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Research Article

The Crisis Management and the Reputation of UAE Police: An Application

Situational Crisis Communication Theory

Tariq Saeed Khalfan Barshoud Almarshoodi1, Ahmad Bashawir Abdul Ghani2, Mohammed R A Siam3*

1,2,3Universiti Utara Malaysia, Kedah, Malaysia

tariq.barshoud@yahoo.com1, bashawir@uum,edu,my2, r.a.siam@uum.edu.my3*

Article History: Received: 10 November 2020; Revised: 12 January 2021; Accepted: 27 January 2021; Published online: 05 April 2021

Abstract: The prime objective of the current study is to investigate the impact of a crisis on the organizational reputation. For this purpose, the study has employed the Coombs’ situational CC theory (SCCT). Using a case which involved the death of a witness during an interrogation by the government agency; this study analyzed the development of the crisis situation as it unfolded. Subsequently this study assesses the attribution of crisis responsibility three and a half years after the crisis erupted, in order to get a clear picture of its impact on an organization’s reputation. Through the lens of SCCT theory, the present study examines employees’ perceptions of the attribution of crisis responsibility and the relevant organization’s reputation in the context of a preventable crisis. This study attempts to enrich the existing body of knowledge by expanding and developing the SCCT theory in reducing reputational threats. In this study, employees’ positive perceptions may be due to the fact that they think the crisis as something that is manageable and can be controlled. Crisis responsibility as the predictor in the study indicates that even though the origin of the crisis is unknown and to date, the cause is still uncertain, public servants view circumstances, not UAE POLICE, as being responsible for the crises.

Keywords: Crisis Management, Reputation, Situational Crisis Communication Theory, UAE

1. Background

With regards to the economic situation worldwide, the significant effect of crises is well known even on the security sector i.e. the police. In the context of the airline sector, it continues to face challenges in the form of record turbulence, extreme losses in hedging, and risks that weaken the favorable prospects for the business. The calamities entail the ever-present range of natural occurrences and industrial incidents such as snowstorms, hurricanes (Neef&Grayman, 2018), earthquakes (Brink & Davidson, 2015), dust storms (Namdari, Karimi&Sorooshian, 2018) and floods of colossal magnitudes (Idris & Dharmasiri, 2015). There are also planned incidents such as skyjackings, bombings, passenger-related scandals, and terrorist attacks (Economou&Kollias, 2019). All such crises have observable characteristics that are used by the airline companies to comprehend the nature of the unexpected events. The characteristics include: i) highly vague, unanticipated or unidentified risks, ii) low possibility of happening but with substantially grievous effects, iii) zero or inadequate power of the information regarding the events (Cheng, 2018), and iv) psychological and institutional decision-making barriers that cause uncertain outcomes. Such unexpected circumstances have been identified to have a significant effect on both the passengers and the airline company.

This study aims to examine the relationship between crisis and organizational reputation. Towards this end, this study employs Coombs’ situational CC theory (SCCT) in investigating the death of a witness during a cross-examination conducted by a government agency. This study closely follows the progress of the case. Afterwards, this study examines the crisis accountability attribution three and a half years following the onset of the crisis so as to identify its effect on the reputation of the agency. Based on the SCCT, this study then assesses the perception of the employees on the crisis accountability attribution and the reputation of the agency from the standpoint of a preventable type of crisis. This study expands and develops the SCCT in an attempt to reduce reputational threats and therefore enrich the relevant body of knowledge.

The SCCT is employed to discern the three types of crisis i.e. victim-oriented, accidental and preventable. Initially, the chosen case study was classified under the victim-orientation type as the individual died under the supervision of the UAE police (Bakry, Jawad&Saleheen, 2019). The UAE police resorted to denial as its first response strategy by claiming that the victim had committed suicide. Nevertheless, further evidence soon reveals the agency as the crisis owner, thus shifting the crisis type to one that is preventable. In both situations, the placed itself as the victim as well. Based on the SCCT, proper measures could have prevented the crisis from happening. Upon this revelation, the agency shifted to a more accommodating stance in its response strategy and began to give its full cooperation.

The way organizations respond to crisis i.e. their crisis response strategies rely greatly on the crisis type that had transpired as outlined by the SCCT. In this current study, the agency under research utilizes renunciation and defensiveness as its response strategy. At the outburst of the crisis, the agency had refused accountability and

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shifted the responsibility to the victim. Apologies were not issued to the family of the victim. Following an intensifying crisis situation, the anticorruption unit became more accommodating and demonstrated a low level of crisis accountability with the aim of reducing the pressure and mitigating reputational threat. As the situation entered the phase of strategy reforms, the agency started to reach out to the victims and the related stakeholders. The agency resorted to less defensive strategies and became less offensive in addressing the situation. The agency opted to restore its reputation by employing the aforementioned strategies along with rigorous corporate communication efforts.

