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Risk Taking, Innovativeness And Competitive Rivalry: A Three-Way Interaction Towards Firm Performance

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Author Info

  • JENNY GIBB

    ()
    (Department of Strategy and Human Resource, Management University of Waikato, Private Bag 3105 Hamilton, New Zealand)

  • JARROD M. HAAR

    ()
    (Department of Strategy and Human Resource, Management University of Waikato, Private Bag 3105 Hamilton, New Zealand)

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    Abstract

    It is unclear how entrepreneurial firms should engage in risk taking and innovativeness in highly competitive environments. Using a sample of 167 New Zealand firms, we provide new insight to identify a significant three-way interaction effect between risk taking, innovativeness and competitive rivalry towards firm performance. We found high risk taking and innovativeness to be linked to higher firm performance, irrespective of the extent of competitive rivalry. Low innovativeness was found to be associated with differing levels of firm performance depending on the level of rivalry. These results have important implications for future research and for practitioners where competitive rivalry can influence dimensions of performance in entrepreneurial firms in ways that have not been previously recognized.

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    Bibliographic Info

    Article provided by World Scientific Publishing Co. Pte. Ltd. in its journal International Journal of Innovation Management.

    Volume (Year): 14 (2010)
    Issue (Month): 05 ()
    Pages: 871-891

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    Handle: RePEc:wsi:ijimxx:v:14:y:2010:i:05:p:871-891

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    Related research

    Keywords: Entrepreneurial orientation; risk taking; innovativeness; competitive rivalry; firm performance;

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