No Organization Is an Island: How Crisis History, Temporal Distance, and Response Strategy Influence Organizational Reputation in Spillover Crises

Abstract

Crises affecting one organization can spill over and damage the reputation of uninvolved others. This study investigates how the similarity and temporal distance of an organization's crisis history, alongside response strategies, shape stakeholders’ perceptions of its reputation in a spillover crisis. A 2 (crisis similarity: similar vs. dissimilar) × 2 (temporal distance: distant vs. proximal) × 2 (response strategy: bolstering vs. differentiation) between-subjects factorial experiment was conducted (N = 422). Results largely support situational crisis communication theory (SCCT): greater temporal distance reduced perceived responsibility, lowering anger and increasing sympathy, which improved reputation. Interestingly, similar crisis histories boosted reputation more than dissimilar ones, suggesting blame is diffused when crises appear industry-wide. Differentiation strategy was more effective than bolstering, as they reduced responsibility and elicited favourable emotions. Findings extend SCCT to spillover contexts and offer practical guidance for innocent organizations navigating others’ crises.