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Somebody That I Used to Know: The Immediate and Long-Term Effects of Social Identity in Post-disaster Business Communities

DOI:10.1007/s10551-019-04131-w
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Jenni Dinger
Jenni Dinger
Jenni Dinger
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Michael Conger at Miami University
Michael Conger
David R. Hekman at University of Colorado Boulder
David R. Hekman
Carla Bustamante at Universidad Adolfo Ibáñez
Carla Bustamante
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The frequency and severity of natural disasters and extreme weather events are increasing, taking a dramatic economic and relational toll on the communities they strike. Given the critical role that entrepreneurship plays in a community’s viability, it is necessary to understand how small business owners respond to these events and move forward over time. This study explores the long-term dynamics and trajectory of individuals within the broader business community following a natural disaster, paying particular attention to the influence of social identity. Results suggest that the community identity changes over the course of recovery and rebuilding, underscoring the need for a holistic approach so that intervening agencies can achieve the sustainable economic recovery desired.
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Vol.:(0123456789)
1 3
Journal of Business Ethics (2020) 166:115–141
https://doi.org/10.1007/s10551-019-04131-w
ORIGINAL PAPER
Somebody That I Used toKnow: The Immediate andLong-Term Eects
ofSocial Identity inPost-disaster Business Communities
JenniDinger1· MichaelConger2· DavidHekman3· CarlaBustamante4
Received: 15 May 2018 / Accepted: 18 February 2019 / Published online: 26 February 2019
© Springer Nature B.V. 2019
Abstract
The frequency and severity of natural disasters and extreme weather events are increasing, taking a dramatic economic and
relational toll on the communities they strike. Given the critical role that entrepreneurship plays in a community’s viability,
it is necessary to understand how small business owners respond to these events and move forward over time. This study
explores the long-term dynamics and trajectory of individuals within the broader business community following a natural
disaster, paying particular attention to the influence of social identity. Results suggest that the community identity changes
over the course of recovery and rebuilding, underscoring the need for a holistic approach so that intervening agencies can
achieve the sustainable economic recovery desired.
Keywords Entrepreneurship· Natural disaster· Crises· Social identity· Community
Introduction
Following a natural disaster, entrepreneurs are often quick
to equate their own resolve to the community as a whole,
becoming visible champions in campaigns to keep “Hou-
ston Strong” or proclaim “I am Joplin” (Dinger etal. 2012).
Indeed, early work in this context suggests that entrepre-
neurs’ intentions and actions in the wake of disaster are
often shaped by social capital and their sense of attachment
to the focal community (Chamlee-Wright and Storr 2009a,
b; Grube and Storr 2018; Storr etal. 2017). Interestingly,
these declarations of solidarity are often made long before
the entrepreneur can possibly know the likelihood of their
own or their community’s success. This is especially true in
places like the USA where disaster recovery is typically pro-
vided through a patchwork of federal, state, philanthropic,
and private actors and varies greatly between communities
depending on economic, political, and social conditions
at the time. As a result, it is rarely a given that a business
destroyed in a natural disaster will be restarted as a matter
of course. For all of these reasons, identifying and pursuing
entrepreneurial opportunity in the wake of a natural disaster
is far from a purely rational assessment of resource avail-
ability, market demand, or profit potential, and instead may
be closely linked with their community and social cogni-
tive factors that define their relationship with and within
it. Moreover, the actions of individual entrepreneurs after a
disaster are often importantly linked to outcomes for others
in the community. For example, capital and other resources
directed toward rebuilding businesses may positively or
negatively affect the flow of resources toward other relief
efforts. Likewise, the decision whether to rebuild a business
in a town center or high street (a popular restaurant or pub,
Electronic supplementary material The online version of this
article (https ://doi.org/10.1007/s1055 1-019-04131 -w) contains
supplementary material, which is available to authorized users.
