Risk-taking Orientation Research Articles

Optimal employment decisions in the hospitality sector under uncertain productivity loss due to catastrophe: A mean-variance utility approach

How do exogenous disruptions such as natural disasters affect employment and labour productivity in the hospitality sector? This article addresses this crucial issue by proposing a two-moment (i.e., mean-variance) decision model to determine the pattern of productivity and employment losses in this sector. In our model, a representative hotel owner selects the optimal employment level based on the risk-taking orientation of the manager. During a catastrophe, a high operational fixed investment cost causes optimal employment decisions for a hotel owner to become an endogenous choice variable. Our proposed model and a calibration exercise predict that, on average, as operational uncertainty increases, expected profits decrease substantially, causing managers to terminate employees. Government intervention in the form of a lumpsum grant can be beneficial, but the level of the grant should be contingent on the risk preference of the hotel management. For instance, restoring complete employment with a substantial lump-sum aid may take longer. We discuss the implications of our findings for hospitality sector research and tourism industry professionals.

Name is Sheikh Hasina (HPM): The Power of Motivation & Ability for Political Maneuvering Thru Psychological Behaviors as Foundations

HPM Sheikh Hasina having served as Prime Minister of Bangladesh for over 19 years. It has secured her to be the longest serving PM in Bangladesh-history. Thus, this study examines whether the power of motivation and ability in political maneuvering through psychological behaviors have served it effectively. It conducted SWOT and PEST analyses of HPM’s power of motivation and ability for political maneuvering that secured the long-term. The SWOT analysis here examined political Strengths (S), Weaknesses (W), Opportunities and Threats (T) that a leadership can review. The PEST analysis here examined the Political (P), Economic (E), Social (S), and Technological (T) issues involved with the power of political maneuvering for getting things done. For psychological behavioral assessment in politics, few prepared speeches were in review, which indicates HPM’s propensity for strategies of cooperation and risk-taking orientation in most cases where conflicting strategy is found rarely. Here the power of motivation and ability has transformed how a government provides effective services in any developing country like Bangladesh. This political-maneuvering skill is named as Akim’s Model, which can ensure success in political arena with a reward of long-term leadership in a country like Bangladesh. HPM has set an example in the 21st century business-driven world.

Innovation Promoter or Inhibitor? Non-Family CEO's Effect on Innovation in Family Businesses

Increasing scholarly and practical attention is being paid to determining whether a nonfamily chief executive officer (NFC) is a remedy for the lack of firm innovativeness in the face of ever-changing markets. Departing from the inconclusive findings of NFC research, this article aims to revisit the NFC effect on a family firm's investment in innovation, which is subject to the contextual influence of governance arrangements. In a sample of 6201 firm-year observations of Taiwanese family firms in high-tech industries in the period from 2002 to 2017, we found that the mixed relationship between the NFC and innovation investment is better clarified by considering family involvement in management (FIM) and board independence (BI), both of which yield significantly negative and positive moderating effects on the innovation investment of NFCs, respectively. This article further examines the configurational effect of two moderators on the main relationship, and shows that the negative effect of FIM not only outweighs, but also deteriorates, the positive moderating effect of BI. Our findings contribute not only to family business research, but also to innovation literature by arguing that the risk-taking orientation of an NFC is not universally held, but rather is deliberately arranged for effect.

Risk-taking under time-sensitivity in Sino-Pak negotiation in the context of the BRI project

China and Pakistan took part in the Belt and Road Initiative (BRI) project through CPEC (China–Pakistan Economic Corridor), but it faced many challenges at the negotiation and implementation stages. While their firms and individuals have come closer to exploring the scope and scales of opportunities, they have faced difficulties associated with uncertainty and time (risk-taking behaviour directly and indirectly through time sensitivity). Culturally, the potential differences in the risk orientation are plausible, but the contextualised differences in the negotiation process are not clear at the style level of analysis. This article explores whether how and why the negotiation style of China and Pakistan differs despite the visible values ahead of them. Based on postgraduate students in business schools, we investigated the notion of risk-taking orientation and moderation of the time sensitivity to both sides. The survey was based on 1398 participants: 917 (66%) Chinese and 481 (34%) Pakistani participants responded to risk-taking (low-high) and time sensitivity (low-high). The results are consistent across models. Directly, Chinese negotiators are more risk-takers than Pakistani negotiators. Indirectly, time-sensitive Chinese negotiators are low risk-takers than time-sensitive Pakistani negotiators. The study extends the risk orientation and time-sensitivity in perceptual assumptions in the cultural context.

