Decision-Makers behind Effective Crisis Management : An industry comparison of a crisis prepared approach among Small and Medium-Sized Enterprises

Master Thesis within Business Administration Title: Decision-Makers behind Effective Crisis Management: An industry comparison of a crisis prepared approach among Small and Medium-Sized Enterprises Author: Renée Löwhagen Tutor: Angelika Löfgren Date: May, 2015 Key words: Crises, Crisis Management, Crisis preparedness, SME, Managerial decision-making Abstract Problem. The world is in an era with technological advancements, shorter business cycles and a growing competition that requires constant organizational changes in order for or-ganizations to stay on track. Uncertainty in the business world is therefore higher than ev-er. With respect to Small and Medium-Sized Enterprises (SMEs) and their central role in the European economy, it is of high relevance of today’s researchers to adopt the perspec-tive of these businesses to take on a more crisis prepared approach. Purpose. The focus of this study is to investigate the perception of the concepts of crisis and crisis management among SMEs’ managers in different industries in Sweden. Moreover, this study intends to develop an understanding of the decision-making behind a crisis pre-pared approach of different industries of SMEs. Method. This research employs a multi-methodical qualitative research approach in which, in-depth interviews with owner-managers of SMEs and a crisis expert have been conduct-ed. Results. This study indicates that there may be a lack of insight regarding the core meaning of crises and crisis management among the SMEs’ managers studied. Crises and crisis management was found to be perceived in a similar way among all the managers in the study. Crises were perceived as involving the personnel and safety issues of the business-es. Crisis Management, was understood as the management of an already occurred crisis, rather than the preparation for potential crises. A deficiency was found among the busi-nesses regarding crisis preparations. This seemed to be related to resource restrictions and a general lack of research about this topic in the context of SMEs. The study indicates that SME managers do not always make formal decisions regarding crisis preparations. In the cases where the SME managers of the study had prepared plans and strategies for how to handle crises, these had emerged as a gradual process rather than from decisions taken in this matter