Chapter 4: Emergency
entrepreneurship: creative organizing in
the eye of the storm
Bengt Johannisson and Lena Olaison
Introduction
Entrepreneurship is an elusive phenomenon that does not just appear as new
business venturing in the market. Within the public sector there is a call for
more entrepreneurial bureaucrats (du Gay, 2001) and entrepreneurship is
entering the business schools as well as the educational system at large from the
university to the compulsory school (Hjorth and Johannisson, 2007) with the
political ambition to make all of Europe more entrepreneurial (Lambrecht and
Pirnay, 2005). Accordingly, studies on different entrepreneurial endeavours tend
to end up with prefixes, such as team entrepreneurship (Stewart, 1989),
collective entrepreneurship (Johannisson, 2003), community entrepreneurship
(Johannisson and Nilsson, l989; Johnstone and Lionais, 2004), social
entrepreneurship (Steyaert and Hjorth, 2006) and public entrepreneurship
(Hjorth and Bjerke, 2006). This suggests that it is not possible to conclusively
generate models and/or conceptualize entrepreneurship once and for all.
Nonetheless, two perspectives on entrepreneurship are frequently used in the
literature, namely entrepreneurship as a special kind of management – from
Mintzberg (1973) to Shane (2003), and entrepreneurship as forms of social
creativity (Hjorth et al., 2003; Gartner et al., 2003). In this chapter
entrepreneurship is approached as a societal phenomenon practising creative
organizing1. We especially associate entrepreneurship with imaginative ways of
dealing with ruptures in the everyday life context. The ‘prosaic view’ of
entrepreneurship as suggested by Steyaert (2004) is then interesting to relate to.
1
In previous work we have enquired into the interface between entrepreneurship and social
capital as reflecting/reflected in reputation/mutual trust and a rationality based on care (see
Johannisson and Olaison, 2007).
With this brief review of optional images of entrepreneurship in mind, we want
to invite the reader to the drama that the Hurricane Gudrun enacted in Sweden in
2005. Late on the evening of 8 January a heavy storm struck Kronoberg County
and its neighbouring region in the south of Sweden, causing blocked roads,
tearing power lines into pieces, destroying property and incapacitating
institutions responsible for the infrastructure. Hitting 5 per cent of the forestry
area of Sweden, Gudrun tore down 80 million cubic metres, equal to one year’s
lumbering for the entire Swedish forestry industry. In total 253 000 households
and organizations were left without power because of Gudrun, the majority also
without any telephone connection. Gudrun caused by far the greatest damage
ever to the elaborate Swedish infrastructure. The public institutions and other
formal market organizations did not have the resources, capabilities or power to
cope with the crisis, especially in the rural areas. Instead, a number of initiatives
were taken by civic organizations, communities and individuals that were tied to
the place.
It is here, in the in betweens of different organizational settings, that our story
takes place. We propose that ruptures such as the one caused by Gudrun may
initiate processes that uncover and (re)produce entrepreneurship which remain
invisible when ‘business as usual’ rules in society. The purpose of this chapter is
thus to enquire into localized creative organizing in the face of (natural)
catastrophes and to conceptualize ‘emergence entrepreneurship’ accordingly.
Next we elaborate upon our understanding(s) of entrepreneurship and how this
relates to organization/organizing. In the following section we present the
methodology that is practised in the field studies and then the empirical accounts
are described. Revisiting the images of entrepreneurship and other
understandings of organizing in dramatic settings, we close our discourse in the
last section with a tentative conceptualization of ‘emergency entrepreneurship’.
Alternative images of entrepreneurship
Mainstream research, here addressed as ‘opportunity-driven’, presents
entrepreneurship as a proactive rational economic activity, a strategy aiming to
systematically identify and evaluate existing opportunities, preferably radical
innovations, on the market and allocate the resources needed in such a way that
the opportunities chosen are efficiently exploited. This strictly instrumental view
of entrepreneurship suggests that boundaries in social space are intentionally
crossed by, for example, the proactive introduction of new products or processes
or by the opening up of new product or factor markets (for example, Schumpeter
1911/1934). Bounded rationality due to lack of information concerning available
opportunities and resources, though, means that entrepreneurial venturing is
associated with risk. Reputation/trustworthiness and legitimacy are in this
perspective considered as means of accessing resources that would otherwise not
be available, a rationale that Starr and MacMillan (1990) address as ‘social
contracting’. This concern for systematic renewal and change, organized in a
new means-end framework (Shane, 2003), is what makes entrepreneurship stand
out and yet remain in the management family. Table 4.1 summarizes the generic
aspects of entrepreneurship that we have illustrated with the opportunity-driven
view.
Table 4.1: Three modes of entrepreneurship – generic features.