Ambidexterity and innovation in cluster SMEs: evidence from Indonesian manufacturing

ABSTRACT Resource constraints are widely regarded as a major barrier for small and medium-sized enterprises (SMEs) to achieve ambidexterity. While operating in a cluster may help SMEs alleviate resource constraints, it also creates the risk of over embeddedness within the cluster whereby firms focus excessively on exploitation that hampers their ability to achieve ambidexterity. We propose that cluster SMEs with risk-taking orientation and that pursue knowledge search beyond cluster boundaries can overcome over embeddedness within their clusters and achieve ambidexterity. We further suggest that ambidexterity can be a critical competence for SMEs to realise superior innovation performance. Analysis of data gathered through face-to-face interviews and questionnaires from 109 owner-managers of SMEs in a footwear manufacturing cluster in Indonesia support these predictions. Extra-cluster ties and risk taking are critical antecedents of ambidexterity in cluster SMEs. Further, ambidexterity mediates the effects of risk taking fully, and extra-cluster ties partially, on SMEs’ innovation performance.

The evolution of emerging market firms and time until subsidiary exit: Competitive dynamics of domestic market followers and contingency factors

The literature has tended to overlook the great divergence in the competitive dynamics of firms in emerging economies. Drawing on the strategic competitive dynamics literature and prospect theory, this article aims to deepen our understanding of the competitive dynamics among firms in emerging economies and how the dissatisfaction of dominated firms with their domestic position affect foreign subsidiary exit time. Using hazard models with an accelerated failure time (AFT) specification, we investigate the impact of a firm’s domestic market position on subsidiary exit time using a longitudinal sample of 6,651 subsidiary-year observations and 735 subsidiary exits of 296 South Korean parent firms with international operations in 64 countries over a 27-year span (1990–2016). The empirical results suggest that the domestic market position affects the risk-taking orientation of dominated firms and plays a critical role in the internationalization of firms in emerging economies. Specifically, dominated firms, compared to dominant firms, have some advantages when investing abroad, notably in less-developed countries.

Cross-level effects of entrepreneurial orientation and ambidexterity on the resilience of small business owners

ABSTRACT This study explores the effect of a firm’s entrepreneurial orientation on the individual resilience of small business owners and how this relationship is moderated by firm-level ambidexterity. We build on social cognitive theory to discuss whether and how the three dimensions of entrepreneurial orientation that is, innovativeness, proactivity, and risk-taking) interact with the two components of ambidexterity (that is, exploration and exploitation) to jointly influence the resilience of small business owners. Our findings indicate that a risk-taking orientation is positively related to resilience and that an innovativeness orientation causes resilience to suffer when an exploitative approach is pursued. For firms with a proactivity orientation, however, exploitation has a positive moderating effect. Our study adds to the literature by linking firm-level determinants and individual-level outcomes in the special context of small businesses.

A Gendered View of Risk Taking in Venture Philanthropy

Relying on gender-role congruity theory, this paper investigates the relationship between the gender of the top management teams of venture philanthropy firms and their business risk-taking orientation. The research also assesses if and how experience moderates this relationship. Using a combination of survey data to capture the venture philanthropy firm’s risk orientation and biographical data to identify managers’ gender and experience, it finds that only gender affects business risk-orientation in these firms. Surprisingly, this is the opposite direction than expected, whereby teams with a higher proportion of women have a higher risk-taking profile. This suggests the need to revise the applicability of gender role congruity theory, the existence of a gender-bind dilemma, and the relevance of context in venture philanthropy.

Risk-taking in Impact Investing: The Role of Gender and Experience

Relying on gender role congruity theory, this paper investigates the relationship between the gender of the top management team of venture philanthropy (VP) firms and their risk-taking orientation. Our research also assesses if and how experience moderates this relationship. Using a combination of survey data to capture the VP firm’s risk orientation, and biographical data to identify managers’ gender and experience, we find that only gender affects the risk-taking orientation in these firms. Yet, this is in an opposite direction than what theorized, whereby teams with a higher proportion of women have a higher risk-taking profile. This suggests the existence of a gender bind dilemma in VP.

