The purpose of this study is to understand how managers in entrepreneurial small businesses (ESBs) deal with exogenous (macro) crises, particularly in relation to the breakdown of intra- and inter-stakeholder trust.
Utilising a qualitative approach, we draw lessons from Greek ESBs greatly affected by the 2008–2019 economic and 2020–2022 health crises. Based on 54 in-depth, longitudinal investigations of four ESBs at three time points, this research offers insights on overcoming organisation-stakeholder trust breakdowns that emerg due to crises.
The findings suggest that macro-level crises undermined the foundations of trust-based relationships, creating a trust gap between organisations and their stakeholders and threatening ESBs’ business practices. Our framework suggests that ESBs repair trust relationships, both intra- and inter-organisational, through sense-making of trust breakdown, implementing trust-repair strategies, and then maintaining trust in those stakeholder relationships through challenging crisis periods.
Practitioners can use the suggested framework in relation to overcoming intra- and inter-stakeholder trust breakdowns during macro-level crises.
The paper offers a new framework that can aid entrepreneurs and managers in making sense of repairing and maintaining trust in stakeholder relationships during turbulent times.
