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Research papers, University of Canterbury Library

The initial goal of this research was to explore how SME business models change in response to a crisis. Keeping this in mind, the business model canvas (Osterwalder & Pigneur, 2010) was used as a tool to analyse SME business models in the Canterbury region of New Zealand. The purpose was to evaluate the changes SMEs instituted in their business models after being hit by a series of earthquakes in 2010 and 2011. The idea was to conduct interviews with business owners and analyse them using grounded theory methods. As this method is iterative and requires simultaneous data collection and analysis, a tentative model was proposed after first phase of the data collection and analysis. However, as a result of this process, it became apparent that owner-specific characteristics, action orientation and networks were more prominent in the data than business model elements. Although the SMEs in this study experienced several operational changes in their business models, such as a change of location, modifications to their payment terms or expanded/restricted target markets, the suggested framework highlights how owner-specific attributes ensured the recovery of their businesses. After the initial framework was suggested, subsequent interviews were conducted to test, verify, and modify the tentative model. Three aspects of business recovery emerged: (a) cognitive coping – the business owner’s mind-set and motive; (b) adaptive coping – the ability of business owner to take corrective actions; and (c) social capital – the social network of a business owner, including formal and informal connections and their significance. Three distinct groups were identified; self-sufficient SMEs, socially-based SMEs and surviving SMEs. This thesis proposes a grounded theory of business recovery for SMEs following a disaster. Cognitive coping and social capital enabled the owners to take actions, which eventually led to the desired outcomes for the businesses.

Research papers, University of Canterbury Library

Organisations play a vital role in assisting communities to recover from disasters. They are the key providers of goods and services needed in both response and recovery efforts. They provide the employment which both anchors people to place and supports the taxation base to allow for necessary recovery spending. Finally, organisations are an integral part of much day to day functioning contributing immensely to people’s sense of ‘normality’ and psychological wellbeing. Yet, despite their overall importance in the recovery process, there are significant gaps in our existing knowledge with regard to how organisations respond and recover following disaster. This research fills one part of this gap by examining collaboration as an adaptive strategy enacted by organisations in the Canterbury region of New Zealand, which was heavily impacted by a series of major earthquakes, occurring in 2010 and 2011. Collaboration has been extensively investigated in a variety of settings and from numerous disciplinary perspectives. However, there are few studies that investigate the role of collaborative approaches to support post-disaster business recovery. This study investigates the type of collaborations that have occurred and how they evolved as organisations reacted to the resource and environmental change caused by the disaster. Using data collected through semi-structured interviews, survey and document analysis, a rich and detailed picture of the recovery journey is created for 26 Canterbury organisations including 14 collaborators, six non-traders, five continued traders and one new business. Collaborations included two or more individual businesses collaborating along with two multi-party, place based projects. Comparative analysis of the organisations’ experiences enabled the assessment of decisions, processes and outcomes of collaboration, as well as insight into the overall process of business recovery. This research adopted a primarily inductive, qualitative approach, drawing from both grounded theory and case study methodologies in order to generate theory from this rich and contextually situated data. Important findings include the importance of creating an enabling context which allows organisations to lead their own recovery, the creation of a framework for effective post-disaster collaboration and the importance of considering both economic and other outcomes. Collaboration is found to be an effective strategy enabling resumption of trade at a time when there seemed few other options available. While solving this need, many collaborators have discovered significant and unexpected benefits not just in terms of long term strategy but also with regard to wellbeing. Economic outcomes were less clear-cut. However, with approximately 70% of the Central Business District demolished and rebuilding only gaining momentum in late 2014, many organisations are still in a transition stage moving towards a new ‘normal’.

Videos, UC QuakeStudies

Video of an interview with Tom Hooper, Chief Executive of the Canterbury Development Corporation, about the experiences of businesses in the aftermath of the 2010 and 2011 Canterbury earthquakes. Hooper talks about the changes in the workforce, business innovation, and the benefits of collaboration in Christchurch. He also talks about the importance of having a disaster recovery plan. This video is part of a series about businesses in Christchurch after the earthquakes.

