CHAPTER II

REVIEW OF RELATED LITERATURE AND STUDIES

A crisis refers to "a sudden and unexpected event that threatens to disrupt an

organization's operations and poses both a financial and a reputational threat" (Coombs,

2007:163). Early work on crisis management indicates that a sudden and unexpected

event threatens business goals and exerts stress on management to take prompt action to

respond (Hermann 1963). At the rm level, the core of crisis management is to develop

strategies that minimize economic loss and increase resilience through a crisis event.

Existing literature on crisis management mostly targets large rms with less attention on

small and medium size enterprises (Herbane, 2013). Small rms, due to resource

constraints, weaker market positioning, and other factors, may be more vulnerable to

crisis events. However, SMEs may have advantages as flexibility, learning capabilities,

innovation, customer relations (Herbane, 2010, 2013; Hong & Li, 2012; Irvine &

Anderson, 2006).

In recent years, crises have become increasingly trans boundary in nature. This

exploratory paper investigates whether and how the trans boundary dimensions of crises

such as pandemics, cyber-attacks and prolonged critical infrastructure failure accentuate

the challenges that public and private authorities confront in the face of urgent threats.

We explore the trans boundary dimensions of crises and disasters, discuss how an

increase in ‘trans roundedness’’ affects traditional crisis management challenges and

investigate what administrative mechanisms are needed to deal with these compounded

challenges. Building on lessons learned from past crises and disasters, our goal is to

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stimulate a discussion among crisis management scholars about the political‐

administrative capabilities required to deal with ‘trans boundary’ crises.

Based on the findings of a qualitative empirical study of corporate social

responsibility (CSR) in Swiss MNCs and SMEs, we suggest that smaller firms are not

necessarily less advanced in organizing CSR than large firms. Results according to

theoretically derived assessment frameworks illustrate the actual implementation status

of CSR in organizational practices. We propose that small firms possess several

organizational characteristics that are favorable for promoting the internal

implementation of CSR-related practices in core business functions, but constrain

external communication and reporting about CSR. In contrast, large firms possess

several characteristics that are favorable for promoting external communication and

reporting about CSR, but at the same time constrain internal implementation. We sketch

a theoretical explanation of these differences in organizing CSR in MNCs and SMEs

based on the relationship between firm size and relative organizational costs. © 2013

Springer Science Business Media Dordrecht.

This article argues that the ability of entrepreneurs to facilitate regional

adaptation to economic crises is mediated by the size and diversity of local knowledge

stocks. The specific research question addressed is the hypothesis that, in the aftermath

of a crisis, the birth rate of new firms will recover more rapidly in regions with a strong

and diverse knowledge stock. It is theorized that unrelated knowledge diversity is of

particular importance in stimulating new entrepreneurial opportunities and structural

change, whilst the incentive to exploit opportunities differs according to region-specific

factors. In addition to this theoretical contribution, the article develops spatial

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econometric models to test these research hypotheses using data on sub-regions of Great

Britain for 2004–2014. The results support the central theoretical hypotheses and

emphasize the positive significance of unrelated knowledge diversity and employment in

knowledge intensive services to regional recovery from an economic shock. A key

implication for policy-makers wishing to facilitate regional adaptation to crises is that it

is important to focus on fostering entrepreneurship by developing a region’s stock of

knowledge intensive services and the diversity of the knowledge creating sector, rather

than relying on specialized clusters of firms.

This paper presents results of a study of risk perceptions and risk communication

issues arising from the “Fowl Pest Crisis” in Belgium. During the crisis, various

unanticipated groups emerged as influential stakeholders – such as pigeon fancier

associations, zoos or collectors of exotic birds. These stakeholders were not used to

communicating with the public authorities responsible for the food chain and, as a result,

resorted to informal and political contacts in order to be heard; nor were the authorities

quickly able to establish a valid understanding of these stakeholders during the crisis.

