Investigating tensions experienced by decision-makers during a business rescue event

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Authors

Du Toit, A.C. (Andria)
Pretorius, Marius

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AOSIS

Abstract

BACKGROUND : Practice has shown that decision-makers experience various tensions during a business rescue event, which adds to the complexity of their decision-making. Even though business rescue has been operational for more than a decade, decision-makers require training and development beyond the scope of the legal and finance realms to cope with the related tensions. AIM : This study endeavoured to report on the tensions experienced by decision-makers, classify them into puzzles, dilemmas, trade-offs and/or paradoxes, and to identify practical responses to the most commonly experienced tensions. SETTING : The study was conducted in South Africa and made use of decision-makers in the field of business rescue. METHODS : An interpretative phenomenological analysis was completed using 12 exceptionally experienced decision-makers. A multi-method approach was employed using in-depth interviews and follow-up questionnaires, validated with the literature after the completion of a pre-test. RESULTS : Findings reported 16 major tensions, consisting of one puzzle, two dilemmas, four trade-offs and nine paradoxes with appropriate responses used in practice by participants. CONCLUSION : Significant findings include the differentiation in response to tensions based on the level of sophistication of stakeholders involved, the implementation of a team approach to decision-making and the use of empathy to decrease tension. CONTRIBUTION : An insider’s perspective is provided into tensions experienced during a business rescue event, which may assist in the training of novice decision-makers. Participants used anecdotal evidence to verbalise their approaches and/or strategies to managing tension, which can be dissected and used to collate shared practice among decision-makers.

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DATA AVAILABILITY : Data sharing is not applicable to this article as no new data were created or analysed in this study

Keywords

Business rescue, Tension, Puzzles, Dilemma, Trade-off, Paradox, Response

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Citation

Du Toit, A.C. & Pretorius, M., 2023, ‘Investigating tensions experienced by decision-makers during a business rescue event’, Southern African Journal of Entrepreneurship and Small Business Management 15(1), a714. https://DOI.org/10.4102/sajesbm.v15i1.714.