Innovative Crisis Management in Construction: Approaches and the Process

Abstract

Crisis management is a process that includes catching and evaluating crisis signals and needs to take and implement necessary precautions in order to overcome a crisis with a minimal damage. Detecting the early warning signals of a crisis contributes firms to hinder the occurrence of the crisis and to survive without huge financial losses. Other factors that contribute construction firms to survive with zero defect can be listed as follows: (i) catching indirect signals before a crisis, (ii) developing proactive methods to defend themselves against the crisis by means of these signals, (iii) taking the crisis under control, (iv) taking required measures after the crisis for the recovery of the firm, and lastly (v) recording the lessons learned from the crisis. Construction firms that can successfully manage a crisis can quit it with a minimum loss and can expand their market shares after the crisis. In other words, firms that can escape from a crisis with zero or minimum damage may strategically have competitive advantages over existing rivals. Considering all these issues, this study describes the concept of crisis management in terms of the construction industry and introduces related objectives and characteristics. In addition, both innovative crisis management approaches and the corresponding process were discussed in detail from the perspective of construction companies. In fact, this is a virgin area in the construction management literature and thus can contribute to the creative and innovative management of companies under potential crises in micro and macro levels. Consequently, this study attempts to reveal how construction firms can manage crises better and turn to their former positions in the short term through innovation-based means.