Research papers, University of Canterbury Library

Insurance is widely acknowledged as a key component in an organisation's disaster preparedness and resilience. But how effective is insurance in aiding business recovery following a major disaster? The aim of this research was to summarise the experiences of both the insurance industry and businesses dealing with commercial insurance claims following the 2010 and 2011 Canterbury earthquakes.

Research papers, Victoria University of Wellington

We examine the role of business interruption insurance in business recovery following the Christchurch earthquake in 2011 in the short- and medium-term. In the short-term analysis, we ask whether insurance increases the likelihood of business survival in the aftermath of a disaster. We find only weak evidence that those firms that had incurred damage, but were covered by business interruption insurance, had higher likelihood of survival post-quake compared with those firms that did not have insurance. This absence of evidence may reflect the high degree of uncertainty in the months following the 2011 earthquake and the multiplicity of severe aftershocks. For the medium-term, our results show a more explicit role for insurance in the aftermath of a disaster. Firms with business interruption insurance have a higher probability of increasing productivity and improved performance following a catastrophe. Furthermore, our results show that those organisations that receive prompt and full payments of their claims have a better recovery, in terms of profitability and a subjective ‘”better off” measure’ than those that had protracted or inadequate claim payments (less than 80% of the claim paid within 2.5 years). Interestingly, the latter group does worse than those organisations that had damage but no insurance coverage. This analysis strongly indicates the importance not only of good insurance coverage, but of an insurance system that also delivers prompt claim payments. As a first paper attempting to empirically identify a causal effect of insurance on business recovery, we also emphasize some caveats to our analysis.

Research papers, University of Canterbury Library

The Canterbury earthquakes, which involved widespread damage in the February 2011 event and ongoing aftershocks near the Christchurch central business district (CBD), presented decision-makers with many recovery challenges. This paper identifies major government decisions, challenges, and lessons in the early recovery of Christchurch based on 23 key-informant interviews conducted 15 months after the February 2011 earthquake. It then focuses on one of the most important decisions – maintaining the cordon around the heavily damaged CBD – and investigates its impacts. The cordon displaced 50,000 central city jobs, raised questions about (and provided new opportunities for) the long-term viability of downtown, influenced the number and practice of building demolitions, and affected debris management; despite being associated with substantial losses, the cordon was commonly viewed as necessary, and provided some benefits in facilitating recovery. Management of the cordon poses important lessons for planning for catastrophic urban earthquakes around the world.

Audio, Radio New Zealand

A business owner wants more stringent background checks for people creating professional online profiles after discovering a potential business advisor is currently on home detention for corruption. Gerard Gallagher was convicted in June after trying to personally profit from information obtained while working for the Canterbury Earthquake Recovery Authority and Ōtākaro Limited between 2014 and 2017. Online, he promotes himself as a Business Advisor despite still serving a sentence of 12 months' home detention. Niva Chittock reports.

Research Papers, Lincoln University

This report focuses on the Waimakariri District Council's approach to earthquake recovery which was developed as an Integrated, Community-based Recovery Framework. This approach has been held up as exemplary in a number of fora and has received a great deal of interest and support both nationally and internationally. It has evolved as a result of the September earthquake and the thousands of aftershocks that have followed, along with the regulatory changes that have impacted on building safety and land availability since, but it builds on a set of pre-existing competencies and a well-established organisational culture that focusses on: * Working with communities and each other; * Keeping people informed; * Doing better everyday; * Taking responsibility; * Acting with integrity, honesty and trust. The report identifies, and speaks to, three themes or tensions drawn from either the disaster/emergency management literature or actual cases of recovery practice observed here in Canterbury over the last 2 years. These themes are the: 1. unique position of local government to undertake integrated or ‘holistic’ recovery work with community at the centre, versus the lack of clarity around both community and local government’s role in disaster recovery; 2. general consensus that good local government-community relationships are crucial to recovery processes, versus the lack of practical advice on how best to engage, and engage with, communities post-disaster; and 3. balancing Business as Usual (BaU) with recovery issues.Ministry of Civil Defence and Emergency Management.