The Perception of Crisis by Greek SMEs and its Impact on Managerial Practices

Abstract

Abstract Although there are many definitions, crises are considered as unusual events that threaten basic structures, introduce high uncertainty and impose time pressures in decision making. In the field of business and management, a substantial body of research has been produced on corporate crisis preparedness and response; however, empirical evidence on the impact of crisis on Small and Medium sized Enterprises is limited. Companies have different levels of vulnerability according to their economic standing and positioning in the market. In addition, perceived uncertainty which influences managers’ actions does not always coincide with actual environmental uncertainty. The purpose of this study is, focusing on a sample of Greek companies operating in various economic sectors, to present a preliminary investigation on the impact of crisis on the choice of managerial practices, innovation and formalization. The financial strength and competitive advantage of companies as well as managers’ perceptions regarding environmental uncertainty and expectations about the future of the crisis will be presented since they have been found to influence understanding and shape courses of action.