“Given the recent and continuing spate of major crises, this book should be read by every corporate executive, student of business, and EVERYONE connected with business.” Ian Mitroff, University of California Berkeley, US THE ROUTLEDGE COMPANION TO RISK, CRISIS AND EMERGENCY MANAGEMENT This volume provides a comprehensive, up-to-date overview of the latest management and organizational research related to risk, crisis, and emergency management. It is the first vol- ume to present these separate, but related, disciplines together. Combined with a distinctly social and organizational science approach to the topics (as opposed to engineering or finan- cial economics), the research presented here strengthens the intellectual foundations of the discipline while contributing to the development of the field. The Routledge Companion to Risk, Crisis and Emergency Management promises to be a de- finitive treatise of the discipline today, with contributions from several key academics from around the world. It will prove a valuable reference for students, researchers, and practi- tioners seeking a broad, integrative view of risk and crisis management. Robert P. Gephart, Jr. is Professor at the University of Alberta, School of Business. He has served as Associate Editor for Organizational Research Methods, and in 2015, received the Sage Career Achievement Award from the Research Methods Division of the Academy of Management. C. Chet Miller is C.T. Bauer Professor of Organizational Studies at the University of Houston. His research focuses on the functioning and effects of executive teams, the design of strategic decision processes within firms, and the use of seemingly impossible organiza- tional goals. His work has appeared in outlets such as Harvard Business Review and Academy of Management Journal. Karin Svedberg Helgesson is Associate Professor in the Department of Management and Organization at the Stockholm School of Economics, Sweden. She has published several books, and her work has appeared in journals such as Organization Studies and the Journal of Common Market Studies. RoutLedge Companions IN Business, Management AND Accounting Routledge Companions in Business, Management and Accounting are prestige reference works providing an overview of a whole subject area or sub-discipline. These books survey the state of the discipline including emerging and cutting edge areas. Providing a compre- hensive, up-to-date, definitive work of reference, Routledge Companions can be cited as an authoritative source on the subject. A key aspect of these Routledge Companions is their international scope and relevance. Edited by an array of highly regarded scholars, these volumes also benefit from teams of contributors which reflect an international range of perspectives. Individually, Routledge Companions in Business, Management and Accounting provide an impactful one-stop-shop resource for each theme covered. Collectively, they represent a comprehensive learning and research resource for researchers, postgraduate students, and practitioners. Published titles in this series include: THE ROUTLEDGE COMPANION TO ORGANIZAtiONAL CHANGE Edited by David M. Boje, Bernard Burnes and John Hassard THE ROUTLEDGE COMPANION TO COst MANAGEMENT Edited by Falconer Mitchell, Hanne Nørreklit and Morten Jakobsen THE ROUTLEDGE COMPANION TO DIGITAL CONSUmptiON Edited by Russell W. Belk and Rosa Llamas THE ROUTLEDGE COMPANION TO IDENtiTY AND CONSUmptiON Edited by Ayalla A. Ruvio and Russell W. Belk THE ROUTLEDGE COMPANION TO RisK, Crisis AND EMErgENCY MANAGEMENT Edited by Robert P. Gephart, Jr., C. Chet Miller, and Karin Svedberg Helgesson For more information about this series, please visit: www.routledge.com/Routledge- Companions-in-Business-Management-and-Accounting/book-series/RCBMA THE ROUTLEDGE COMPANION TO RISK, CRISIS AND EMERGENCY MANAGEMENT Edited by Robert P. Gephart, Jr., C. Chet Miller, and Karin Svedberg Helgesson First published 2019 by Routledge 711 Third Avenue, New York, NY 10017 and by Routledge 2 Park Square, Milton Park, Abingdon, Oxon, OX14 4RN Routledge is an imprint of the Taylor & Francis Group, an informa business © 2019 Taylor & Francis The right of Robert P. Gephart, Jr., C. Chet Miller, and Karin Svedberg Helgesson to be identified as the author of the editorial material, and of the authors for their individual chapters, has been asserted in accordance with sections 77 and 78 of the Copyright, Designs and Patents Act 1988. All rights reserved. No part of this book may be reprinted or reproduced or utilised in any form or by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying and recording, or in any information storage or retrieval system, without permission in writing from the publishers. Trademark