Aspect
Opportunity-driven
Entrepreneurship
Enactive
entrepreneurship
Prosaic
entrepreneurship
Origin of initiative
Existing opportunities
in the market
Coincidences and
Challenges in
enacted environments everyday life
Process
characteristics
‘Boundedly rational’
exploitation
Playful
experimentation
Generic coping
Pro-action taking risk
Interaction in order to Interaction in order
exploit ambiguity
to keep uncertainty at
bay
Casual coping with
problems/opportuniti
es
Role and sources of Resourcing relying on
social capital
calculated trust
Relating through
mutual commitment
to dialogue
Reproducing by way
of collective identity
and blind trust
Organising
rationale
Social creativity
Daily activity and
interaction
New means-ends
framework
A contrasting image of entrepreneurship, here labelled ‘enactive
entrepreneurship’, associates entrepreneurship with social creativity on other
arenas besides the market. Whatever the setting, new opportunities are in this
perspective interactively enacted, instigated by coincidences and chance, yet
ultimately shaping new worlds for many (Spinosa, Flores and Dreyfus, 1997). In
a socially constructed world of becoming (Chia, 1995) entrepreneurship implies
coping with ambiguity (Johannisson, 1992; Weick, 1995). Entrepreneurial
processes are initiated by curiosity, organized by spontaneity and intrinsically
driven by passion and joy (Hjorth and Steyaert, 2003; Hjorth et al., 2003).
Opportunities to explore and associate tactics to exploit them emerge in parallel
(Gartner et al., 2003). This perspective on entrepreneurship shifts the focus from
organization to organizing, from formal structure to emergent process (Gartner,
Bird and Starr, 1992). Ventures crystallize out of personal networks, constituted
by genuine relations based on trust and defined as much existentially as
instrumentally, used as much for crafting individual and collective identity as
for actualizing new business (Johannisson, 2000). Entrepreneurship is
accompanied by a general belief in the good will of others and their commitment
to participating in dialogues for negotiating new realities.
Yet another, third, image of entrepreneurship is following Steyaert ‘prosaic
entrepreneurship’. Steyaert argues that
the everydayness of entrepreneurship refers as much to a mundane, and – why not –
even a boring posture as to a literary connotation where a prosaic – as in the novel –
addresses the actuality of becoming, its ongoing becoming effected through
conversational processes. (2004: 9)
Prosaic or mundane views on entrepreneurship focus, not on model building or
general concepts, but acknowledge the importance of ‘the everyday and the
ordinary, the familiar and the frequent, the customary and the accustomed, the
mediocre and the inferior’ (ibid.). All entrepreneurial processes certainly,
however path breaking, include routine activities just as all human beings as
adults occasionally engage in entrepreneurial processes. ‘Prosaic’
entrepreneurship at the firm and societal level, for example, appears in the
industrial district as a localized small-firm cluster. Westlund and Bolton
systematically dissect the concept of ‘localized social capital’, defined as
‘spatially defined norms, values, knowledge, preferences, and other social
attributes or qualities that are reflected in human relations’ (2003: 79), and its
relation to entrepreneurship. Entrepreneurship as organizing is then continuous
and carried by the district as a socially embedded collective of business units,
that is, not by individual firms (Johannisson, 2003). As traditional family
businesses, the latter are neither willing nor able to practise innovativeness and
growth.
However complex networking, interaction and organizing as conceptual
constructs present themselves, their (metaphorical) use obviously contributes to
our understanding of why and how entrepreneurship may be practised. While
opportunity-driven
and
enactive
entrepreneurship
both
associate
entrepreneurship with dramatic events that are instigated by strategically and
tactically alert individuals, prosaic entrepreneurship is hidden behind the
apparent uniformity of everyday life. In spite of this wide range of images of
entrepreneurship none of them, though, tells us what creative organizing may be
triggered by if communities which appear as dormant are challenged by an
external shock, an artificial or natural disaster like Gudrun.
Experiencing and studying a natural disaster
The empirical study was carried out over a ten-month period. In February and
March 2005, that is immediately after the disaster, the junior author jointly with
fellow master students interviewed ten persons involved in organizing in the
wake of the hurricane. We were looking for organizations, temporary or formal,
that became visible through their achievements in the restoration work. The aim
of the conversations was to find out what kind of organizing the dramatic event
had triggered: who got engaged, how, after whom and after what resources the
activities patterned themselves.
We think that there is a need for a narrative approach and contextually sensitive
accounts when trying to grasp how existing formal and informal structures may
enforce or hinder potential entrepreneurial initiatives in the face of disaster.
Soon enough we understood that our informants in the immediate aftermath of
the hurricane could provide no systematically reflected insights, ‘only’ stories.
Czarniawska (2004), though, argues that narratives represent modes of knowing
and communicating and, what is more, they may guide the enactment of the
storytellers’ future lives.
Listening to stories through the media and our personal networks we used our
personal contacts in the region to get access to local agents (civic associations,
authorities and small firms), national incorporated structures and also
intermediary organizations which bridge between the other two categories. It so
happens that all our ten interviewees are men. This bias does not only reveal that
the authors’ personal networks are dominated by men, but also that there were
mainly men working with the restoration after the hurricane. Obviously, we
have silenced some of the stories that might have been told by women2.
2
This is not to argue that women were not involved in the recovery process, but that their
roles remained less visible and that our approach did not invite them. For a discussion about
the representation of women in research and media reporting after natural disasters, see Childs
(2006).
In October and November 2005 the authors of this chapter together revisited
five of the original informants for further conversations. The informants were
then encouraged to reflect upon their own stories told in the aftermath of
Gudrun. We thus used quotations from the original interview to create a
conversation with the interlocutor concerning how they had experienced the
event back then and again ten months later. Since our conversations concerned
issues that were (and are) emotionally loaded, we allow our interlocutors to
speak when we communicated our field experiences.