The Effect of Entrepreneurial Marketing on the Performance of Small and Medium-sized Enterprises

Entrepreneurial marketing is a non-conventional marketing technique that provides business owners a method to successfully operate their business with limited resources. The main objective of this study is to therefore investigate whether entrepreneurial marketing can affect the performance of small and medium-sized enterprises operating in Ethiopia, specifically in the city of Jimma. A purposive sampling technique was employed to gather data from 100 business owners that have been on market for more than 7 years. The data were analysed using Minitab and SPSS statistical software packages. The study showed that some elements of entrepreneurial marketing indeed affect the performance of small and medium-sized enterprises. Innovation orientation and customer intensity have a positive relationship with the performance of small and medium-sized enterprises and are statistically significant, while risk-taking orientation has a negative relationship and is statistically significant. It is therefore recommended that business owners apply the concept of entrepreneurial marketing to leverage their limited resources to cope with competitors and maintain the sustainability of their business.

문화예술전공 대학생의 직무만족, 고용장벽, 위험감수성향이 창업의도에 미치는 영향

다수의 창업의도 논문은 창업유인요인에 대해 연구하고 있으나 실제 창업동기는 생계유지 등 창업압박요인이 높은 비중을 차지하고 있다. 이런 현실을 고려할 때 창업연구에서 고용장벽, 직무만족수준 등 창업압박요인을 연구하여야 한다.<BR> 본 논문은 문화예술인의 다수가 프리랜서 혹은 자기고용상태인 창업가라는 사실에 주목하였다. 문화예술 전공자를 대상으로 개인의 내외부 환경이 창업의도에 어떤 영향을 미치는지 계획적 행동이론을 기반으로 연구하였다. 개인이 취업과 창업사이에서 창업의도를 선택하게 된 요인을 탐색하고 이들 요인과 창업의도와의 관계에 대해 연구하였다.<BR> 연구결과 직무불만족과 고용장벽은 대표적인 창업압박요인이었다. 직무만족은 창업결과기대와 창업의도에 부정적인 영향을 주었으며 인지된 고용장벽은 창업결과기대와 창업의도에 긍정적인 영향을 주었다. 개인의 위험감수성은 대표적인 기업가정신 중 하나로 창업자기효능감에 긍정적인 영향을 주었다. 창업결과기대와 창업자기효능감은 창업의도에 긍정적인 영향을 주었다.

Effects of entrepreneurial marketing on new ventures' exploitative and exploratory innovation: The moderating role of competitive intensity and firm size

EM is a strategic orientation that draws on seven elements: proactiveness, opportunity-focus, risk-taking orientation, innovation orientation, customer satisfaction orientation, value creation and resource leveraging. These elements reinforce each other in a synergistic manner. We investigate how EM affects a new venture's exploitative and exploratory innovation activities. To identify conditions under which EM is more or less effective, we analyze the relationship between EM and exploitative and exploratory innovation under conditions of high and low environmental competitiveness and high and low levels of firm size. Based on survey data from 146 German new ventures up to ten years old in the B2B sector, our results provide evidence of a significant and positive effect of EM on exploitative and exploratory innovation. We find, further, that under conditions of high competitive intensity, the effects of EM on exploratory innovation strengthen, while low levels of competitive intensity do not affect the relationship between EM and exploratory innovation. Our results also show that for larger firms, the positive effects of EM on exploitative innovation are weaker, while for smaller firms, those effects are stronger.

A Conceptual Paper Approach of the influence of Risk-taking Orientation Behaviour towards Ex-Juvenile Entrepreneurs Delinquent Behavioral Change in Katsina State, Nigeria

A Conceptual Paper Approach of the influence of Risk-taking Orientation Behaviour towards Ex-Juvenile Entrepreneurs Delinquent Behavioral Change in Katsina State, Nigeria

Peran Dimensi-Dimensi Entrepreneurial Marketing dalam Mendorong Kesuksesan Bisnis UMKM di Industri Ekonomi Kreatif

This study aims to analyze the influence of entrepreneurial marketing dimensions, including proactiveness, opportunity-focused, risk-taking orientation, innovation-oriented, customer intensity, resource leveraging, and value creation of Small and Medium Enterprises (SMEs) business success in the creative economy industry. The study also examined the moderating role of company age on the entrepreneurial marketing dimension's influence on SME's business success. The study used survey methods by distributing questionnaires to 265 SME business owners in North Kalimantan. The sampling method uses nonprobability sampling with a convenience sampling technique. Data were analyzed using multiple linear regression analyses and moderated tests using the macro process of SPSS Hayes. The results of this study indicated that in the context of SMEs in the creative industry, customer intensity and value creation play a critical role in business success. Meanwhile, proactiveness, opportunity-focused, risk-taking orientation, innovation-oriented, and resource leveraging found no impact on SMEs' business success. The research also proves that the company's age moderated the impact of customer intensity on SME's success but does not moderate the influence of value creation to SME's business success.

