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Entrepreneurship and risk-taking in a post-disaster scenario

Author

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  • Orlando Llanos-Contreras

    (Universidad Católica de la Santísima Concepción)

  • Manuel Alonso-Dos-Santos

    (Universidad Católica de la Santísima Concepción)

  • Domingo Ribeiro-Soriano

    (Universitat de València)

Abstract

Family firms’ risk-taking behaviour is central to these firms’ ability to recover from major loses after a natural disaster. Natural disasters pose a threat to family firms’ continuity, a primary goal for this type of firm. Accordingly, it is necessary to understand how socioemotional wealth importance and entrepreneurial orientation interact to influence family firms’ ownership risk, performance hazard risk and control risk in a post-disaster scenario. Using a sample of family firms from the Bío-Bío region in Chile, which was devastated by a massive earthquake in 2010, we performed partial least squares structural equation modelling (PLS-SEM) and fuzzy-set qualitative comparative analysis (fsQCA). The PLS-SEM results partially support our hypotheses. The fsQCA results provide three, six and seven causal configurations that explain 34%, 67% and 72% of ownership risk, performance hazard risk and control risk, respectively. This article shows that the interaction between socioemotional wealth importance and entrepreneurial orientation is important to explain risk-taking behaviour by family firms in a post-disaster scenario.

Suggested Citation

  • Orlando Llanos-Contreras & Manuel Alonso-Dos-Santos & Domingo Ribeiro-Soriano, 2020. "Entrepreneurship and risk-taking in a post-disaster scenario," International Entrepreneurship and Management Journal, Springer, vol. 16(1), pages 221-237, March.
    • Handle: RePEc:spr:intemj:v:16:y:2020:i:1:d:10.1007_s11365-019-00590-9
    DOI: 10.1007/s11365-019-00590-9
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    2. Lijun Zhang & Wenlin Gao & Xiaoxiao Ma & Rongrong Gong, 2023. "Relationship between Disaster Shock Experience and Farmers’ Entrepreneurial Inclination: Crisis or Opportunity?," Agriculture, MDPI, vol. 13(7), pages 1-26, July.
    3. Qiao Wei & Jin-hui Luo & Xueli Huang, 2020. "Influence of Social Identity on Family Firms’ FDI Decisions: The Moderating Role of Internal Capital Markets," Management International Review, Springer, vol. 60(5), pages 651-693, October.
    4. Mahto, Raj V. & Llanos-Contreras, Orlando & Hebles, Melany, 2022. "Post-disaster recovery for family firms: The role of owner motivations, firm resources, and dynamic capabilities," Journal of Business Research, Elsevier, vol. 145(C), pages 117-129.
    5. Orlando Llanos-Contreras & Hugo Baier-Fuentes & María Huertas González-Serrano, 2022. "Direct and indirect effects of SEWi, family human capital and social capital on organizational social capital in small family firms," International Entrepreneurship and Management Journal, Springer, vol. 18(4), pages 1403-1418, December.
    6. Andreeva, Tatiana & Garanina, Tatiana & Sáenz, Josune & Aramburu, Nekane & Kianto, Aino, 2021. "Does country environment matter in the relationship between intellectual capital and innovation performance?," Journal of Business Research, Elsevier, vol. 136(C), pages 263-273.
    7. Guedes, Maria João & Patel, Pankaj C. & Kowalkowski, Christian & Oghazi, Pejvak, 2022. "Family business, servitization, and performance: Evidence from Portugal," Technological Forecasting and Social Change, Elsevier, vol. 185(C).
    8. Margarida Rodrigues & Mário Franco & Nuno Sousa & Rui Silva, 2021. "Reviewing COVID-19 Literature on Business Management: What It Portends for Future Research?," Sustainability, MDPI, vol. 13(11), pages 1-21, May.
    9. Francisco Adro & Cristina I. Fernandes & Pedro M. Veiga & Sascha Kraus, 2021. "Social entrepreneurship orientation and performance in non-profit organizations," International Entrepreneurship and Management Journal, Springer, vol. 17(4), pages 1591-1618, December.
    10. Gholamhossein Hosseininia & Hossein Sadeghi & Lida Sharafi & Hossein Azadi, 2022. "Assessing the willingness of agricultural graduates to participate in entrepreneurial business in Kermanshah Province, Iran," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 12(1), pages 479-497, December.
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