Islam, Ali and Shahzad (2018) suggest further studies to understand the present circumstances concerning the reputation of public organizations. Hence, this present study attempts to measure the perception of internal stakeholders towards the reputation of public organizations in the UAE. In particular terms, this study examines the post-crisis reputation of a government-owned airlines aviation department. The internal stakeholders entail the administrative and managerial staff at two public sector organizations in the government-owned airlines aviation department. The selection of this context is based on several reasons. Firstly, there is a lack of empirical research on reputation management among the public organizations in developing countries particularly those in Asia. Secondly, at present the UAE is embroiled in several crisis management issues concerning the credibility and integrity of some of its public departments and leaders leading to reputational threats. Thirdly, there is also a lack of discussion on the perception of employees in public organizations; being the internal stakeholders, they are also held accountable for the rise in public distrust, grievances and frustration following a crisis situation. Having an insight of the employees’ standpoint about the reputation of their organization is highly critical considering that they are the most valuable organizational capital.

2. Conceptual Framework

Despite the vast body of knowledge on the subject of organizational reputation, the findings in this area are still controversial as focus has been more on the private sector while the public sector remains relatively unexplored. Consequently, not much is known about the reputation of public sector entities and national legislations. Specifically, the aspects that remain unidentified are the concept of reputation, its various characteristics, its advantages and limitations, the challenges attributed to it as well as strategies for managing them.

The concept of reputation in the public sector is not technically described in the legislation; however, it relies on the discernment that stakeholders can use the performance of an organization to form their thoughts and sentiments (Kaufmann, Taggart & Bozeman, 2019). The notion of organizational reputation has long been debated. Specifically with regards to the reputation of public organizations, no agreement has been achieved in academic literature concerning its definition as well as approaches in measuring its related issues, constructs and dimensions (Gangi, Daniele &Varrone, 2020; Ginesti, Caldarelli&Zampella, 2018), the factors driving positive organizational repute (Englert, Koch &Wüstemann, 2018), its effect on performance management and leadership commitment (Van Dooren, Bouckaert&Halligan, 2015), its degree of sensitivity towards political issues (Cheng, 2015), its value in financial terms (Wang, Dou & Jia, 2016), the threats upon it during times of crisis (Lin-Hi & Blumberg, 2018) and issues that affect organizational reputation (Zhang, 2018).

Most studies on reputation continue to focus on the private sector and the aspects of financial performance (Kuranovic, 2018), corporate image, satisfaction and trust (Youness&Valette-Flotence, 2017), upshots of the relationship between the organization and the public (Ji, North & Liu, 2017), the development of agendas, anti-corporatism threats and management (Moskolaï, 2016), competitive advantage (Han & Pollock, 2019), corporate brand (Robson & Farquhar, 2017), ethics, ‘bottom line backlash’ (Godfrey, 2017) as well as internet service and e-commerce, amongst others. One study examined the significance of corporate reputation, stakeholder relationships and corporate social responsibility in MNCs, GLCs and PLCs in the UAE (Mokaeane, Moloi&Oksiutycz-Munyawiri, 2017) and provided some insight on the main driving factors of the three concepts as well as their positioning and integration. Similar to how the reputation of public organizations in Western countries had been largely ignored in research, the reputation of public sector organizations in the context of the UAE has also been neglected. Consequently, very little is known about the nature and challenges encountered by the public sector in the UAE. Considering the many growing issues related to reputation in the UAE’s public sector, further research in this context will definitely contribute to enriching the body of knowledge concerning organizational reputation as well as benefit governmental bodies and the general public.

It is undeniable that a well-reputed public sector will bring many benefits, but there are still many gaps concerning the glaring distinctions between the public and private sectors. For one, both sectors have different characteristics. Public organizations are characterized by mountainous governmental policies, larger numbers of

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stakeholders, more demanding organizational crescendos and greater administrative bureaucracy (Gravesteijn&Wilderom, 2018). Inspector and Tyrrell (2019) explained that the highly political legislative and representation procedure as well as the expert- and efficiency-oriented administrative procedure cause significant pressures for organizations in the public sector. Public organizations have to comply with numerous demanding officialdoms when liaising with government authorities to maintain their reputation and to ensure smooth collaborations. Therefore, it is important for public organizations to build and preserve their reputation in such environment.

