduct an effective online crisis management response strategy. Originality/value This study extends the literature on online crisis management and the literature on ELM by highlighting the role of online media interactivity in influencing the persuasive effectiveness of firm’s crisis response in the context of social media.

The Value of Brand Fans during a Crisis: Exploring the Roles of Response Strategy, Source, and Brand Identification

2021 ◽  
pp. 232948842199969
Author(s):  
Hayoung Sally Lim ◽  
Natalie Brown-Devlin
Keyword(s):  
Social Media ◽  
Experimental Design ◽  
Crisis Communication ◽  
Word Of Mouth ◽  
Crisis Response ◽  
Response Strategy ◽  
Brand Identification ◽  
Communication Source ◽  
Practical Implications ◽  
Selection Of

Using a two (crisis response strategy: diminish vs. rebuild) × three (source: brand organization vs. brand executive vs. brand fan) experimental design, this study examines how brand fans (i.e., consumers who identify with a brand) can be prompted to protect a brand’s reputation during crises and how the selection of a crisis spokesperson can influence consumers’ evaluations of the crisis communication. Being buffers for their preferred brands, brand fans are more likely to accept their brand’s crisis response and engage in positive electronic word-of-mouth on social media. Brand fans are more likely to evaluate other brand fan’s social media accounts as a credible crisis communication source, whereas those who are not brand fans are more likely to evaluate brand and/or brand executives as credible. Findings provide theoretical applications in paracrisis literature pertaining to social media but also practical implications for brand managers to strategically utilize brand fans in crisis communication.

The quicker, the better? The antecedents and consequences of response timing strategy in the aftermath of a corporate crisis

2019 ◽  
Vol 14 (1) ◽  
pp. 19-38 ◽  
Author(s):  
Nengzhi (Chris) Yao ◽  
Jiuchang Wei ◽  
Weiwei Zhu ◽  
Alexander Bondar
Keyword(s):  
Media Coverage ◽  
Firm Value ◽  
Structural Equation ◽  
Empirical Support ◽  
Equation Model ◽  
Response Strategy ◽  
Content Type ◽  
Response Timing ◽  
Buffering Effects

Purpose The conclusions on the importance of corporate response timing to a crisis have remained inconsistent. Some studies suggest that active response may reduce negative impacts, whereas managers argue that issuing official response frustrates stakeholders and thus decreases the firm value. The purpose of this paper is to investigate the role of external media in the response timing strategy and the consequent stock market reaction. Design/methodology/approach Based on 130 corporate crises that befell publicly listed firms in China from 2007 to 2014, this paper uses the Baidu News Search Engine and Chinese Lexical Analysis System to construct the variables of the media characteristics. A structural equation model is established to test the hypotheses. Findings The results of this paper suggest that media coverage drives response timing after a crisis. Although an official response is a burden for firms, the timing strategy has multidimensional benefits including effectively alleviating negative effects (defined as buffering effects) and repairing the market (defined as restoring effects). Moreover, the buffering effects of response timing are stronger when completeness of response is low. Originality/value This study mainly contributes to crisis communication literature by introducing the role of media in prompting managers to make timing decisions. The findings of this study provide empirical support for the importance of timing response strategy.

Outsourcing relationship management: accounting in the decision mix

2018 ◽  
Vol 39 (5) ◽  
pp. 41-49
Author(s):  
Mirghani Nimir Ahmed
Keyword(s):  
Management Accounting ◽  
Accounting Information ◽  
Relationship Management ◽  
Internal Audit ◽  
Management Control ◽  
Control Mechanisms ◽  
Monitoring Cost ◽  
Content Type

Purpose The paper aims to examine the role of management accounting and accounting information in decisions to outsource and manage outsourcing relationships. Design/methodology/approach The paper uses a case study method. Data are collected through semi-structured interviews and informal discussions with executives of the participating companies. Official documents and secondary materials were analysed. Findings The findings of these cases present evidence of some roles given to accounting information and varying tasks assumed by accountants and finance staff in the outsourcing projects undertaken. These roles and tasks range from financial evaluation of new outsourcing proposals and alternatives, consultation and price negotiations in the planning and feasibility stages to the management of outsourcing relationships including monitoring, cost analysis, performance measurement, internal audit, design and implementation of risk-reward payment schemes. Managing the outsourced functions in one case involved in the use of informal control mechanisms such as trust, knowledge sharing, mutual understanding and cooperation between partners. Practical implications The paper highlights the role of management accounting and information in outsourcing relationship management and evaluation. The case findings provide the opportunity for management practitioners to understand the strategic role of management accountants in the management of inter-firm relationships. Originality/value The case study presents new empirical evidence of the role of management accounting and accounting information in the management control of outsourcing relationships.

scholarly journals Achieving employee support during the COVID-19 pandemic – the role of relational and informational crisis communication in Austrian organizations

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sabine Einwiller ◽  
Christopher Ruppel ◽  
Julia Stranzl
Keyword(s):  
Crisis Communication ◽  
Online Survey ◽  
Internal Communication ◽  
Equation Modeling ◽  
Relational Communication ◽  
Job Engagement ◽  
Organizational Resources ◽  
Content Type ◽  
Organizational Crises

