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Risk-taking for entrepreneurial new entry: risk-taking dimensions and contingencies

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  • Zhaoyang Guo

    (Xiamen University)

  • Wei Jiang

    (Xiamen University)

Abstract

Ambiguity remains in the literature regarding risk-taking conceptualisation and its association with the firm performance of new product entry. We unpack risk-taking into two dimensions: sensing risk-taking that manifests in a firm’s activities to identify and/or create new opportunities and seizing risk-taking that reflects activities of development and commercialisation to address identified opportunities. We argue that the two dimensions are conceptually distinct but interrelated. Using multi-sourced survey data for 186 Chinese manufacturing firms, we find that a focal firm’s new product success benefits most from adopting a concurrently high level of sensing risk-taking and seizing risk-taking when market growth is high but a high level of sensing risk-taking with a low level of seizing risk-taking when market growth is low.

Suggested Citation

  • Zhaoyang Guo & Wei Jiang, 2020. "Risk-taking for entrepreneurial new entry: risk-taking dimensions and contingencies," International Entrepreneurship and Management Journal, Springer, vol. 16(2), pages 739-781, June.
    • Handle: RePEc:spr:intemj:v:16:y:2020:i:2:d:10.1007_s11365-019-00567-8
    DOI: 10.1007/s11365-019-00567-8
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