Our interpretation of the agents’ immediate and retrospective experiences of the
hurricane was organized as follows. First, the two authors independently read
the raw interview texts in order to identify statements that reflected (creative)
coping with the dramatic events and consequently contributed to the
construction of entrepreneurship in such a setting. These primary interpretations
were then, according to each category of informants, jointly reflected upon by
us. The stories as presented and interpreted are subsequently analyzed further by
bringing in Lanzara’s (1983) notion of ‘ephemeral organizations’ and formal
(project organization and crisis management) organizations. Our conceptual and
empirical work and the images of temporary organizations are used to craft our
notion of ‘emergency entrepreneurship’. Our methodology obviously both
resembles and contrasts the Eisenhardt (1989) idea of generating theory out of
case/qualitative material. We stay with a proposed conceptualization of
‘emergency entrepreneurship’ that may inspire refinement by way of additional
theoretical and empirical work.
Tales of the field: copying with chaos in everyday life
The stories told by the informants are organized into five subsections according
to what agency they represent. We shortly summarize their stories accordingly.
First, we introduce a spokesman for a civic association representing a rural
community and experience how he dealt with the dramatically imposed rupture
in his everyday life. Then we listen to representatives of the public organizations
which are formally responsible for organizing and governing territorial space,
namely the financially strong Swedish municipalities. In the following two
subsections we encounter representatives of business organizations: a local
small firm and an external corporate structure, for which the area struck by
Gudrun is part of their market. Finally, we listen to the stories told by the
spokesmen for two intermediary organizations, which, due to their organizing
tactics and way of doing business, created new tasks for themselves, enforcing
their roles as bridges between different structures. The voices of each group of
agents are systematically reflected upon with respect to their way of organizing
and will be echoed in the last section for further analysis.
Civic associations taking charge
Anders Malmqvist, one of the organizers of an informal community group that
locally dealt with the emergency, has many stories to tell. On the morning after
the hurricane Malmqvist immediately joins other residents from his village who
were trying to make their way through the giant jackstraws of trees caused by
Gudrun. They keep working intensively, knowing that if they fail there will be
no way out of the village. In the evening, when they are about to give up, they
hear the persistent sound of a tractor somewhere from the other side of the
enormous mess of trees. Now convinced that somebody is trying to reach them,
they get energized and continue to work their chainsaws in the growing
darkness.
When the main roads are clear Malmqvist starts to discuss the restoration work
with a retired electrician from E.ON (the dominant power company in the South
of Sweden, a corporation that we will encounter again):
We asked ourselves: what do we need? We need to establish an information centre,
where we can collect information and co-ordinate resources; we must open the gas
station to secure fuel and reparations and we need to make sure that everyone
working can eat at least every four hours.
Malmqvist describes the organizing as an arena for acute problem-solving: ‘We
had no right to make decisions, and we didn’t. What we could do was to identify
a problem and bring together those who had resources to come up with
solutions’. Through the residents’ personal networks they could enact measures
even if these were not compatible with the formal norms: ‘I know that we broke
some regulations and maybe a law or two to get what we needed, but what could
we do?’
Reflections: The stories about the first initiatives after the hurricane tell us about
spontaneous and immediate organizing. There was no time to discuss or reflect
upon the situation, since people were often both literally and metaphorically
working in the dark, whether coping day and night with the jam of fallen and
broken trees or trying to muddle through in corporate and public decisionmaking structures. A kind of push-triggered collective (social) entrepreneurship
emerged, which released the same kind of creativity that is associated with pull-
triggered individual/team commercial entrepreneurship: acting upon gut feeling,
using previous experiences to cope with the new situation and network
intensely.
The moment of truth for the municipality
When we meet Claes Göran Carlsson, mayor of Ljungby municipality, at the
beginning of March 2005, our conversation largely concerns what can be learnt
from one chaotic situation to the next. In the summer of 2004, six months before
Gudrun hit the same area, the main streams in Ljungby municipality flooded.
During the flooding the municipal executive board, together with appropriate
technical units, created a structure to cope with the acute situation:
You need to act directly and on a large scale; create a staff so you can speed up the
decision-making process. You have to down size the formal processes and move to
execution. But the municipal staff have to know that they have the politicians behind
them in their decisions. Generally, institutions are afraid to act because of the costs
and the risk of being criticized for unauthorized action. But it’s better to be criticized
for doing too much than for doing nothing.
When revisiting Carlsson in November 2005 we bring up the learning
experiences. He then tells us that immediately after the flooding he and the
rescue leader were invited to other municipalities and asked to share their
lessons with them. After Gudrun these kinds of requests have increased: ‘We are
quite satisfied with our achievement. I know we can do it again if necessary.’
Coping with Gudrun enforces the importance of established relations:
Not just having the contacts, but knowing that you can work together. When you
reorganize and create space for action, you can draw as many organization maps you
want, but if the [personal] relationships are not working, nothing can help you in an
emergency situation. The social capital is decisive, you need to build the foundation,
share the same values, before you have to deal with the emergent situation, both
inside and outside the organization.