PurposeBased on social exchange theory, the study examines the influence of informational and relational internal communication on cognitive and affective responses and job engagement during organizational crises caused by the COVID-19 pandemic.Design/methodology/approachData were collected by means of an online survey among people working in organizations with a minimum of 10 employees (N = 1,033) and analyzed using structural equation modeling.FindingsResults show that informational and relational communication as organizational resources have a significant but distinct influence on how employees support their employer during the crisis. While informational communication influences employees' acceptance of managerial decisions, relational communication exerts most influence on affective commitment, which is the strongest driver of job engagement.Research limitations/implicationsThe cross-sectional design, specific crisis situation and geographic location are limitations of the study.Practical implicationsDelivering relevant information to employees quickly and reliably is important. Yet, relationship-oriented communication that demonstrates appreciation and allows for participation has even stronger effects on job engagement, which is essential to mastering challenges arising from a crisis.Social implicationsDuring the COVID-19 pandemic, organizations demanded much from their employees. In exchange, organizations should provide the resources information, status and love (Foa and Foa, 1980) by means of internal crisis communication.Originality/valueThe study demonstrates the role of different types of internal communication during organizational crises used to convey organizational resources, and it highlights the mediating role of acceptance and commitment to enhance employees' engagement at work.

Strategic crisis response: managerial implications and direction for recovery and survival

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ramendra Thakur ◽  
Dena Hale
Keyword(s):  
Public Health ◽  
Attribution Theory ◽  
Slow Growth ◽  
Crisis Response ◽  
Response Strategy ◽  
Health Crisis ◽  
Content Type ◽  
Public Health Crisis ◽  
Crisis Response Strategy ◽  
Managerial Implications

Purpose The purpose of this paper is to provide managers with insights to help survive a crisis, create advantage during slow-growth recoveries and thrive when the crisis is over. Given the environment at the time of this paper, this paper focuses on widespread crises, such as a public health crisis like COVID-19. Design/methodology/approach The authors offer a conceptual framework, grounded in the attribution theory and situation crisis communication theory (SCCT), for managers to use when determining which crisis response strategy is most appropriate to use during a crisis. Propositions based on this framework are provided. This paper focuses on widespread crises, such as a public health crisis, particularly on the COVID-19 pandemic. Based on the framework proposed for organizational crisis response strategy and recovery, several insights for managers across a variety of industries emerge. Consideration of the best strategic approach to a crisis is essential, and time is critical. This framework provides a starting point for creating a proper response strategy when a crisis arises that is not within the organization’s crisis management planning. Managerial implications for several industries, such as restaurant, hotel, airline, education, retail, medical and other professional services, and theoretical implications to further the advancement of understanding are provided. Findings The findings of this paper demonstrate that organizations that apply an accommodative strategy during unintentional crises will survive, while during intentional crises, they will thrive in the marketplace. Similarly, organizations that apply an offensive strategy during unintentional crises will thrive, while during intentional crises, they will survive in the marketplace. Practical implications This paper provides a framework highlighting strategies that best protect an organization during both internally and externally caused crises. The response strategy and crisis framework are based on the attribution theory and SCCT. Building on this framework, six propositions are postulated. In keeping with this strategy and crisis framework, this study provides several crisis response insights for managers across a variety of industries. These suggestions act as a guide for managers when assessing how to respond in the early days of a crisis and what to do to recover from it. Originality/value This paper provides a crisis-strategy matrix, grounded in the attribution theory and SCCT, to provide decision-making guidance to help managers survive a crisis, create advantage during slow-growth recoveries and thrive when the crisis is over. The authors provide multiple industry insights related to the “how to” and the “what to” in the recovery from and survival through internally and externally caused crises.

Investigating country image influences after a product-harm crisis

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Roberta Carolyn Crouch ◽  
Vinh Nhat Lu ◽  
Naser Pourazad ◽  
Chen Ke
Keyword(s):  
Crisis Response ◽  
Purchase Intentions ◽  
Response Strategy ◽  
Country Image ◽  
Content Type ◽  
Response Options ◽  
Two Samples ◽  
Quasi Experimental ◽  
Attribution Of Blame ◽  
The Impact

Purpose Although international product-harm crises have become more common, the influence of the country image (CI) associated with foreign goods in such crises remains under researched. This study aims to investigate the extent to which the CI of a foreign made product influences consumers’ attribution of blame and trust and, ultimately, their future purchase intentions after the product is involved in a crisis. Design/methodology/approach A 2 (country) × 3 (crisis type) quasi experimental design was used, with data collected from Australia (n = 375) and China (n = 401). Findings CI can influence attribution of blame, subsequent levels of trust and likely purchase intentions. Australian and Chinese consumers have different views when it comes to trusting a company or placing blame, depending on the country of origin or the type of crisis. The direct and positive effect of CI on consumer purchase intentions following a product-harm crisis is sequentially mediated by attribution of blame and trust. Trust is the most powerful influence on future purchase intentions in both samples. Research limitations/implications In this research, only one type of crisis response strategy (no comment) was used. Thus, the results of this study must be viewed with caution when considering outcomes relating to other response options. Additionally, the testing was limited to only two samples, focussing on three countries (England, China, Vietnam), and one product context using a hypothetical brand. Further, despite our reasonable sample size (N = 776), the number of respondents represented in each cell would still be considered a limitation overall. Practical implications When developing crisis response strategies, managers should take into account the influence of a positive/negative source CI in driving attribution and trust. To minimize the impact of crisis on future purchasing decisions, organizations can leverage positive biases and mitigate negative ones, aiming to maintain or restore trust as a priority. Originality/value The study provides cross-country understanding about the significant role of CI during a product-harm crisis in relation to subsequent consumers’ blame attribution, their trust in the focal organization and ultimately their future purchase intentions.

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