* Jenni Dinger
jdinger@suffolk.edu
Michael Conger
michael.conger@miamioh.edu
David Hekman
David.hekman@colorado.edu
Carla Bustamante
carla.bustamante@uai.cl
1 Management andEntrepreneurship, Sawyer Business
School, Suffolk University, 73 Tremont Street, Office 7055,
Boston, MA02108, USA
2 Institute forEntrepreneurship, Farmer School ofBusiness,
Miami University, Oxford, USA
3 Management andEntrepreneurship, Leeds School
ofBusiness, University ofColorado, Boulder, USA
4 Management andEntrepreneurship, Universidad Adolfo
Ibanez, Santiago, Chile
Content courtesy of Springer Nature, terms of use apply. Rights reserved.
... While COVID-19 and the 2007-2008 global financial crisis take on the majority of scholarly interest, there are also other types of crises that contribute to a more contextualized understanding of entrepreneurship in times of crisis. For example, studies focusing on the long-term dynamics and the trajectory of individuals within the broader business community following a natural disaster (Dinger et al. 2019), the effects on emotional intelligence after suffering local shocks from an economic recession within a developing economy (Quintillán and Peña-Legazkue 2019), and the entrepreneurial activities in communities under continuous threat of the Calbuco volcano eruptions in 2015 and 2016 in Chile (Muñoz et al. 2019). From a contextualized perspective, there is merit in reviewing prior literature on entrepreneurship within a wide range of crises and in distinguishing the different types of crises, as such an approach invites us to have a more layered understanding of entrepreneurship in times of crisis where we might otherwise expect sameness across different types of crises (Welter et al. 2019). ...
... Natural catastrophes, as opposed to crises with human or technological precursors, cause unforeseen change, ranging from social transformations to changes in the role of the individual in entrepreneurship (Bustamante et al. 2020;Dinger et al. 2019). ...
... Most of the literature focused solely on the results of analyzing entrepreneurship during times of crisis without providing a sufficient theoretical explanation of the relationship between entrepreneurship and crises. Two exceptions include the studies by Dinger et al. (2019) and Bărbulescu et al. (2021). These studies demonstrated an effort to explain the manifestation of entrepreneurship in times of crisis, and they proposed hypotheses that harmoniously described the traits of both entrepreneurship and crises. ...
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View
... Even in a commercial setting, Dinger et al. (2020) demonstrate that the experience of natural disaster spurs local business owners in small communities to engage in post-disaster business rebuilding efforts for a highly non-economic reason, prioritizing people over money. Children who are survivors of natural disasters also display prosocial behaviors; for example, Li et al. (2013) find that the experience of an earthquake immediately increased altruistic giving among 9-year-old children. ...
... This suggests that natural disaster enhances altruism even among young children. Consistent with the premise of self-categorization theory, the individual's tendency to help others and increase engagement in prosocial actions following the experience of natural disaster has been explained by the emergent sense of unity (Ntontis et al., 2018), common fate (Drury et al., 2016;Maki et al., 2019), and a shared social identity with others (Dinger et al., 2020;Maki et al., 2019), reflecting the shift in values from the egocentric to the allocentric direction (Oishi et al., 2017). ...
... Fourth, investigations of the influences of the natural disaster experience have largely centered on adults as research subjects in both the business (Bernile et al., 2021;Bui et al., 2019;De Blasio et al., 2018;Dessaint & Matray, 2017;Dinger et al., 2020) and non-business domains (Drury et al., 2016;Maki et al., 2019;Ntontis et al., 2018;Oishi et al., 2017). However, an investigation of the long-lasting effect of the childhood experience of natural disaster on prosocial behaviors toward the community including CSR has been largely missing (Masten & Narayan, 2012;Masten & Osofsky, 2010;Peek et al., 2018). ...