Reflections: Ljungby municipality appears as a role model for organizational
learning aiming at flexibility and preparedness for emergencies. Natural
disasters vary with respect to their surprise effect and have to be dealt with
accordingly. In order to create space for action information has to be rationed –
a unique case in an otherwise indifferent and democratic Swedish society. A
dual municipal order is practised – one that copes with everyday routine
operations and one that enters the scene in case of emergency. These parallel
structures seem to jointly infuse entrepreneurship into a public structure. Even
more important, trust is tightly connected with previous experiences and reveals
itself only when the community faces an emergency. Learning and knowledge
creation come from hands-on experience, but also from telling stories to others,
sharing experiences. Repeated reflections on one’s own action enforces selfidentity and increases the willingness to act again. Mayor Carlsson recognizes
the role of emotion and commitment in the making of organized efforts. The
language he then uses is more of an entrepreneurial voice, relieved from the
bureaucratic vocabulary that public structures are usually associated with.
Small businesses: disconnected from their customers
In this section we meet Roland Axelsson, responsible for retail at Rottne
Industry Ltd. The company is one of the leading manufacturers of logging
vehicles, with its markets in Europe, North America and Australia.
On the Monday morning when Gudrun had left southern Sweden, Rottne
Industry Ltd immediately starts to mobilize. Emergency organizations, forestry
entrepreneurs and forestry owners turn to the company asking for vehicles and
drivers. ‘Several organizing solutions have been created in our community to
facilitate the reconstruction after Gudrun. They are provisional and will
probably dissolve and disappear when they have fulfilled their mission’, says
Roland Axelsson. Rottne Industry Ltd also takes an active part in the recovery
work. Even though the company uses retailers when business is as usual and
never deals with used machinery, they now take advantage of their well
established network to gather and disseminate information, search for
subcontractors from Europe, and even to work as mediators for second-hand
machinery and logging machinery of other brands.
Reflections: The hurricane makes Rottne Industry Ltd reconsider what
constitutes an important customer, opening up a field between commercially and
socially important actions. Self-centredness was replaced with a need to call
attention to what heroic contributions have been made by others in the local
context. In the face of Gudrun, action is not triggered by emerging business
opportunities but by a necessity to contribute to the reconstruction of the
everyday life they share with their fellow citizens.
Incapacitated corporate structures
Gudrun’s impact on the infrastructure in the region, for example E.ON, the
major regional power provider, is devastating. When we first meet immediately
after Gudrun, Sven Ruther at E.ON is busy organizing the recovery work. He
explains that they got reinforcement not just from other power companies in
Sweden and Europe but also from local networks. In the 1960s Sydkraft, E.ON’s
predecessor, created ‘LRF-supportive groups’ (developed in collaboration with
the Federation of Swedish Farmers – LRF) in the rural areas, enacting the
ambition to always being able to have staff available locally. Where these
groups are still active E.ON uses them to cope with the damages that Gudrun
has caused. In other places they re-emerge: ‘Without means of communication
you need to have people from the area that can guide electricians, and first,
before you can even start to organize the restoration work, you need to clear
blocked roads and wires.’
When we meet again with Sven Ruther he is responsible for customer contacts
at E.ON. He explains his new assignment to us:
E.ON has an emergency organization that gets activated in case of a crisis. Since I
live in Älmhult, I know the area and the industrial plants. I was working in Älmhult
as early as in the 60s so I know the people personally. In these situations you gain a
lot if you know your way around and if they know you.
In the aftermath of Gudrun E.ON has learnt about the importance of preserving
local knowledge, and the corporation has re-established LRF-supportive groups
in every municipality where it operates.
Reflections: Corporations such as E.ON have realized the need for a dual
structure, one for routine operations and one to implement in case of
emergencies, the former increasingly global, the latter increasingly local. Thus a
‘glocal’ matrix organizational structure emerges. A related lesson from E.ON’s
experience is the importance of being close, physically as well as mentally and
socially. Knowledge originating in everyday local life turned out to be a major
source for entrepreneurship in the emergency situation created by the hurricane.
That is, coping with Gudrun also exposed collective tacit knowledge and
entrepreneurship.
Intermediators in broken structures
Smaland Airport Ltd is a minor regional airport with limited operations in the
middle of the area struck by Gudrun. Like any airport, Smaland Airport Ltd is
strictly controlled by laws and security rules, but Jan Fors, its managing director,
can also tell many stories about creative organizing. Realizing that the airway is
the only operating exit from or entry into the region, he and his staff jointly
decide that they are going to keep the airport open round the clock until they
know that all land roads have been cleared:
The regional actors have not been able to get organized; not even once did they
contact us to see if we were all right or if we had the resources needed to keep the
airport open. We managed to do it, but isn’t that worth finding out?
When we revisit Jan Fors in November 2005 he summarizes what he and his
staff have learnt from dealing with Gudrun:
The initiative and strength come from individuals; they have the commitment and the
wish to help one another. And personally I have learnt to understand life in the
countryside. My staff lives there, we talked a lot about their situation and I have
realized that we sometimes forget about that kind of life.
According to Jan Fors, hands-on action is the most important thing when coping
with a crisis, experience and also good relations to people you need to deal with:
‘When there is an emergency, you don’t have time to establish something new,
you use what you’ve got, even though it is in new forms’.
Our interviewees often have difficulties communicating how they came to
organize the way they did. Revisiting Mats Folkesson, coordinator at Farmers’
Services, a kind of rural co-operative employment and staffing agency set up by
farmers and bridging between corporate structures and civic society, again tries
to explain:
I don’t know how it all started, things just began to move. First it was a question of
survival, to reach the main road. We started to work three and three, and as we
progressed we began to gather more and more people. We never had a discussion
about money or whether we should get involved or not.
