Crisis as a catalyst: how the pre-existing values of entrepreneurs shape strategic crisis responses

Abstract

This study contributes to theorizing efforts on how social and environmental considerations integrate into crisis preparedness, crisis response, and resilience. Specifically, we explore how the strategic crisis response of small and medium-sized enterprises (SMEs) is shaped by the pre-existing values of entrepreneurs. We interviewed the leaders of 29 SMEs operating in the construction, manufacturing, and high-technology industries in the UK. We employed a multi-stage pattern matching approach to increase the transparency of the steps taken during the qualitative data analysis. We identified four higher order patterns with distinct variations in how SMEs respond to crisis, as well as in the entrepreneurial drivers and values associated with the decisions made. These are the following: (1) business continuity through economic prioritization, (2) profit-driven crisis response with opportunistic sustainability considerations, (3) crisis response anchored in established sustainability values, and (4) evolving through established sustainability values. We draw on the business-responsibility matrix that provides a structured way to analyze and compare firm responses to crises, making visible the link between actions, entrepreneurial values, and sustainability orientation.