| Great changes have taken place in both the internal and external business environment. The quality standard of the product is improving and consumers’ rights consciousness has been enhanced. Therefore, modern enterprise is more easily to suffer product crisis. Once the enterprises fail to adopt effective measures to deal with product crisis, it will lead to huge losses to the enterprise. For the handling of the crisis, most of the domestic enterprises were still in a passive position, and their crisis awareness was very weak. However, lots of statistical data and research show that well crisis-prepared firms suffer fewer crises than those crisis-prone (unprepared) ones on average. Besides, organizations with high level of crisis-preparedness devote time and resources to construct effective damage containment mechanisms and procedures as well as programs of short-term and long-term business recovery. Therefore, it is of great importance to research how to prepare for product crisis effectively.This paper explores the factors influencing product crisis preparedness from the perspective of organizational learning and institutional environment, using both theoretical analysis and empirical research methods. Firstly, the research related to product crisis and product crisis management was summarized, and then our basic theory:organizational learning theory and institutional theory were introduced. Secondly, the research model and hypothesis were put forward. The questionnaire was designed and improved by discussing with my teachers and classmates. Then a formal questionnaire survey was carried and the reliability and validity test was conducted to examine the measurement model. And Structural Equation Model was used to test previously proposed model and assumptions.Based on organizational learning theory, institutional theory and research related to product crisis management, this thesis summarized the factors affecting organizational crisis preparedness. These factors including:customer orientation, technology orientation, competitor orientation, coercive pressure, normative pressure, and mimetic pressure. Our results show that:(1) A more customer-oriented and technology-oriented firm will demonstrate higher level of preparation for "Product/service defects".(2)Organizations with greater coercive pressures will demonstrate higher level of customer orientation and then higher level of preparation for "Product/service defects".(3)Organizations with greater normative pressures will demonstrate higher level of customer orientation and technology orientation, and then higher level of preparation for "Product/service defects".(4)Organizations with greater mimetic pressures will demonstrate higher level of technology orientation and then higher level of preparation for "Product/service defects". To some degree, the conclusion of this paper can provide some useful advice for product crisis management. |