Since Farmers’ Services normally deal with corporate structures, such as E.ON,
the National Swedish Road Administration and business firms, they could
mediate between the formal structures and the private initiatives. In order to be
close to where the action was Farmers’ Services temporarily moved their
administration from their town office to a garage in the rural area.
Reflections: From coping with the hurricane we once again get proof that large
‘well-structured’ organizations run into problems when surprised by (literally)
path-breaking events. Smaller informal organizations, in contrast, quite easily
adapt their organization to the new situation. At Smaland Airport Ltd Gudrun
even triggers new perspectives on its own organization, recognizing the
employees as both goals and means for bridging their core business activities
and the societal context. Jan Fors’s stories underline that trust appears when
needed actions are embedded in long-term relationships.
The crisis situation made visible the need for recombining existing
competencies according to need: individuals like Mats Folkesson brought
together people and resources at hand and created solutions to problems as they
emerged. Because of Gudrun Farmers’ Services were suddenly offered a task
environment that was begging for their way of organizing. They were the ones
trained to connect between different actors, since their staff were trusted both
among local residents and formal structures. Such temporary organizing
demonstrates a form of entrepreneurship that is driven by emergency and
practised through immediate (inter)action.
Searching for the roots of emergency entrepreneurship
In this section we shall further analyse our field accounts and search for the
origins of the proposed features of what we here, inspired by, among others,
Gartner (1993), name ‘emergency entrepreneurship’. We argue that studies of
extreme situations will not only reveal entrepreneurial forces that remain hidden
under ‘normal’ circumstances, cf. Weick (1990), but generally enrich our
understanding of organization/organizing as including entrepreneurship as well
as management. Therefore we first tentatively position emergency
entrepreneurship in the context of the other images of entrepreneurship
introduced above. Since issues associated with coping with surprises and dramas
appear in the literature on management as well as on entrepreneurship we then
provide a general, yet simple, model for structuring different ways to deal with
turbulent environments. We especially elaborate on this theme by juxtaposing
the conceptual lessons from our empirical research with Lanzara’s (1983) notion
of ‘ephemeral organization’. After that we see a need to qualify Lanzara’s
understanding of formal organization and therefore we review the ‘project
organization’ and ‘crisis management’ as institutionalized ways of dealing with
temporary challenges and/or surprises in the environment.
Revisiting proposed modes of entrepreneurship
The stories about localized creative organizing in a region facing a natural
disaster as related and interpreted above call for a different understanding of
entrepreneurship than those presented in Table 4.1. First, it is in our case
obvious that there was no omnipotent actor who could practise ‘opportunitybased entrepreneurship’. The hurricane and the needs for reconstruction that it
made obvious may possibly be seen as an instant opportunity, but the belief in
calculated trust seems alien in a situation which has no precedents. Our notion
of ‘enactive entrepreneurship’ also seems inappropriate, since coping with a
disaster certainly is not about playful experimentation instigated by a subject in
order to joyfully enact new environments out of ambiguous surroundings. The
triggering initiative does not belong to the agent, and the experimentation
needed to cope with the emergent situation is characterized by genuine
uncertainty: what needs to be done first – restoring physical structures – is more
than obvious, but the feasibility of alternative action tactics is totally unknown.
The notion of ‘prosaic entrepreneurship’ obviously brings limited understanding
to how to deal with a natural catastrophe that undermines the everydayness of
life. In the case of emergency all initiatives aim at the reconstruction of
everyday life, not, as in the case of prosaic entrepreneurship, using everyday life
as a basis for instigating (ad)ventures.
Our tentative understanding of emergency entrepreneurship is, nevertheless, in
some respects related to the other modes of entrepreneurship according to Table
4.1. With opportunity-based entrepreneurship our notion of emergency
entrepreneurship shares the importance of social capital in resourcing the
measures taken to cope with challenges on their arrival (although emergency
entrepreneurship needs bonding rather than bridging social capital; see
Johannisson and Olaison, 2007; cf. Davidsson and Honig, 2003).
Experimentation was certainly called for as much as in enactive
entrepreneurship when dealing with Gudrun, but that was since the situation was
out of control and since people desperately asked for more information. That is,
uncertainty, not ambiguity, prevailed. Passivity, even paralysis, facing the
devastating effects of the hurricane, though, soon enough turned into intense
local interaction in order to find ways to reconstruct basic everyday life.
Commitment to place and collective identity associated with the territory as a
physical and social space encompassing everyday life activated the social capital
needed to practise mundane, yet creative, organizing, the hallmark of prosaic
entrepreneurship.
Organizing under pressure
In order to come to grips with ways of dealing with unexpected events that call
for (at least) temporary solutions, we have to go one step back and conceptualize
a shared ground for entrepreneurship and management, certainly ways of
organizing that are different in kind (cf. Hjorth et al., 2003). Here two simple
dichotomies are used in order to illustrate qualitative differences between
entrepreneurship and management in this context. The two dimensions are
‘structure’ and ‘ways of coping with the environment’ (Figure 4.1). As
indicated, organizational structures may be permanent or temporary.
Organizations may relate to environmental change proactively or reactively.
