Crisis management as practice in small‐ and medium‐sized enterprises during the first period of COVID‐19

This article draws attention to the social context and working methods in crisis management. Based on 1000 interviews with business leaders in Swedish small‐ and medium‐sized enterprises (SMEs), we analyze crisis management in practice and ask: What social contexts do business leaders use in crisis management, and what working methods do they rely on? Most companies in this study do not have any form of crisis group; rather, they deal with issues reactively as they occur. Few of the companies work continuously with a crisis plan and only slightly more than half of those that have crisis plans report that it has been helpful in dealing with the COVID‐19 situation. The study concludes that Swedish SMEs seem reliant upon a process that has an emerging nature whereby decisions are largely based on gut feeling. However, the companies in our sample that experienced a significant revenue decline due to the COVID‐19 situation report that they employ a more centralized and deductive approach with reports and documents as a basis for their work. The study contributes to a developed understanding of how crisis management works in practice.