Sensemaking in crisis: An exploration among strategic leaders in small businesses

Abstract

The small business sector contributes significantly to driving the economy through the creation of job opportunities. Already constrained with limited resources, the sector has felt the impact of crises such as the Covid_19 pandemic. It is therefore up to the strategic leaders in the small businesses to ensure sound leadership during a crisis for business sustainability. The purpose of this research is to explore how the strategic leaders in the small businesses identify their role in sensemaking in a crisis as part of their strategic leadership role. Based on Weick’s sense-making theory, this research contributes to the sensemaking body of knowledge, and it extends strategic leadership in crisis literature. The study followed a qualitative method and an exploratory approach in analysing the small business strategic leaders’ lived experiences of sensemaking in a crisis. A total of 16 in-depth semi-structured interviews were conducted virtually with the small business strategic leaders from various industries. This research found that the small business strategic leaders employ a cognitive process and social interaction approaches as enabling strategies in a crisis. The cognitive process of sensemaking encompasses using the current knowledge and experience (existing cognitive frames). Should the existing knowledge and experience not deliver the desired outcome, then they employ intuition as well as trial-and-error (experimental) strategies. Furthermore, considering that sensemaking is a socially rooted phenomenon, the participants interact with the environment, as well as with the internal and the external stakeholders to reinforce the sensemaking capacity. This is more so considering the negative emotions and the lack of social support, that are identified in this research that hinder the strategic leaders’ capacity to make sense of a crisis. This research has therefore provided an understanding of how organisations can bolster sensemaking during crises. Additionally, a conceptual framework that articulates the key constructs and insights into the sensemaking role of the small business strategic leaders in a crisis is another outcome of this research. The management can advance sensemaking by, developing knowledge and experience, strengthening intuitive and experimental decision-making, providing mentorship for strategic leaders, and sharpening environment awareness as well as through stakeholder management skills. Finally, as a limitation to the research, most participants shared their Covid_19 related experiences thus the research outcomes may be biased and skewed towards one crisis type.