79 International Academic Research Journal of Business and Technology 1(2) 2015 Page 79-87 Social Media And Firm Absorptive Capacity In Crisis Communication Preparedness Nurasfalina Dahlan 1 , Sarina Muhamad Noor 2 1 Faculty of Business Management, Universiti Teknologi MARA (UiTM) Shah Alam, Malaysia 2 Faculty of Business Management, Universiti Teknologi MARA (UiTM) Perlis, Malaysia Corresponding email: aszdahlan@ymail.com 1 , sarina@perlis.uitm.edu.my 2 Article Information Abstract Keywords Tactical preparedness; Contact lists; Acquisition; Assimilation; Transformation Each organization is vulnerable to any crises. A proper method to handle such event is important as it reflects organizations’ reputation. However, limited studies were conducted on crisis communication preparedness in the hotel industry even though there are many inevitable events that make the industry vulnerable. Social media is commonly used to spread information on these events. However, the emphasis on its usage by the organizations is not widely discovered. In addition, capability of understanding and applying the knowledge to deal with any potential crisis situation would require further investigation on the firm. This research examined the relationship between social media usage and absorptive capacity in enhancing crisis communication preparedness. A total of 169 of questionnaires were distributed in the hotel industry, West Malaysia. The findings revealed different dimensions on the crisis communication preparedness and indicated the significant relationship between these variables. The findings help practitioners to engage in effective communication in dealing with crises. INTRODUCTION Each organization or industry is susceptible to any unexpected events which arise from external and internal environment. Crisis may threaten and affect the sustainability of the businesses and firms’. During a crisis, lots of information may reach the public. Some of the information is inaccurate which can tarnish firms’ reputation. Hence, through crisis communication preparedness, firms’ are able to maintain their image by providing accurate information to various stakeholders before, during and after a crisis (Coombs, 2014). Generally, crisis is perceived as a situation that has a potential to occur and will give negative impacts either directly or indirectly. When a crisis occurs, firms should clearly inform and respond to their stakeholders soonest possible as failure to do so will result in negative views of various parties (Holmes, 2011; Rousaki & Alcott, 2006). Therefore, every firm should prepare themselves in managing their crisis plans in an appropriate manner. Effective communication is necessary to deliver the information available during any crisis (Penrose, 2000) and to rebuild tourist confidence aftermath of the crisis (Law, 2006). Without it, an organization is unable to deliver and communicate the information to their stakeholders’ effectively as well as to retain their reputation.