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Businesses and their community in times of COVID-19: a stakeholder theory approach

David Wai Lun Ng (School of Management and Marketing, Curtin University, Singapore, Singapore)
Abel Duarte Alonso (School of Business and Management, RMIT International University, Ho Chi Minh City, Vietnam)
Alessandro Bressan (Department of Management, The University of Notre Dame Australia – Sydney Campus Broadway, Broadway, Australia)
Oanh Thi Kim Vu (School of Business and Management, RMIT International University – Hanoi City Campus, Hanoi, Vietnam)
Thanh Duc Tran (Faculty of Tourism, Phenikaa University, Hanoi, Vietnam)
Erhan Atay (School of Business and Management, RMIT International University – Hanoi City Campus, Hanoi, Vietnam)

European Business Review

ISSN: 0955-534X

Article publication date: 31 May 2022

Issue publication date: 5 October 2022

583

Abstract

Purpose

The purpose of this study is to build an understanding of how firms operate under the COVID-19 crisis. Specifically, the study examines the significance of firms’ survival for their surrounding community, business–community relations during this severe situation and factors helping firms address this unprecedented challenge. The conceptual tenets of stakeholder theory are considered.

Design/methodology/approach

A qualitative data collection approach was selected, with face-to-face and online interviews undertaken with owners and managers of 33 firms operating in Singapore.

Findings

Firstly, while survival during the current unprecedented crisis is perceived to be most important for the firms’ employees, owners/managers also perceive domino effects on other companies working alongside the participating firms, as well as effects on clients and suppliers. Secondly, increased collaboration with industry, stronger partnerships with suppliers and business partners and closer relationships with staff are highlighted during the crisis. Thirdly, key factors helping firms’ survival in the initial year of the crisis included: a clear goal; a cohesive/nimble staff team; reinventing, adapting and being resilient; and family support and management support.

Originality/value

This study contributes empirically and conceptually to the literature on firm adaptation and firm–community relationships during a severe crisis. Empirically, the findings and related dimensions provide practical guidance concerning the interdependence between firms and their stakeholders. Conceptually, the inductive analysis, which enabled the development of a theoretical framework, illustrates the relationships between the study’s emerging dimensions and those predicated by stakeholder theory, namely, the descriptive, instrumental, normative and managerial.

Keywords

Acknowledgements

No conflict of interest has been noted/identified in this study.

Citation

Ng, D.W.L., Duarte Alonso, A., Bressan, A., Vu, O.T.K., Tran, T.D. and Atay, E. (2022), "Businesses and their community in times of COVID-19: a stakeholder theory approach", European Business Review, Vol. 34 No. 6, pp. 798-818. https://doi.org/10.1108/EBR-03-2022-0060

Publisher

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Emerald Publishing Limited

Copyright © 2022, Emerald Publishing Limited

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