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The dynamics of crisis in the entrepreneurial firm: an explanation using the Three-Domain Model

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  • Gus M. Geursen

Abstract

The dynamics of crisis have not been well understood or explored in the different literatures affecting the firm. In this paper, a liquidity crisis or evidence that the firm has entered a sequence of events leading to such a situation is considered as indicating crisis. The paper uses case studies from small and entrepreneurial firms to explore the anatomy of crisis; it also demonstrates that the logic can be extended to large firms. Furthermore, the paper indicates how the focus of managers has a significant bearing on liquidity health, and that sustained resolution of a crisis can only be achieved by increasing a firm's market relevance, which increases its cash flow from operations.

Suggested Citation

  • Gus M. Geursen, 2001. "The dynamics of crisis in the entrepreneurial firm: an explanation using the Three-Domain Model," International Journal of Entrepreneurship and Innovation Management, Inderscience Enterprises Ltd, vol. 1(3/4), pages 414-424.
    • Handle: RePEc:ids:ijeima:v:1:y:2001:i:3/4:p:414-424
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