notice: Product or corporate names may be trademarks or registered trademarks, and are used only for identification and explanation without intent to infringe. Library of Congress Cataloging-in-Publication Data A catalog record has been requested for this book ISBN: 978-1-138-20886-5 (hbk) ISBN: 978-1-315-45817-5 (ebk) Typeset in Bembo by codeMantra To people who have experienced harm from organizational risks and crises and to first responders who have given their lives in the process. And as always, to Bev, Keith, and Laura with love. –Robert P. Gephart, Jr. To Laura, Martini, and Olive: The adventure would not be the same without you. –C. Chet Miller To Maj and Jerry who paved the way. –Karin Svedberg Helgesson CONTENTS List of Figures xiii List of Tables xiv Preface xv Acknowledgments xvii Authors xviii Contributors xix PART I An Introduction to Risk, Crisis and Emergency Management 1 1 Introduction to Risk, Crisis and Emergency Management in Enterprises and Organizations 3 Robert P. Gephart, Jr., Karin Svedberg Helgesson, and Max Ganzin PART II Foundational Processes 15 2 Key Challenges in Crisis Management 17 Jeroen Wolbers and Kees Boersma 3 Post-disaster Recovery: Pathways for Fostering Disaster Risk Reduction 35 Loïc Le Dé and Sushma Shrestha 4 Crisis Communication: The Best Evidence from Research 51 W. Timothy Coombs 5 Collective Fit for Emergency Response Teams 67 April D. Schantz and Juanita M. Woods ix Contents PART III Theoretical Viewpoints and Methods 85 6 Risk, Crisis and Organizational Failure: Toward a Post-rationalist View 87 Thomas D. Beamish 7 Risk Sensemaking 108 Robert P. Gephart, Jr. and Max Ganzin 8 Issues and Trends in Research Methods: How We Learn Affects What We Learn about Crises, Risks, and Emergency Responses 127 Rob Austin McKee, Connor Lubojacky, and C. Chet Miller 9 Researching Risk, Emergency and Crisis: Taking Stock of Research Methods on Extreme Contexts and Moving Forward 146 Markus Hällgren and Linda Rouleau 10 Local Translations of Operational Risk 162 Barbara Czarniawska PART IV Types of Crises 175 11 The Co-evolution of Reputation Management, Governance Capacity, Legitimacy and Accountability in Crisis Management 177 Tom Christensen, Per Lægreid, and Lise H. Rykkja 12 Relative Risk Construction through a Risk Boundary and Set of Risk Rituals: The Mining Context in the Soma Disaster 192 Cagri Topal, Cagatay Topal, and Fatma Umut Beşpınar 13 Systemic Planetary Risks: Implications for Organization Studies 213 Gail Whiteman and Amanda Williams 14 Event Risks and Crises: Barriers to Learning 228 Christian Huber and Tobias Scheytt 15 Bernácer’s Topical Theory of Crisis and Unemployment 243 Henri Savall and Véronique Zardet 16 Risk and Human Resources 259 Mike Annett x Contents PART V International Case Studies 281 17 Invasive Species, Risk Management, and the Compliance Industry: The Case of Daro Marine 283 Debbie Harrison, Claes-Fredrik Helgesson, and Karin Svedberg Helgesson 18 Tension in the Air: Behind the Scenes of Aviation Risk Management 296 David Passenier 19 The Risks of Financial Risk Management: The Case of Lehmann Brothers 312 Henrik Dosdall and Rolf Nichelmann 20 Blame and Litigation as Corporate Strategies in the Context of Environmental Disasters: Shell in Brazil 325 Mário Aquino Alves, Maria Paola Ometto, and Paulo Cesar Vaz Guimarães 21 Family Firms and Stakeholder Management: Crisis at Blue Bell Ice Cream 341 Cyrus B. Parks and Laura B. Cardinal 22 Risky Double-Spiral Sensemaking of Academic Capitalism 362 David M. Boje 23 Managing Risk in Healthcare Settings 378 Agnieszka Latuszynska, Trish Reay, and Eivor Oborn 24 Buncefield Stories: Organizational Learning and Remembering for Crisis Prevention 392 Jan Hayes and Sarah Maslen PART VI Current Issues 409 25 Spatial and Temporal Patterns in Global Enterprise Risk 411 Yossi Sheffi 26 The Development of Actionable Knowledge in Crisis Management 431 Carole Lalonde xi Contents 27 The Socio-Economic Approach to Management: Preventing Economic Crises by Harnessing Hidden Costs and Creating Sustainable Productivity 447 Marc Bonnet, Amandine Savall, Henri Savall and Véronique Zardet 28 Why Crisis Management Must Go Global, and How to Begin 464 Christine M. Pearson PART VII Dialogue and Commentary on the Future of Risk, Crisis and Emergency Management 475 29 Making Markets for Uninsured Risk: Protection Gap Entities (PGEs) as Risk-Processing Organizations in Society 477 Paula Jarzabkowski and Konstantinos Chalkias 30 Risks of Addressing vs. Ignoring Our Biggest Societal Problems: When and How Moon Shots Make Sense 481 Sim B. Sitkin, C. Chet Miller, and Kelly E. See 31 Managing for the Future: A Commentary on Crisis Management Research 486 Kathleen M. Sutcliffe 32 From Risk Management to (Corporate)