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Interest in the drivers of firms’ corporate social responsibility (CSR) is growing. However, little is known about the influence of a CEO’s childhood experience of natural disasters on CSR. Using archival data, we explore this relationship by offering three mechanisms that may account for how the CEO’s childhood experience of natural disaster is related to their CSR. More specifically, while prior research has established a positive relationship based on the post-traumatic growth theory, we show that the dual mechanisms of prosocial values and a CEO’s risk aversion explain the positive relationship. We further find that the positive relationship is stronger (1) when CEOs have longer career horizons and (2) when community social capital is high. This study contributes to both research and managerial implications on the topics of CEO’s childhood experience and CSR. In particular, this study advances the upper echelon theory by revealing that a CEO’s childhood experience of natural disaster is a useful yet relatively underexplored variable that can help explain the substantial variations in firms’ CSR. Moreover, we emphasize that a CEO’s career horizons and level of community social capital are important variables that further amplify the effect of a CEO’s childhood experience of natural disaster on the firm’s CSR commitment.
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... First, entrepreneurial actors often operate in resource scarce environments, including crises (Corbett & Katz, 2013;Williams & Shepherd, 2018). Despite being able to draw on heightened solidarity to help other locals in a crisis, emergent citizen groups are immediately confronted with damaged infrastructure and other resource conditions outside their control and beyond their existing knowledge stocks (Bishop, 2019;Dinger et al., 2020;Shepherd & Williams, 2014;Stevenson & Jarillo, 1990). Thus, entrepreneurial actors must cope with varying levels of constraint across a combination of resource types, including financial, human, physical, and social resources (Clough et al., 2019;Grichnik et al., 2014;Welter et al., 2018). ...
... Data sources include field participation and observation, OSMS documents and survey reports, secondary documentation, and interviews. Following the lead of other crisis research scholars, we engaged in preliminary field work to understand the phenomenon of interest (Dinger et al., 2020;Williams & Shepherd, 2021). In March 2020, we began observing and discussing how citizens responded to the pandemic. ...
... Ultimately, some citizens viewed their efforts not only as temporary organizations that had served a short-term purpose, but also as a mode of collective action that could be reactivated (Bakker et al., 2016). Others viewed the volunteer PPE effort more narrowly as an achievement unto itself that allowed citizens to feel like they made a difference early on, before the shared sense of civic responsibility waned (Dinger et al., 2020). ...
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View
... First, entrepreneurial actors often operate in resource scarce environments, including crises (Corbett & Katz, 2013;Williams & Shepherd, 2018). Despite being able to draw on heightened solidarity to help other locals in a crisis, emergent citizen groups are immediately confronted with damaged infrastructure and other resource conditions outside their control and beyond their existing knowledge stocks (Bishop, 2019;Dinger et al., 2020;Shepherd & Williams, 2014;Stevenson & Jarillo, 1990). Thus, entrepreneurial actors must cope with varying levels of constraint across a combination of resource types, including financial, human, physical, and social resources (Clough et al., 2019;Grichnik et al., 2014;Welter et al., 2018). ...
... Data sources include field participation and observation, OSMS documents and survey reports, secondary documentation, and interviews. Following the lead of other crisis research scholars, we engaged in preliminary field work to understand the phenomenon of interest (Dinger et al., 2020;Williams & Shepherd, 2021). In March 2020, we began observing and discussing how citizens responded to the pandemic. ...
... Ultimately, some citizens viewed their efforts not only as temporary organizations that had served a short-term purpose, but also as a mode of collective action that could be reactivated (Bakker et al., 2016). Others viewed the volunteer PPE effort more narrowly as an achievement unto itself that allowed citizens to feel like they made a difference early on, before the shared sense of civic responsibility waned (Dinger et al., 2020). ...