The SCCT suggests a significant link between crisis response strategy and crisis accountability (Indiraswari, Kriyantono&Pia, 2019). The SCCT model argues that crisis response strategy has a significant impact on the crisis responsibility (Indiraswari et al., 2019). Despite that, very few studies had been performed to investigate the impact of crisis response strategy on both crisis accountability and crisis management (Madden, Janoske&Briones, 2016). Using SCCT in investigating the public response towards Samsung Company, Krishna and Vibber (2017) indicated that the public is likely to make low external attribution or high internal attribution when low levels of differentiable information is offered. In the context of crisis management by the American Red Cross via the application of SCCT, Madden et al. (2016) discovered that a properly formulated crisis response strategy is effective in managing a situation of crisis. Organizational stability during times of crisis is affected by the organization’s prevailing repute; hence, the most suitable crisis response strategy can be formulated once the reputational threat has been identified. The SCCT is advantageous because it takes into consideration the perception and reaction of the stakeholders towards the crisis at hand. Yet, the relationship between crisis response strategy, crisis management and crisis accountability has not been properly examined (Krishna &Vibber, 2017). Krishna and Vibber (2017) has explained the issue of public response to Samsung Company by using lenses of SCCT and found that there is a tendency in people to make lower external attribution or higher internal attribution in the case when low level of differentiable information is provided. Meanwhile, Madden et al. (2016) applying SCCT, on the crisis management in American Red Cross, found that a crisis situation can be handled by formulating and effective crisis response strategy. Hence, based on all the arguments above, the hypothesis below is proposed:

Hypothesis 1: Crisis response strategy has a correlation with crisis accountability attribution.

According to Indiraswari et al. (2019) based on the SCCT model, the best crisis response strategy can be determined by assessing the crisis’ threat on the organization’s reputation. According to the SCCT model by Indiraswari et al. (2019), the threat to reputation of any organization is a key determinant of selection most appropriate response strategy. In the authors’ theoretical model, the crisis type is framed as initial crisis accountability. The second factor in determining the best crisis response strategy is by looking at the organization’s historical account of crisis management or that of other organizations’. Indiraswari et al. (2019) highlighted the importance of focusing on the condition of the crisis at hand when selecting the best crisis response strategy as opposed to concentrating on restoring the organization’s reputation. The fundamental relationship between crisis response and crisis type in the context of SCCT is drawn from the theory of attribution. This theory underlines the role of the individual i.e. in taking accountability of any circumstance whether positive or negative, and in taking the proper actions based on existing information. Ji et al. (2017) state that attribution offers the necessary guidelines for comprehending, assessing and expecting an incident as well as for devising proper strategies to manage any untoward repercussions. Finally, Indiraswari et al. (2019) highlight reputation as another main factor in determining proper response strategies. Organizational stability during times of crisis is dependent upon the organization’s prevailing reputation. Following the identification of the

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reputational threat, the best response strategy can then be determined. Based on all the above, the hypothesis below is hence proposed:

Hypothesis 2: Crisis response strategy has a correlation with POR.

Crisis Accountability and Perceived Organizational Reputation

Literatures on crisis management indicate that crisis accountability has a direct effect on the reputation of an organization (Indiraswari et al., 2019). Such reputational effects will vary according to the crisis accountability attributions made by the stakeholders based on the crisis type (Indiraswari et al., 2019). As the crisis accountability attribution intensifies, the reputational threat to the organization becomes greater as well. As proposed by the SCCT, a direct relationship exists between the crisis type, crisis accountability attribution and crisis response strategy. The crisis type will influence the public’s crisis accountability attribution leading to the determination of whether the organization will respond negatively or positively towards the crisis. An organization will respond more negatively if it is attributed with less accountability. Similarly, greater reputational threat comes with greater accountability attribution.

Stakeholders attribute crisis accountability according to the crisis’ triggering factors. Additionally, preliminary crisis accountability indicates the extent to which the stakeholders perceive that the actions of the organization had elicited the crisis (Arendt, LaFleche&Limperopulos, 2017) thus leading to the formation of their perceptions towards the organization. Past crisis management studies have indicated that crisis accountability attribution has a negative relationship with good organizational repute (Indiraswari et al., 2019). The more an organization is held accountable for the occurrence of the crisis, the more unfavorable its reputation will become. Similarly, a highly reputable organization will face more scrutiny during times of crisis (Roulan, 2020). Nevertheless, according to Lin-Hi and Blumberg (2018), organizational reputation can potentially minimize the impacts of a crisis. The authors further state that a crisis will pose weak implications on organizations that possess a solid reputation and vice versa.

