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Antecedents of Disaster Preparation: What Factors Lead Firms to Prepare for Natural Hazards?

In a largely exploratory study, we investigate: 1) which factors affect how managers identify salient exogenous hazards?, and 2) what are the antecedents of firm preparation for these hazards (e.g., natural disaster risk)? Our analysis is conducted using a two part approach. Both parts are based on an international survey of 575 managers across 18 disaster-prone countries. The first part of the study focuses on examining the factors that affect managersi¯ identification of natural disaster risk. We find that experience with natural disasters and the locational natural hazard risk where a firm is located significantly affects managersi¯ identification of firm-specific natural disaster risk as an important firm issue. In the second part we look at the potential antecedents of firm preparedness for exogenous disasters. Our results show that learning and collaborative capabilities are positively related to preparation for natural disasters but self-solving approaches are not. Organizations that expect to go-i...