Pandemic makers: How citizen groups mobilized resources to meet local needs in a global health crisis
Preprint
Full-text available
  • Oct 2022
The enormous scale of suffering, breadth of societal impact, and ongoing uncertainty wrought by the COVID-19 pandemic introduced dynamics seldom examined in the crisis entrepreneurship literature. Previous research indicates that when a crisis causes a failure of public goods, spontaneous citizen ventures often emerge to leverage unique local knowledge to rapidly customize abundant external resources to meet immediate needs. However, as outsiders, emergent citizen groups responding to the dire shortage of personal protective equipment at the onset of COVID-19 lacked local knowledge and legitimacy. In this study, we examine how entrepreneurial citizens mobilized collective resources in attempts to gain acceptance and meet local needs amid the urgency of the pandemic. Through longitudinal case studies of citizen groups connected to makerspaces in four U.S. cities, we study how they adapted to address the resource and legitimacy limitations they encountered. We identify three mechanisms—augmenting, circumventing, and attenuating—that helped transient citizen groups calibrate their resource mobilization based on what they learned over time. We highlight how extreme temporality imposes limits on resourcefulness and legitimation, making it critical for collective entrepreneurs to learn when to work within their limitations rather than try to overcome them. </p
View
... First, entrepreneurial actors often operate in resource scarce environments, including crises (Corbett & Katz, 2013;Williams & Shepherd, 2018). Despite being able to draw on heightened solidarity to help other locals in a crisis, emergent citizen groups are immediately confronted with damaged infrastructure and other resource conditions outside their control and beyond their existing knowledge stocks (Bishop, 2019;Dinger et al., 2020;Shepherd & Williams, 2014;Stevenson & Jarillo, 1990). Thus, entrepreneurial actors must cope with varying levels of constraint across a combination of resource types, including financial, human, physical, and social resources (Clough et al., 2019;Grichnik et al., 2014;Welter et al., 2018). ...
... Data sources include field participation and observation, OSMS documents and survey reports, secondary documentation, and interviews. Following the lead of other crisis research scholars, we engaged in preliminary field work to understand the phenomenon of interest (Dinger et al., 2020;Williams & Shepherd, 2021). In March 2020, we began observing and discussing how citizens responded to the pandemic. ...
... Ultimately, some citizens viewed their efforts not only as temporary organizations that had served a short-term purpose, but also as a mode of collective action that could be reactivated (Bakker et al., 2016). Others viewed the volunteer PPE effort more narrowly as an achievement unto itself that allowed citizens to feel like they made a difference early on, before the shared sense of civic responsibility waned (Dinger et al., 2020). ...
Pandemic makers: How citizen groups mobilized resources to meet local needs in a global health crisis
Preprint
Full-text available
  • Oct 2022
p>The enormous scale of suffering, breadth of societal impact, and ongoing uncertainty wrought by the COVID-19 pandemic introduced dynamics seldom examined in the crisis entrepreneurship literature. Previous research indicates that when a crisis causes a failure of public goods, spontaneous citizen ventures often emerge to leverage unique local knowledge to rapidly customize abundant external resources to meet immediate needs. However, as outsiders, emergent citizen groups responding to the dire shortage of personal protective equipment at the onset of COVID-19 lacked local knowledge and legitimacy. In this study, we examine how entrepreneurial citizens mobilized collective resources in attempts to gain acceptance and meet local needs amid the urgency of the pandemic. Through longitudinal case studies of citizen groups connected to makerspaces in four U.S. cities, we study how they adapted to address the resource and legitimacy limitations they encountered. We identify three mechanisms—augmenting, circumventing, and attenuating—that helped transient citizen groups calibrate their resource mobilization based on what they learned over time. We highlight how extreme temporality imposes limits on resourcefulness and legitimation, making it critical for collective entrepreneurs to learn when to work within their limitations rather than try to overcome them. </p
View
... The largest share of the studies we analyzed treats communities as beneficiaries of entrepreneurship, that is, recipients of the value created by entrepreneurial initiatives ( There is also a distinction in the literature between benefits that are intentionally created for a community (e.g., Kimmel and Hull, 2012;Muñoz and Dimov, 2015;Tobias et al., 2013), and unintended (e.g., Dinger et al., 2020;Zahra and Wright, 2016). Intentional benefits are either direct-such as the provision of resources needed to identify and deploy solutions to alleviate community problems (e.g., Ansari et al., 2012;Barinaga, 2017;Berglund et al., 2016)-or indirect-fostering an entrepreneurial culture (e.g., Kannothra et al., 2018;McKeever et al., 2015), the "entrepreneurization of a community" (Marti et al., 2013, p. 11), or building capacity which can lead to heightened resilience at a community level (e.g., Bakas, 2017;Gray et al., 2014;Hertel et al., 2019;Linnenluecke and McKnight, 2017). ...