Risk Taking in Venture Philanthropy: The Influence of Human Capital and Gender

Relying on human capital and gender role congruity theory, this paper seeks to identify the extent to which the top management team’s human capital affects the risk-taking orientation of impact-focused investors. We then look at how gender moderates this relationship. We empirically ground our analysis in the context of venture philanthropy (VP) firms, a subset of the broader impact investing sector which is more hands-on and focused on funding social ventures. Relying on a combination of survey data to measure the VP firm’s risk orientation, and biographical data to identify top managers’ human capital, we find that neither commercial nor social human capital alone affect the risk orientation of VP investors. However, results show that gender, independently of the human capital, positively affects risk-taking when top managers are women. In the case of men, human capital plays a role. Contrary to expectations, teams with more men who have higher human capital garnered in a commercial endeavor have a lower risk-taking orientation while those with more human capital garnered in the social sector increases take higher risks. This suggests the existence of a gender bind dilemma in the social investment sector both for men and for women.

Entrepreneurial Orientation: Its Relationship with the Entrepreneur’s Subjective Success in SMEs

Previous research has underlined, normally from a firm-level perspective, the importance of entrepreneurial orientation in explaining objective entrepreneurial success. Nevertheless, its impact on the perception of entrepreneurs with respect to what entrepreneurial success means to them remains underexplored. Based on a sample of manager-owners of small companies, and contemplating entrepreneurial orientation as an individual concept, we used a time-lagged design with two data-collection points to explain the effect of innovative orientation (IO), risk-taking orientation (RTO) and proactive orientation (PO) on the subjective success of entrepreneurs. Our results show that only one dimension of entrepreneurial orientation, proactive orientation, is associated with entrepreneurs’ satisfaction with their activity, life, organization and the growth of the company.

Learning Analytics to Explore Dropout in Online Entrepreneurship Education

The technological disruption of E-Learning offers Entrepreneurship Education (EE) an unprecedented opportunity to leverage the affordances of web 2.0 and to widen the scope of entrepreneurship educational programs. However, in practice, high dropout rates in online courses (near 90%) pose major challenges to EE researchers. In this paper, we use learning analytics to explore the case of dropout during a female-oriented online entrepreneurship educational program. We observed that the evolution of dropouts and learning behavior of the participants in this program is not linear in time. Persistence decays in a two-step process: The first dropout phase reaches approximately 30% before the middle of the program and then stabilizes around that number. A second dropout phase is triggered in the last quarter of the program and it continues declining until the end of the program. This dropout pattern corresponds to the interaction indicators at aggregated level: Before the middle of the program the level of interaction drops together with the number of active users. However, the reduction in the interaction frequency is disproportionate in relation to the fall of number of the active users. After dividing by the percentage of active users the number of interactions still drops before the middle of the program. Using social network analysis (SNA) we show that initial dropouts have a considerable effect on the connectivity of the communication network, this is consistent with the observed decrease in social interactions. We also found significant correlations between entrepreneurial competencies and indicators of learning behavior and persistence, at the individual level. In line with the relevant literature, the most significant feature associated with persistent behavior was found to be the risk-taking orientation. Our findings suppose the first step towards an empirical model of persistence in Entrepreneurship Education online programs providing valuable insights for future research and for developing retention methods in online courses.

