Internal crisis communication and Nordic leadership: the importance of transparent and participative communication in times of crisis

Abstract

ABSTRACT This multiple case study investigates internal crisis communication in Finnish and Norwegian hotels and restaurants during the COVID-19 pandemic, contributing a Nordic leadership perspective to the research area. Due to the exploratory nature of the study, a qualitative research design was chosen, and 16 semi-structured interviews were conducted with hospitality leaders, middle managers, and employees. The multilevel analysis revealed that existing internal communication practices were challenged due to the urgency and uncertainty of the crisis. The findings show that managerial transparency and presence facilitated sensemaking processes and contributed to trust in the managers. Yet, limited autonomy among middle managers and lack of employee consultation when communicating about decision-making indicated a conflict between internal crisis communication and aspects of Nordic leadership such as cooperation, consensus-seeking, and delegation of responsibility. However, the findings suggest that the openness and transparency of Nordic leadership prevailed in the crisis and contributed to managerial learning and solution-finding through crisis communication and management. Furthermore, leaders should find a balance between control and participation when communicating about internal decision-making during a crisis. We conclude that transparency and participative communication are essential when striving for effective internal crisis communication, facilitating employees’ sensemaking, and building trust relationships during a crisis.