Although the findings of Lin-Hi and Blumberg (2018) are supportive of organizations with solid repute, the degree of communication initiatives that the organization must carry out relies on its level of crisis accountability. The higher the crisis accountability, the greater the communication efforts required to restore the organization’s reputation. As suggested by Madden et al. (2016), an organization would have to establish proper communication strategies to build the public’s trust and confidence in its reputation. Therefore, the attributions of crisis accountability made by stakeholders can lead to the build-up of great anticipations for clear and comprehensive communications to clarify the crisis at hand and thus calm the situation (Kitchin& Purcell, 2017).

Literatures on crisis management propose that crisis accountability has a direct effect on the reputation of an organization (Indiraswari et al., 2019). Considering that stakeholders attribute crisis accountability based on the type of crisis, there will hence be variations in the effect on reputation (Indiraswari et al., 2019). As the attribution of crisis accountability intensifies, the effect of the crisis on the organization’s reputation becomes greater as well. As proposed by the SCCT, a direct relationship exists between crisis type, crisis accountability attribution and crisis response strategy. Specifically, crisis type forms the attribution of crisis accountability by the public leading to the determination of whether the organization will respond defensively or favorably towards the crisis. An organization that is attributed with less accountability will respond more defensively. Likewise, the extent of the reputational threat to an organization is determined by the organization’s perception of the degree of its crisis accountability. Hence, the hypothesis below is proposed:

Hypothesis 3: Crisis accountability attribution is correlated to POR.

3. Methodology

In present research, a structured questionnaire is formulated involving closed-ended questions with five-point Likert scale. Studies in the literature have reported different scales ranging from four to even nine points Likert interval scale, but current research employed a 5-point Likert scale since accurate and better results are expected to obtain when a scale has a mid-point(Krosnick&Fabrigar, 1997; Lau, 2018). The use of Likert scale with a mid-point allows the appropriate selection from the available items. Thus, out of 780 questionnaires for this study, only 493 respondents returned the questionnaires, representing a 63% response rate.

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4. Results

The reliability of items (indicators) measuring their respective latent construct, construct reliability (internal consistency reliability) and the each reflective construct’s discriminant and convergent validity are examined to measure the reflective measurement model (Henseler, 2017, 2018). These criteria are discussed in the subsequent sections:

Figure 1. Measurement Model

Reliability of an indicators shows the percentage of explained variance by the latent construct. Shah and Rahim (2019) and Hair, Hollingsworth, Randolph, and Chong (2017) suggested that for each indicator, outer loadings must be observed to examine the indicator reliability. According to a rule of thumb, reflective indicators with outer loadings ranging between 0.40-0.70 are acceptable and retained in the model, and on the other hand, items with below 0.40 outer loadings should not be included in the model (Hair et al., 2017).

Table 1. Outer Loadings

CRS OCR POR CRS1 0.889 CRS10 0.878 CRS2 0.837 CRS3 0.903 CRS4 0.892 CRS5 0.911 CRS6 0.851 CRS7 0.818 CRS8 0.864 CRS9 0.878 OCR2 0.889 OCR3 0.898 OCR4 0.882 OCR5 0.911 OCR6 0.882 POR1 0.768 POR10 0.784 POR13 0.770 POR14 0.798 POR15 0.815 POR17 0.845 POR18 0.825

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POR19 0.838 POR2 0.792 POR3 0.761 POR5 0.768 POR8 0.755 POR9 0.767 OCR1 0.888

The internal consistency reliability is defined by McNeish (2018) as to what extent all the measuring items measure the same construct or concept. Alternatively, internal consistency reliability explains the interrelatedness between a specific set of indicators (Fang, Wen, & Hau, 2019). Coefficient of Cronbach alpha (α) and composite reliability (pc) are the two estimators which are commonly used to assess the indicator’s internal consistency reliability in organizational research (Cho, 2016). Based on the interrelatedness, the Cronbach alpha coefficient explains the reliability of the indicators included in the model (McNeish, 2018).

Table 2. Reliability

Cronbach's Alpha rho_A Composite

Reliability (AVE)

CRS 0.965 0.966 0.970 0.762

OCR 0.949 0.949 0.959 0.795

POR 0.951 0.956 0.956 0.627

Hair et al. (2017)defined convergent validity as the degree of positive correlation between each item of the construct with the other items of that same construct. Hence, an adequate convergent validity is said to be established if the items that are measuring a particular construct have a positive relation with other items of a particular construct. Therefore, convergent validity can be determined by estimating the average variance extracted (AVE) as well as through observing the outer loadings (Hair et al., 2017).

