We aim to investigate the role of insurance in business recovery following the devastating Christchurch earthquake in February, 22nd, 2011. We analyze data from two business surveys conducted after the earthquake to examine how insurance affected business operation in the aftermath of the earthquake both in the short-term and longer-term. For the short-term analysis, we use a combination of propensity score matching (PSM) and linear probability model (LPM) to analyze the data. We first estimate the propensity scores for insurance take-up of each firm conditional on the firm’s individual characteristics. Stratification based on the estimated propensity scores is used to match the treated (insured) and the control (uninsured) firms. We then estimate the probability of firms’ continuing operations with a set of control variables to account for the level of damage and disruption caused by the quake in each stratum. We find little evidence of any beneficial effect of insurance coverage on business continuity in the short-run. For the longer-term analysis, we analyze the available survey data using logistic regression. The result suggests that business interruption insurance significantly promotes increased level of long-term productivity for surviving firms following the earthquake.
This paper presents the preliminary findings of a study on the resilience and recovery of organisations following the Darfield earthquake in New Zealand on 4 September 2010. Sampling included organisations proximal and distal to the fault trace, organisations located within central business districts, and organisations from seven diverse industry sectors. The research captured information on the challenges to, the impacts on, and the reflections of the organisations in the first months of recovery. Organisations in central business districts and in the hospitality sector were most likely to close while organisations that had perishable stock and livestock were more heavily reliant on critical services. Staff well-being, cash flow, and customer loss were major concerns for organisations across all sectors. For all organisations, the most helpful factors in mitigating the effects of the earthquake to be their relationship with staff, the design and type of buildings, and critical service continuity or swift reinstatement of services.
Contemporary organisations operate in rapidly evolving complex and ambiguous environments for which traditional change management approaches are insufficient. Under these conditions, organisations need to demonstrate learning and adaptive capabilities to effectively manage crises. Yet, the swift development and enactment of these capabilities can be particularly challenging for large, operationally diverse, and financially constrained public-sector organisations such as universities. Despite growing need for evidence-based research to guide crisis and change management in the higher education sector, the organisational literature offers limited insights. The combined impact of the 2010 and 2011 Canterbury earthquakes with a well-advanced restructure provided an opportunity to investigate institutional adaptation to and management of a compounded planned change (i.e., restructure) and an unplanned change (i.e., natural disaster response) at a university. Beginning in 2016, individual semi-structured interviews were conducted with 20 middle and senior university managers to capture their perspectives of compounded planned and unplanned change management, covering views of leadership, and of operational, structural, relational, and extra-organisational factors. Data were analysed using reflexive thematic analysis. The analysis coalesced into two overarching themes: Change Management Approaches and Lessons Learned through Change. Change Management Approaches evince institutional adaptation factors, along with barriers and enablers to effective change management, arising from the interplay of, and tensions between, leadership capabilities and a longstanding participatory culture. Lessons Learned through Change encompass business continuity mechanisms, and the learning opportunities seized and missed by leaders. The findings assert the primacy of workforce capabilities to 21st-century organisational success and thriving and substantiate that the calibre and availability of workforce capability is contingent on organisational culture and leadership. Leaders must ensure organisational agility by empowering employees, leveraging and integrating their contributions within and across functional units, and promoting effective two-way communication. The research argues for a hybrid repertoire of versatile dynamic organisational leadership qualities and capabilities to effectively navigate the multidimensional challenges and uncertainties in this sector and 21st-century business conditions. Of overarching significance to this repertoire is purpose-oriented emotionally intelligent leadership that honours the individual and collective dignity, diversity, and intelligence of all employees. This research empirically evidences the co-occurrence of planned and unplanned change in contemporary society, and continuous organisational adaptation and resilience to navigate the persistent volatility during a protracted crisis. Accordingly, the thesis argues that continued bifurcation of planned and unplanned change fields, and strategic and change management leadership theories is untenable, and that an integrated framework of organisational leadership and change management methodologies is required for organisations to effectively respond to and navigate the challenges and volatility of contemporary organisational contexts.
