Development and Testing of Corporate Crisis Models

Project Title

The Effects of Corporate Strategy on Organisational Crisis Management and Survival

Grant Type

Australian Research Council Linkage Project

Start Date

July 2003

Brief Project Description

While a company can communicate to its stakeholders using a variety of methods in normal market conditions, in a crisis situation the key method of communication is via the media. There are many anecdotal studies in the literature that provide companies with advice on how to deal with crisis situation. However there is a lack of empirical evidence grounded in strategic management theory, which predict outcomes under different situations.

Therefore the aim of this project is to identify and test several theoretical models by conducting quantitative and qualitative research in the public and private sectors. The results of the study will provide understanding to Australian decision makers on the complex relationships between the genesis of a crisis, its management and its short-term and long-term effects. Moreover it would try to facilitate Australian decision makers to define and implement strategic decisions to avoid and identify potential major crises at the “issues” or genesis stage.

Research Partners

Assoc. Prof. Dr. Mile Terziovski - Chief Investigator

Victor Del Rio - PhD Student

Industry Partner

Media Manoeuvres - http://www.mediamanoeuvres.com.au/

Public Relations Institute of Australia (PRIA) - http://www.pria.com.au/

Work completed to date

Stage 1 (literature review) has been completed comprising a review of existing knowledge in strategic management, managing crisis, risk management and business continuity.

Secondly, the following case studies have been completed:

Australia:

1. National Australian Bank
2. The RMIT
3. Pam Pharmaceutical
4. Esso

New Zealand:

1. Seafood Industries
2. Air New Zealand

Chile:

1. BHP/ Rio Tinto Minera Lacondida
2. Orica Latin America
3. Celulosa Arauco

Also, a national cross-sectional survey is currently being concluded.