Typically, entrepreneurship, as well as management, appears in and/or as
permanent structures that operate proactively. Incorporated rescue organizations,
for instance, are permanent organizations which are managed in such a way that
they can, reactively yet professionally, deal with environmental rupture. Even
bread-and-butter family businesses which are pushed into existence are
entrepreneurial while still emerging, but the entrepreneurial spirit usually
vanishes once established reactive behaviour dominates their coping.
Figure 4.1: Entrepreneurial and managerial ways of structuring activities and coping with the
environment.
Our focus here, though, is on the temporary structures. Looking first at
entrepreneurship as more or less a proactive, strategic activity, habitual
entrepreneurship comes to the fore. The entrepreneurial career may be looked
upon as the enactment of a bundle of temporary ventures, cf., for example,
Westhead and Wright (1998). Larson and Starr (1993) and Johannisson (2000)
look upon entrepreneuring as the flow of (temporary) ventures which sediment
out of the personal network of the entrepreneur. Within the field of management
‘project organizing’ is a well-established proactive practice to which we shall
return below. We shall also elaborate on ‘crisis management’, that is, routinized
ways of reacting to dramatic environmental change. We obviously propose the
notion of ‘emergency entrepreneurship’ as an image of entrepreneurship that
makes it triggered by external events and calls for immediate and temporary
reaction.
Enquiring into the l980 earthquake in southern Italy, Lanzara (1983) tells the
story about volunteers who immediately entered the region being hit. There they
organized their support as temporary ventures, only to exit after a few days
when they were succeeded by rescue teams set up ‘from above’ by the public
authorities. An institutional order thus soon enough replaced the original
spontaneous rescue operations with their ‘ephemeral’ structure, lacking a history
as well as a future. Since these two support structures are organized in radically
different ways they have, according to Lanzara (1983), to be separated in time.
Our story, in contrast, tells of how a disaster was originally dealt with from
below and from the inside, that is, by collaborating local and regional agents,
involving citizens as well as formal institutions. That is, the notion of
emergency entrepreneurship reports on organizational endeavours, where
spontaneous organizing and institutionalized structures emerged into
collaboration founded in a shared history and with the prospects of a jointly built
future.
Recently, it has been argued, other forms of temporary organization, such as the
project organization, offer a new paradigm in the management field (Turner and
Keegan, 1999), where it is usually applied to intra-organizational structuring.
Research in the field usually focuses on projects within the boundaries of
existing organizations (Heller, 1999). Projects are then broadly defined as
‘organizational processes of planning, organizing, directing, and controlling
resources for a relatively short-term objective established to complete specific
goals and objectives’ (Shenhar, 2001: 241). Peterson (1981), as early as a
quarter of a century ago, used the notion of ‘operative adhocracy’ to present
presumably dynamic corporations as bundles of projects. ‘Adhocracy’ was later
appropriated by Mintzberg (1988) and Storper (1989), for example, when
researching the alleged creative Canadian and American (film) industries.
However it has also been argued that firms in the film industry constituted as
hosts for projects, in fact, are themselves lacking innovativeness and
entrepreneurship (Davenport, 2006). The industry invites to repeatable
structures, not to originality. Projects are: (1) set up either in order to proactively
exploit creative people (for example, in the film industry) or in order to
implement standardized measures more efficiently (for example, in the
construction industry), not in order to reactively deal with devastating
environmental change; (2) arenas where the participants are expected to use
their unique individual competencies, not to demonstrate collective concerns;
and (3) settings where creativity, spontaneity and improvization are used to craft
new social and mental structures, not in order to restore physical ones.
The crisis management literature also appears paradoxical regarding structure
and planning. We see this literature as divided into two parts. The first one is
concerned with preparing companies for potential crises, predominantly
financial crises, by creating temporary structures that can be put in place to
restabilize organizations (Loosemore and Hughes, 2001) and possibly use the
crisis to develop them further. The second part of the crisis management
literature concerns itself with planning for and managing natural disasters, using
models primarily from public management and project management (inter alia
Moe and Pathranarakul, 2006). These primarily empirical studies repeatedly
indicate that local governments (McEntire and Myers, 2004) as well as small
businesses lack plans or organizational structures aimed at coping with disasters
(Runyan, 2006; Spillan and Hough, 2003). Studies also report that it is citizen
responses and personal and social networks that ‘save the day’ (Helsloot and
Ruitenberg, 2004; Ok Choi and Brower, 2006; Pardasani, 2006). Nevertheless,
critical-management research tries to fill the gap between formal plans and the
way networks in a crisis actually work (Ok Choi and Brower, 2006) with models
for systematically building preparedness (McEntire and Myers, 2004). We thus
state that project organizations and crisis management are settings where the ‘ad
hocness’ is very much designed as a tool for management. In Table 4.2 we
juxtapose, on the one hand, the project organization and crisis management with
Lanzara’s notion of ‘ephemeral organization’, on the other, with our emerging
concept of ‘emergency entrepreneurship’.
