IDEAS home Printed from https://ideas.repec.org/a/sae/metjou/v19y2020i2p121-128.html
   My bibliography  Save this article

Strategic Responses During Crisis: An Empirical Investigation

Author

Listed:
  • Neeraj Singhal

Abstract

The coronavirus spread across the globe has affected the human life and economies critically. On one side, this situation has brought the attention of policymakers to save the mankind, on the other side; this pandemic situation threatened the business across the sphere. The firms are worst hit by the virus outbreak and are struggling to survive in this tough phase. The objective of this study is to measure the challenges faced by manufacturing and service industry, and how it influenced the financial parameters such as market share, profit margin, and logistics cost, and operating cost of the organization. It is also to be observed that in such a crisis, an appropriate strategic plan is required to sustain the businesses. Sales, revenue, production, profit margin, raw material availability, in-house employees decreased in manufacturing industries during COVID-19 but no significant change is observed in the service industry. Raw material cost, manufacturing cost, logistics cost, and operating cost increased significantly in both manufacturing and services industries. Market share, advertising cost, and customer connect decreased in manufacturing industries and increased in services industries. The main strategies in crisis are investigated empirically; retrenchment, persevering, innovation, and exit (Wenzel M, Stanske S, Lieberman MB, 2020, Strategic Management Journal , 41 , V7–V18), it shows how organizations have taken steps proactively to fight in the crisis of COVID-19.