Risk-Taking Orientation, Conflict, and Creativity: A Multilevel Perspective

빠르게 변화하는 환경으로 인해 조직은 끊임없이 혁신을 추구하고 있다. 이러한 기업의 혁신에 중요한 요소 중 하나가 창의성이다. 따라서 조직행동 분야에서는 창의성의 선행요인을 밝히기 위한 연구들이 진행되고 있다. 또한 최근 들어 많은 조직들이 팀을 중심으로 성과를 관리하고 있기에 개인 창의성만큼이나 팀 창의성에 대한 연구 관심도 높아지고 있다. 이에 본 연구에서는 다수준 관점에 따라 개인 창의성과 팀 창의성의 발현과정이 서로 다르게 나타날 것을 예상하고 이를 검증하였다. 먼저, 개인 수준에서는 위험감수성향이 높을수록 창의성도 높아질 것으로 보았다. 반면, 팀 수준의 위험감수 성향은 팀 갈등을 초래하고, 팀 갈등은 팀 창의성에는 부정적 영향을 미칠 것으로 보았다. 가설을 검증하기 위해 국내 여러 기업의 구성원들에게 설문조사를 실시하였으며, 최종적으로 95개 팀 411명의 데이터를 분석에 이용하였다. 또한 본 연구의 데이터 구조가 다수준인 것을 감안하여 다수준구조방정식(Multilevel Structural Equation Modeling)을 활용하여 가설을 검증하였다. 가설 검증 결과 개인 수준에서는 위험감수성향이 높을수록 창의성이 높아지는 것으로 나타났다. 팀 수준에서는 팀 위험감수성향이 높을수록 팀 갈등이 높아지며, 팀 갈등은 팀 창의성을 약화 시키는 것으로 나타났다. 본 연구를 바탕으로 개인의 위험감수성향은 창의성에 긍정적 영향을 미칠 수 있지만, 팀 수준에서는 갈등으로 이어지지 않게 관리해야 할 필요성이 있음을 확인할 수 있었다. 이러한 결과는 창의성연구 확장이라는 의의를 지닐 것으로 기대된다.As employee creativity is an important source of organizational innovation and competitive advantage, organizations are increasingly seeking to foster individual creativity. In addition, with teamwork common in many organizations, individual creativity is often enacted in this context. Consistent with these trends, researchers have shown increasing interest in individual and team creativity. The purpose of this study was to examine the effect of risk-taking orientation on individual and team creativity. We proposed that team risk-taking orientation associated with team creativity through team conflict. This study conducted multi-level analysis considering individual and team level simultaneously when team characteristics are composed of individual characteristics. To test our hypotheses, we collected survey-based data from diverse industries 411 employees and 95 teams in South Korea and utilized multilevel structural equation modeling. Also we used Monte Carlo Method for assessing mediation effect. The results revealed that risk-taking orientation was positively associated with individual creativity, but team risk-taking orientation was positively related to team conflict and that team conflict negatively related to team creativity. Moreover, the indirect effect of team risk-taking orientation through team conflict on team creativity. Based on these results, we discuss the theoretical and managerial implications of the study and suggest directions for future research on creativity.

A Study on Product Innovation Portfolio and Customer Value Creation: Bridging Entrepreneurial Risk-Taking Orientation and Marketing Performance

The aims of this study is to investigate the role of product innovation portfolio and customer value creation in bridging the gap of research entrepreneurial risk-taking orientation and marketing. Wood crafts firms that are in the city of Bandung, Yogyakarta and Solo which has been regarded as a creative city in Indonesia used as a sample. Sampling was done by using a combination of purposive sampling and convenience sampling . Data were collected using a questionnaire given directly to the respondent. The total data used for analysis about 172 respondents. Data analysis used in this research is Structural Equation Modeling ( SEM) with the AMOS program. The results show that product innovation portfolio serves as mediating on the relationship between entrepreneurial risk-taking orientation and marketing performance. Futhermore, the results also find that customer value creation has a positive effect on marketing performance. Normal 0 false false false IN X-NONE X-NONE

Work Values: A Comparative Research between Italian and Spanish Youth

A dynamic framework that is «clearly identifiable» in relation to values research (Super, 1995) is essential in order to identify the meaning of interests, motivations, attitudes and ethics (Bellotto, 2004), focused on young generations facing work world. This research aims to: identify work values and values’ orientation in relation to work; specify generational and cultural differences. The research topic consists of: a sample of Spanish, composed by 230 persons, that has a more materialistic and risk-taking orientation that, even if it decreases with age, show how young Spanish are more competitive; in the Italian sample there are 203 subjects, that shows differences in terms of old and young generations regarding value orientation; the group of people from 18 to 29 years old has a significant materialistic self-orientation, definitely high if compared to the other groups. The results show the importance of work values and contribute to studies about how various groups adopt different values depending on cultural and social needs.