... This trend is based on research suggesting that a community's capacity to engage in entrepreneurship is key to its ability to bounce back from shocks and stresses (Rao and Greve, 2018), and to generate sustainable community development outcomes (Markley et al., 2015). While the creation of these direct and indirect benefits happen deliberately, unintended beneficial consequences also emerge as by-products of entrepreneurship, for example, through strengthening the local economy (e.g., Dinger et al., 2020;Zahra and Wright, 2016), or enhancing the social capital of a given community by consolidating its existing ties or creating new ties with other more resource-rich networks (Ansari et al., 2012). ...
... For instance, Dana and Light (2011) report accounts of entrepreneurs coming up with innovative but culturally destructive market-based alternatives that shift subsistence farmers, hunters and gatherers, herders, and fisher folk into the paid labor force. Finally, entrepreneurship can also sew division and catalyze fundamental (and unintended) changes in the community's social structure over time (Dinger et al., 2020). ...
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... In fact, previous research provides initial evidence that grand challenges do influence (social) identities. For instance, floods and earthquakes can lead to a shared common social identity (Ntontis et al. 2021;Drury et al. 2016), and disaster recovery periods induce parallel identity processes at the individual and community level and spur entrepreneurial opportunities (Dinger et al. 2020). Other examples of relevant grand challenges are natural disasters in general (Brück, Llussá, and Tavares 2011;Nelson and Lima 2020) or the arrival of refugees (Bauer, Lofstrom, and Zimmermann 2000). ...
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View
... In particular, outbreaks force actors to rethink many, and sometimes all, production, organization, and distribution processes. In contrast, the first response of the economic agents after other disasters is often to preserve, recover, and rebuild the previously existing situation (Dinger et al., 2020). Finally, epidemics lead to social distance and isolation for a considerable span of time. ...
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Social Identity Theory
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Menjelaskan teori identitas sosial
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The importance of values to the social entrepreneur is widely acknowledged in the social entrepreneurship literature. However, in-depth discussion of values and how they motivate the social entrepreneur is extremely rare. Most studies of entrepreneurial smotivation focus solely on economic incentives and psychological constructs such as self-efficacy and the need for personal achievement. In this chapter, I examine the question of how an entrepreneur’s values influence the kind of venture she (or he) will create. I draw on values theories from social psychology to explain the role of values as drivers of entrepreneurial action with the purpose of creating social or environmental benefits over and above economic benefits. I theorize that entrepreneurs will place varying levels of priority on values focused on either self-enhancement or self-transcendence and that these prioritizations will strongly influence the importance they place on creating economic or social benefits through their ventures. I provide a framework for understanding how values motivate social entrepreneurs to create non-economic value. This chapter advances the study of entrepreneurship by reintroducing values as an important topic for research. I show how values may provide a way to determine who will become a social entrepreneur and who will not. Also I demonstrate that, by understanding the unique value priorities and blended social/economic goals of social entrepreneurs, social entrepreneurship research may broaden our understanding of entrepreneurship and the role of values in entrepreneurship more broadly. Finally, I explore the practical implications of understanding values for the social entrepreneur. Considering her own value priorities and those of her firm’s stakeholders is critical to the success of the social entrepreneur and her venture.
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