Insights from local government managers: Navigating crises through organizational capacities and perceptions

Abstract

Recent years have shown that strategic responses to crises by local governments (LGs) depend on the type of crisis, the institutional environment, but also internal capacities and sensemaking processes. However, such relationships have not been tested widely yet. Based on a survey of managers (n = 590) from cities with more than 15,000 inhabitants in France, Germany, Italy, and the United Kingdom, this study explores the role played by specific organizational capacities (critical thinking, bricolage, and financial capacities) and crisis perceptions (valence—i.e., threat vs. opportunity; and controllability) in shaping adaptive or regressive response strategies. Results show that these capacities are associated with how LGs' managers perceive crises and the type of responses adopted. Higher financial capacity, bricolage, and critical thinking are associated with stronger sense of organizational controllability, but they have different relationships with threat and opportunity perceptions. The study confirms the importance of distinguishing valence (threat and opportunity) from controllability perceptions.