Based on this evidence, we suggest that methods are needed to gather opinions and

worldviews of homogeneous groups of actors in advance of any crisis. These not only

give the opportunity to learn more about the stakeholders' views but also help to build

confidence with public authorities.

How do business leaders and aspiring entrepreneurs bounce back from

uncertainty and start businesses under challenging circumstances? Until recently, little

has been known about what drives entrepreneurial decisions during challenging times.

Our new research shows that specific personal factors matter greatly for the pursuit of

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entrepreneurship, especially during periods of adversity. Based on survey data from

more than 500 entrepreneurs in the United States and abroad to answer this question, we

find that entrepreneurial self-efficacy—defined as a belief in one's ability to be an

entrepreneur—and resilience are particularly important. In order to build self-efficacy

and resilience, entrepreneurs and aspiring entrepreneurs need to (1) engage in business

development training to build their belief in their entrepreneurial ability (i.e.,

entrepreneurial self-efficacy); (2) seek out networking events, special lectures, and

mentoring opportunities to learn by modeling others who have been resilient through

challenging times; and (3) be active in their entrepreneurial pursuits, practice business

acumen, and seek feedback from those who can be objective, critical, and encouraging.

Organizational research has long been interested in crises and crisis management.

Whether focused on crisis antecedents, outcomes, or managing a crisis, research has

revealed a number of important findings. However, research in this space remains

fragmented, making it difficult for scholars to understand the literature’s core

conclusions, recognize unsolved problems, and navigate paths forward. To address these

issues, we propose an integrative framework of crises and crisis management that draws

from research in strategy, organizational theory, and organizational behavior as well as

from research in public relations and corporate communication. We identify two primary

perspectives in the literature, one focused on the internal dynamics of a crisis and one

focused on managing external stakeholders. We review core concepts from each

perspective and highlight the commonalities that exist between them. Finally, we use our

integrative framework to propose future research directions for scholars interested in

crises and crisis management.

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 CHAPTER III

RESEARCH METHODOLOGY

Research Design

In order for the researchers to explain the research compactly, the researchers

used quantitative design or more specifically a descriptive quantitative research design to

further determining the survival, resilience and renewal strategies of small businesses in

Science City of Muñoz, Nueva Ecija. It includes the analysis, interpretation, description,

and discussion of the topic.

Respondents

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Research Instrument

For the gathering of data and information that is essential for this study, the

researchers formulated a structured questionnaire survey that is distributed online. The

survey instrument used a Likert-Scale with a scale from one (strongly disagree) to five

(strongly agree). The Likert scale is a five (or seven) point scale which is used to allow

the individual to express how much they agree or disagree with a specific statement. A

Likert scale assumes that the strength/intensity of an attitude is linear, i.e. on a continuum

from strongly agree to strongly disagree, and makes the assumption that attitudes can be

measured. (Saul McLeod, 2019).

Sampling Procedure

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Data Gathering Procedure

The primary source of data created from the researchers is made by questionnaire

to gather relevant data in this study. A survey questionnaire was distributed for the

respondents who is affected of COVID-19. The secondary source of data came from the

articles, internet, related studies about crisis management for small businesses will help in

giving concepts to the researchers. The researcher made questioning contains of item to

be rated according to the factors determining the survival, resilience, and renewal

strategies of small businesses using the following interpretations: (5) Strongly Agree (4)

Agree (3) Neutral (2) Disagree (1) Strongly Disagree.

Data analysis

In order to get the result of this quantitative study, Likert-Scale was used to

interpret the crisis management for small business in Science City of Muñoz during the

Covid-19. Data from questionnaires will be compiled, sorted, classified, and coded into a

coding sheet. Analysis of variance will be used to determine the survival, resilience and

renewal strategies of small business owners.

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Baumann-Pauly, D., Wickert, C., Spence, L. J., & Scherer, A. G. (2013). Organizing
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Bishop, P. (2019). Knowledge diversity and entrepreneurship following an economic

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