Organizational Strategic Management Responses and Consequences During Covid-19 Era

Abstract

One consequence of the COVID-19 pandemic is that companies based on conventional (linear) value creation logic and traditional management solutions, even agricultural enterprises, are forced to make such strategic decisions and apply such strategic planning techniques which have not characterised them so far.

My basic assumption is that the circumstances have been triggered and accelerated the linear–nonlinear transformation at companies. In this sense, during the value creation of linear organisations, special sets of functions emerge that are nonlinear in their nature. These include the development of adaptation skills, activities focusing on innovation, creativity management, rethinking of HRM, coordinating digital transformation, and all the skills which are needed to successfully respond to an increasingly unpredictable (complex) operating environment.

The aim of the paper is to take a snapshot of the current literature dealing with strategic management responses on the consequences of pandemic and – in the same time – categorize the main suggestions, conclusions of the selected papers and documents in line with the steps of the strategic management process. In addition, I want to point out the core essence of the nonlinear management approach reflecting on the content of the literature. Finally, I analyzed the managerial responses of the Hungarian Blue Chip companies in line with the pandemic. The literature suggests a really wide range of solutions to handle the current situation affecting almost all of the most relevant strategy-making areas. The results show that the linear–nonlinear transformation has started in Hungary as well, but in many cases it is still in its infancy.