Crisis Management and Business Continuity: Lessons from Global Disruptions
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Crisis management (CM) and business continuity (BC) strategies are vital in ensuring organizational performance and consumer confidence due to the global shocks like a pandemic and supply chain collapse. This paper discusses the effect of crisis communication transparency in consumer trust and purchasing intention in such disruptions, and the moderating effect of digital engagement in the association. The quantitative data were obtained through a sequential explanatory mixed-methods design (MM). That is, a survey of 300 consumers was conducted, supplemented with a qualitative analysis of 15 industry executives. The measurement model was validated via confirmatory factor analysis (CFA; excellent fit, Comparative Fit Index, CFI = 0.95; Root Mean Square Error of Approximation, RMSEA = 0.047), whereas structural equation modeling (SEM) showed that transparency has a positive effect on consumer trust (beta, 0.68, p < 0.001), which is very strongly related to purchase intention (beta, 0.74, p < 0.001). There was indeed strong moderation of the transparency trust relationship (interaction 0.27, p = 0.008) and this increased trust formation. The model has a variance of 65 percent in consumer trust and 69 percent in purchase intention. Transparent communication, leadership agility, and strategic digital engagement stood out in qualitative findings as a requisite to a good crisis response and business continuity. These findings highlight the importance of clear crisis communication, which is enabled by vigorous digital interaction, to generate consumer trust and maintain purchase interest, thus increasing organizational resilience in the case of global disturbances.
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