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All risk-taking is not the same: examining the competing effects of firm risk-taking with meta-analysis

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  • Mathias Arrfelt

    (Arizona State University)

  • Michael Mannor

    (University of Notre Dame)

  • Jennifer D. Nahrgang

    (Arizona State University)

  • Amanda L. Christensen

    (University of Cincinnati)

Abstract

Although researchers have vigorously studied organizational risk-taking for over 35 years, relatively little emphasis has been placed on theoretically differentiating the unique relationships between the many risk-taking choices organizations make and firm risk or firm performance. In this research, we propose a new framework that builds from March’s exploration–exploitation model to argue that different risk-taking choices can have substantially different influences on firm outcomes. We use meta-analysis to examine the unique and at times competing effects of four of the most commonly studied risk-taking choices on firm risk and firm performance. Results from a meta-analysis of 257 unique studies (N = 499,808) demonstrate support for our proposed framework and cast significant doubt on the idea that commonly studied firm risk-taking choices theoretically aggregate into one overarching risk-taking construct.

Suggested Citation

  • Mathias Arrfelt & Michael Mannor & Jennifer D. Nahrgang & Amanda L. Christensen, 2018. "All risk-taking is not the same: examining the competing effects of firm risk-taking with meta-analysis," Review of Managerial Science, Springer, vol. 12(3), pages 621-660, July.
    • Handle: RePEc:spr:rvmgts:v:12:y:2018:i:3:d:10.1007_s11846-016-0225-9
    DOI: 10.1007/s11846-016-0225-9
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