Equilibrium Point for a Stakeholder Management Strategy in Crisis Episodes: the Case of a Crisis in a Food Processing Plant

Abstract

The aim of this paper is to shed light on the way organizations that collaborate in multi-stakeholder networks organize their crisis management readiness. It argues that crisis management practices differ significantly based on whether or not organizations are supply or demand over-dependent. In equilibrium between demand and supply, an organization is able to rely on non-linear connectedness and interdependence to foster relationships in the supply chain during a crisis. In this paper, we analyze the case of a food safety crisis that occurred in 2008 at a Canadian-based processing plant and challenge the current conventions. Finally, conclusions concerning the implementation of the framework together with limitations and future research directions are presented.