UNDERSTANDING INDUSTRIAL CRISES[1]

This article provides a conceptual framework for understanding industrial crises. These crises are organizationally-based disasters which cause extensive damage and social disruption, involve multiple stakeholders, and unfold through complex technological, organizational and social processes. The characteristics of industrial crises are illustrated through a comparison of three diverse crises - the Bhopal disaster, the Tylenol poisonings, and the explosion of the space shuttle Challenger. Relationships among these characteristics are presented in a model of industrial crisis. Some issues for further research are identified.