Table 3. Validity

CRS OCR POR

CRS 0.873

OCR 0.847 0.892

POR 0.789 0.765 0.792

To examine the discriminant validity of a construct, Tzempelikos and Gounaris (2017) suggested to estimate correlation of a latent construct with the other constructs in the model and compare it with the AVE’s square roots for each latent construct. This criterion requires that the correlation between construct must remain less in value than the AVE square roots (Hair et al., 2017). In other words, a construct and its respective items are expected to share greater variance as compared to what it will have among other model constructs. Thus, following a rule of thumb, each latent construct’s AVE values are observed to check discriminant validity and it is required to exhibit not less than 0.50 value (Tzempelikos & Gounaris, 2017). The AVE values obtained in this study ranged within 0.502 and 0.635, thereby confirms that discriminant validity is achieved, as shown in Table 5.9. Table 5.10 also represents the AVE square roots values in bold and presented their comparison with the correlation among other latent constructs. This table also confirms that discriminant validity is established since AVE square roots satisfy the criterion of obtaining values that are greater than the correlations.

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Figure 2. Structural Model

The current research performed the path-coefficient analysis to determine the direct relationships that are hypothesized between the exogenous and endogenous latent constructs in this study. This was done by carrying out a standard bootstrapping procedure. Thus, 5000 boostrap samples and 361 cases were taken in this study following Hsu and Lin (2016) to obtain the path coefficient for the hypothesized relationships as well as their significance. Thus, this procedure generates t-statistics, path coefficients’ statistical significance of the relationships, beta coefficients and the standard errors (Hair et al., 2017; Henseler, 2017, 2018).

Table 4. Direct Relationships

(O) (M) (STDEV) (|O/STDEV|) P Values

CRS -> OCR 0.847 0.847 0.035 23.906 0.000

CRS -> POR 0.789 0.792 0.034 23.447 0.000

OCR -> POR 0.344 0.340 0.093 3.717 0.000

R-square (R2) or the coefficient of determination presents the percentage of variation in response variable

(endogenous latent construct) that is explained by the model. The range for R2 coefficient is 0-1, where higher or

closer to 1 value signifies more variance explained or higher predictive accuracy (Hair et al., 2017; Henseler, 2017, 2018).

Table 5. R-Square

R Square

OCR 0.717

POR 0.656

An effect size is defined as the changes in R2 that occur because of the exclusion of a model’s specific

exogenous construct. Putting differently, effect size presents how much substantive impact a specific omitted exogenous variable had on the endogenous construct in the model(Hair et al., 2017; Henseler, 2017, 2018; Hsu & Lin, 2016).

Besides obtaining path coefficients, predictive accuracy for R2 and a specific independent latent construct’s

impact on the dependent construct through effect sizes (f2), a predictive relevance test is also important to be

estimated by the researchers. In PLS-SEM, the predictive relevance of a model is measured through the Stone-Geisser’s (Q2) criterion. According to Hsu and Lin (2016), this criterion determines the goodness-of-fit for the

model and is an additional assessment criterion whose value is obtained by performing the blindfolding procedure.

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Figure 4. Blindfolding

Table 6. Q-Square and F-square

SSO SSE F-Square

CRS 2170.000 2170.000

OCR 1302.000 570.272 0.562 0.243

POR 2821.000 1703.799 0.396 0.256

5. Conclusion

The positive direction of the relationship between crisis responsibility and organizational reputation indicates that the employees perceive a crisis with an internal origin as more controllable than a crisis with an external origin and, thus, assign higher attribution of responsibility for crises with internal origins. However, since the cause of the crisis in the present study is unknown, or still under investigation, the findings may suggest that employees feel that if a crisis was managed successfully and was controllable, organizational reputation would be secured. This explains Park and Rogan (2019) argument that a strong reputation could be used to reduce the impact of negative outcomes which can also create a halo effect that protects an organization during a crisis. In this study, employees’ positive perceptions may be due to the fact that they think the crisis as something that is manageable and can be controlled. Crisis responsibility as the predictor in the study indicates that even though the origin of the crisis is unknown and to date, the cause is still uncertain, public servants view circumstances, not UAE POLICE, as being responsible for the crises. As noted by Aziz and Ahmad (2018) “a bad reputation does not necessarily mean that the organization is at fault; it means a widespread perception exists that the organization is guilty”. Thus, internal perceptions suggest that employees know the organization better than outsiders. Since they are the internal stakeholders, employees are often able to recognize whether the organization is at fault or are being victimized and discredited by another party such as a special-interest group (Aziz & Ahmad, 2018). Referring to the contextual crisis selected for this study, it shows that the public servants or government officials felt that an incident involving UAE POLICE, close media scrutiny and political controversy were all manageable. They did not perceive their organization’s reputation as being tarnished by the crisis.

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