Only marginal adjustments are needed when making Lanzara’s general image of
formal structures also include the project organization. Lanzara (1983) states
that in a formal (project) organization, internal and external boundaries are
distinct, while in an ephemeral organization the boundaries are fuzzy. Further, in
crisis management the boundaries are distinct, since it aims at a pre-prepared
plan for a specific need. As a territorial phenomenon, emergency
entrepreneurship is enacted in a context where the space boundaries are
unambiguous to all concerned. General time restrictions tie people and their
everyday practices to a place. Many public organizations are also organized by
physical space. In case of an emergency the social boundaries inside and
between the private and public spheres/sectors, however, dissolve on the
micro/individual as well as on the organizational level. General commitment to
place triggers residents to take initiatives also in the interest of other local
residents – homo economicus turns into homo curans. The dramatically changed
natural and social environments produce an ambiguity that invites, or rather
requests, people to turn coincidences into opportunities, calling for hidden
professional strengths and dormant entrepreneurial capabilities. As a bridging
force between organizational structures and individual and local initiatives,
emergency entrepreneurship reminds us of ‘situational altruism’ which
‘motivates people to help in ways that are not mentioned in contingency plans.
This creates opportunities for organizations and helps let [sic] them work more
actively’ (Helsloot and Ruitenberg, 2004: 103).
Table 4.2: Alternative structures for temporary organizing.
Feature
Project
organisations
Ephemeral
organisations
Emergency
entrepreneurship
Boundaries
Distinct
Fuzzy
Spatially distinct,
socially/mentally fuzzy
Leadership
Central, shifting
Shifting, lacking
Local and multiple
Organisational
structure
Formal, hierarchical
Informal,
spontaneous
Loosely coupled and
glocal
Information flow
Vertical
Horizontal
Lateral
Practical
effectiveness
Restoration of everyday
life
Performance criterion Economic efficiency
Source: Inspired by Lanzara (1983: 88), Table 1.
Devastating events, such as natural catastrophes, trigger and force everybody to
take their own initiatives, since residents in the area struck by the disaster can
neither exit nor just stay placid or give voice (Hirschman, 1974). Practising a
‘heterarchical order’ (cf. Grabher, 2001), leadership in one’s own field of
competence appears as everybody’s right and obligation. The very tactics used
for coping with the effects of Gudrun meant instigating initiatives in as many
contexts as possible, even in the borderland between the legal and the illegal,
trusting others to make similar efforts and believing in spontaneous coordination, in self-organizing. Ephemeral organizing, as illustrated by Lanzara
(1983), is initiated from the outside by people driven by general humanitarian
concerns. Elsewhere we argue that sustainable development, energized by the
making of a collective identity, can only be achieved if organized from below
and formed inside (Hjorth and Johannisson, 2003). Even if leadership is shifting
(Kasvi, Vartiainen and Hailikari, 2002), paying special attention to success
criteria (Westerveld, 2003), leadership in the project management and crisis
management literature is concerned with producing general techniques for the
leaders from above/outside in order to make possible the centralized control of
an ambiguous situation (Moe and Pathranarakul, 2006). Leadership in the
context of emergency entrepreneurship is about taking charge of one’s own as
well as other people’s lives. Even if the leadership that our stories communicate
was local and fragmented, it was appropriate.
In case of emergencies of the Gudrun magnitude any established organization
structure appears obsolete by definition. There was no need to break out of
existing structures, an issue often discussed in the literature on organizational
learning and innovation. The structures themselves broke down, indicating a
need for a more flexible order. In our case ‘loose coupling’ was practised as a
generic organizing principle in the region at large, with local task forces
operating autonomously yet interdependently (Weick, 1976; cf. also Heller,
1999). Community-based project organizations adopt a similar structure (Skutle,
Iversen and Bergan, 2002). Further empirical accounts from coping with natural
disasters report the same insights (Helsloot and Ruitenberg, 2004), indicating
that loose coupling is feasible for a broad mobilizing of resources. The need for
immediate action and temporary restructuring calls attention to the image of
‘organized anarchy’ (March and Olsen, 1976), where problems and solutions are
dating each other. While project/temporary formal organizations, like the
permanent organization, carry a formalized administration, there was no time for
planning or structuring in the Gudrun case. ‘Glocal’ organizing, implying core
local action cells that take advantage of distant (global) resources by way of
networking associated with bonding social capital, appears as a generic
organizing feature of emergency entrepreneurship.
The enormous need for information reflects the huge uncertainty that most
people experienced during and after Gudrun. That uncertainty could only be
reduced by intense (social) (inter)action and an unrestricted, ‘lateral’
information flow. The sociality of the social capital that embeds economic
activity has itself to be pulled out of the bed. In an emergency situation even the
dark side of personal networking, the risk that it may violate democratic values
and processes, has to be accepted, as much as the idea that civil disobedience
may be the only way to cope in critical situations where institutions fail. For all
residents in the rural part of the region that Gudrun struck it was more than
obvious that on the morning of Sunday 9 January something concrete had to be
done. No other performance, but local commitment and general responsiveness
to the existential and practical challenges would do (cf. Stryjan, 1987). This
immediate need, though, soon enough turned into a demand for specific and
certainly localized services. Activating previous hands-on experiences,
individuals in local organizations were taking action far from the formal
structures framing their normal routines (cf. Sauri, Domingo and Romero,
2003). Ephemeral organizing and emergency entrepreneurship share a pragmatic
concern, while project organizations are primarily driven by deconextualized
economic efficiency (Halman and Braks, 1999; Davenport, 2006). Crisis
management aims at restabilizing and ‘managing disaster with a basic goal to
minimize effectively the impact of disaster’ (Moe and Pathranarakul, 2006:
398).