Suggested Citation

  • Neeraj Singhal, 2020. "Strategic Responses During Crisis: An Empirical Investigation," Metamorphosis: A Journal of Management Research, , vol. 19(2), pages 121-128, December.
    • Handle: RePEc:sae:metjou:v:19:y:2020:i:2:p:121-128
    DOI: 10.1177/09726225211008705
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/09726225211008705
    Download Restriction: no
    File URL: https://libkey.io/10.1177/09726225211008705?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. John A. Pearce & D. Keith Robbins, 1994. "Retrenchment remains the foundation of business turnaround," Strategic Management Journal, Wiley Blackwell, vol. 15(5), pages 407-417, June.
    2. Gonçalo Pacheco-De-Almeida, 2010. "Erosion, time compression, and self-displacement of leaders in hypercompetitive environments," Post-Print hal-00576341, HAL.
    3. Antonis Skouloudis & Athanasios Chymis & Stuart Allan & Konstantinos Evangelinos, 2014. "Corporate social responsibility: a likely causality of the crisis or a potential exit strategy component? A proposition development for an economy under pressure," Social Responsibility Journal, Emerald Group Publishing Limited, vol. 10(4), pages 737-755, September.
    4. Charlotte R. Ren & Ye Hu & Tony H. Cui, 2019. "Responses to rival exit: Product variety, market expansion, and preexisting market structure," Strategic Management Journal, Wiley Blackwell, vol. 40(2), pages 253-276, February.
    5. Nils Stieglitz & Thorbjørn Knudsen & Markus C. Becker, 2016. "Adaptation and inertia in dynamic environments," Strategic Management Journal, Wiley Blackwell, vol. 37(9), pages 1854-1864, September.
    6. Abhirup Chakrabarti, 2015. "Organizational adaptation in an economic shock: The role of growth reconfiguration," Strategic Management Journal, Wiley Blackwell, vol. 36(11), pages 1717-1738, November.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Krammer, Sorin M.S., 2022. "Navigating the New Normal: Which firms have adapted better to the COVID-19 disruption?," Technovation, Elsevier, vol. 110(C).
    2. Dean A. Shepherd & Trenton A. Williams, 2023. "Different response paths to organizational resilience," Small Business Economics, Springer, vol. 61(1), pages 23-58, June.
    3. Krammer, Sorin, 2021. "Navigating The New Normal: Which Firms Have Adapted Better To The Covid-19 Disruption?," MPRA Paper 109485, University Library of Munich, Germany.
    4. Klöckner, Maximilian & Schmidt, Christoph G. & Wagner, Stephan M. & Swink, Morgan, 2023. "Firms’ responses to the COVID-19 pandemic," Journal of Business Research, Elsevier, vol. 158(C).
    5. Lin, Eric S. & Lin, Chia-Ling & Lin, Hui-Lin & Hsiao, Yi-Chi, 2023. "Is downsizing a good strategy during the downturn? Evidence from Taiwanese manufacturing firms," Japan and the World Economy, Elsevier, vol. 65(C).
    6. Viswanathan Nagarajan & Prateek Sharma, 2021. "Firm internationalization and long‐term impact of the Covid‐19 pandemic," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 42(6), pages 1477-1491, September.
    7. Carlos S Baradello & Andrea Salazzaro, 2012. "The Role of Imitation in Global High-Tech Product Development," Symphonya. Emerging Issues in Management, University of Milano-Bicocca, issue 1 Innovat, pages 57-71.
    8. Carolina Rojas-Córdova & Amanda J. Williamson & Julio A. Pertuze & Gustavo Calvo, 2023. "Why one strategy does not fit all: a systematic review on exploration–exploitation in different organizational archetypes," Review of Managerial Science, Springer, vol. 17(7), pages 2251-2295, October.
    9. Ren, Chongqiang & Zhai, Guofang & Zhou, Shutian & Li, Shasha & Chen, Wei, 2017. "Adaptation assessment and analysis of economic growth since the market reform in China," Economics Discussion Papers 2017-24, Kiel Institute for the World Economy (IfW Kiel).
    10. Nadia Kabbara & Hale Ozgit, 2023. "Effectiveness of resource management of Lebanese NGOs in response to COVID-19 and the Syrian crisis," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-11, December.
    11. Brice Dattée & Oliver Alexy & Erkko Autio, 2018. "Maneuvering in Poor Visibility : How Firms Play the Ecosystem Game when Uncertainty is High," Post-Print hal-02276702, HAL.
    12. Jeffrey E. Stambaugh & John Martinez & G. T. Lumpkin & Niyati Kataria, 0. "How well do EO measures and entrepreneurial behavior match?," International Entrepreneurship and Management Journal, Springer, vol. 0, pages 1-21.
    13. de Rassenfosse, Gaétan & Jaffe, Adam B., 2018. "Econometric evidence on the depreciation of innovations," European Economic Review, Elsevier, vol. 101(C), pages 625-642.
    14. Romero, Jaime & Cruz-Roche, Ignacio & Charron, Jean-Philippe, 2020. "The myth of price convergence under economic integration: A proposed explanation for the difference in food prices across European countries," European Management Journal, Elsevier, vol. 38(2), pages 267-276.
    15. Dehua Gao & Flaminio Squazzoni & Xiuquan Deng, 2018. "The role of cognitive artifacts in organizational routine dynamics: an agent-based model," Computational and Mathematical Organization Theory, Springer, vol. 24(4), pages 473-499, December.
    16. Stephan Billinger & Kannan Srikanth & Nils Stieglitz & Terry R. Schumacher, 2021. "Exploration and exploitation in complex search tasks: How feedback influences whether and where human agents search," Strategic Management Journal, Wiley Blackwell, vol. 42(2), pages 361-385, February.
    17. Chanchai Tangpong & Michael Abebe & Zonghui Li, 2015. "A Temporal Approach to Retrenchment and Successful Turnaround in Declining Firms," Journal of Management Studies, Wiley Blackwell, vol. 52(5), pages 647-677, July.
    18. Sierk Horn & Tomoki Sekiguchi & Matthias Weiss, 2021. "Thrown off track? Adjustments of Asian business to shock events," Asian Business & Management, Palgrave Macmillan, vol. 20(4), pages 435-455, September.
    19. Wei Shi & Guoli Chen & Boshuo Li, 2023. "Problem Solving or Responsibility Avoidance? The Role of CEO Internal Attribution Tendency in Shaping Corporate Downsizing in Response to Performance Shortfalls," Journal of Management Studies, Wiley Blackwell, vol. 60(5), pages 1273-1301, July.
    20. Kim Wang, 2017. "Technology Deployment By Late Movers," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 21(04), pages 1-25, May.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:metjou:v:19:y:2020:i:2:p:121-128. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.