Abstract:

Frequent occurrence of enterprise crisis events in recent years has forced business model innovation to find a solution on how to better cope with the changing market and fierce competition. Crisis management involves the internal and external organization management, strategic formulation and profitability of an enterprise, all of which are closely related to the business model of the enterprise. This paper tries to analyze the challenges of crisis management in the era of big data, and build a crisis management model based on the framework of 4Cs crisis management and design science paradigm. Further, this paper adopts an associative search-based methodology, which more accurately identifies relevant firms through consumer perceptions, and examines the impacts of the recalls issued by CPSC during 2004-2014 on relevant firms. We find associative search-based method can predict different and more significant impact of the crisis on the abnormal stock returns of other relevant firms, comparing with traditional SIC method. The paper concludes with managerial implications for both academia and practitioners.

Key words: big data, business model innovation, enterprise crisis management, product-harm crisis, search engine