Conclusions: towards a definition of emergency entrepreneurship
Contemporary dominant views on entrepreneurship propose, albeit using
different ontological assumptions and vocabularies and relating to different
spaces for boundary-spanning (inter)action, that entrepreneurship is about the
creative non-routine organizing of people and resources. Exploring unknown
domains makes (business) venturing intrinsically experiential, whether global
challenges are exploited in a way that change people’s everyday practices
(Spinosa et al., 1997) or, as in the case of emergency-triggered entrepreneurship,
established practices have to be reconstructed.
Again, entrepreneurial initiative is certainly not just driven by self-interest and
concerned with (economic) growth. The Gudrun story tells us that
spontaneously organized multi-skilled rural citizens both restored old relations
and created new social trails in a physical landscape that had completely
changed due to the disaster. The lesson told is that entrepreneurship is also
closely associated with generalized responsibility and that ‘common sense’ is
important as a means for taking on surprises and challenges and not only as
being itself the target for change. The importance of localized social capital with
its strong bonds, which promise solidarity and trigger action when most needed,
is re-established as well.
As indicated, an entrepreneurial career can be described as a set of interrelated
project/ventures embedded in the personal networking of the entrepreneur
(Johannisson, 2000). The role of personal initiatives is made visible in Lanzara’s
notion of ‘ephemeral organization’. Such organizations are instigated by an
individual who sees a natural disaster as an opportunity to ‘display his capacity
and [that] at the same time the opportunity “creates” the actor, shapes his system
of representation, and enhances his capacity for action’ (Lanzara, 1983: 73).
Obviously, the notion of ‘ephemeral organization’ connects what we address as
enactive, prosaic and emergency entrepreneurship. This is hardly surprising,
considering that a disaster breaks down the socially constructed barrier between
private and public lives, forcing a new structure to be built from below. Early
on, Katz and Kahn (1966) told the story about how the municipal fire brigade
emerged out of voluntary collaboration between residents in a community,
whenever property was on fire, and successively formalized into its present
structure (cf. also Christoplos, 1998). In the absence of a public organization
local solidarity and responsiveness to challenges were self-evident.
When the everyday physical world is turned upside down by a major disaster,
entrepreneurial action, then meaning maintaining and re-establishing everyday
practices, has to be instigated. It means immediacy and hands-on (inter)action,
evoking the embodied knowledge needed for operatively coping with concrete
challenges that leave little time for reflection. In parallel, people locally have to
re-establish and activate existing bonds and create new relations to incorporated
private and public organizations. Together they have to try to integrate their own
measures with those of existing public and market structures (cf. Sauri et al.,
2003). Relating then means taking the trustworthiness of others for granted.
Research into how people cope with (natural) disasters also suggests that trust
becomes personal (Gephart, 1984; Christoplos, 1998; Hurlbert, Haines and
Beggs, 2000; Sauri et al., 2003), neither organizational nor institutional (Sanner,
1997).
We can now conclusively conceptualize the proposed notion of ‘emergency
entrepreneurship’ in the perspective of our introductory three images of
entrepreneurship. Above, we already briefly stated that the emergency
entrepreneurship is different in kind to them. Regarding the aspects presented in
Table 4.3, we first state that the triggering event, the initiative, is external to
those concerned, appearing as a natural and/or artificial disaster that creates a
rupture in everyday life. The entrepreneurial process is characterized by the need
for immediate (inter)action in the face of non-negotiable conditions that put
important material conditions and existential values at stake. Once the external
shock is recognized, local interaction with the situation at hand appears as
generic coping. The roles of social capital, the major potential resource, are
multiple: a trigger, a lubricant and a safeguard in spontaneous organizing. Local
commitment, instrumental in such a situation, acknowledges the need for and
facilitates the use of ‘swift’ trust (Meyerson, Weick and Kramer, 1996) when
action has to be taken instantly and incessantly. The organizing rationale appears
as a kind of ‘social bricolage’. While the (artisan) bricoleur, according to LeviStrauss (1968/1971), brings together redundant artefacts/resources in order to
compose local responses to problems as they present themselves (cf. also Baker
and Nelson, 2005), social bricolage means combining and locally – in time as
well as in space – integrating chunks of everyday routines according to the
events that the drama produces. This indeed means practising an ontology of
becoming, according to Chia (1995).
Table 4.3: Emergency entrepreneurship – generic features. Compare also Table 4.1.
Aspect
Emergency
entrepreneurship
Origin of initiative
Rupture in everyday
life
Process
characteristics
Immediate
(inter)action
Generic coping
Local interplay with
the situation at hand
Role and sources of
social capital
Organising based on
local commitment and
swift trust
Organising rationale
Social bricolage
Some may argue that it is unnecessary, even inappropriate, to offer yet another
image of entrepreneurship in an academic community already swarming with
proposed understandings of the evasive phenomenon. However, in an
increasingly globalized world, social and economic changes will create sudden
and radical emergencies in many local settings, as suggested by chaos theory.
As a matter of fact, the most popular demonstration of that theory is that a
butterfly’s movement of its wings may cause a hurricane on the other side of the
globe! Our lessons from how Gudrun was locally dealt with not only bring
insights about how common people may practise their entrepreneurial
capabilities. Our research also communicates the potential of the ‘glocal’ tactics
adopted by emergency entrepreneurship as a generic means for locally taking on
global challenges and thus enriching our general understanding of
organization/organizing.