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Unraveling the link between managerial risk-taking and innovation: The mediating role of a risk-taking climate

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  • Ana García-Granero

    (INGENIO - Instituto de Gestión de la Innovación y del Conocimiento = Institute of Innovation and Knowledge Management - CSIC - Consejo Superior de Investigaciones Cientificas [España] = Spanish National Research Council [Spain] - UPV - Universitat Politècnica de València = Universitad Politecnica de Valencia = Polytechnic University of Valencia , MTS - Management Technologique et Strategique - EESC-GEM Grenoble Ecole de Management)

  • Óscar Llopis

    (GREThA - Groupe de Recherche en Economie Théorique et Appliquée - UB - Université de Bordeaux - CNRS - Centre National de la Recherche Scientifique, INGENIO - Instituto de Gestión de la Innovación y del Conocimiento = Institute of Innovation and Knowledge Management - CSIC - Consejo Superior de Investigaciones Cientificas [España] = Spanish National Research Council [Spain] - UPV - Universitat Politècnica de València = Universitad Politecnica de Valencia = Polytechnic University of Valencia)

  • Anabel Fernández-Mesa

    (INGENIO - Instituto de Gestión de la Innovación y del Conocimiento = Institute of Innovation and Knowledge Management - CSIC - Consejo Superior de Investigaciones Cientificas [España] = Spanish National Research Council [Spain] - UPV - Universitat Politècnica de València = Universitad Politecnica de Valencia = Polytechnic University of Valencia , Departament de Direcció d'Empreses - UV - Universitat de València)

  • Joaquín Alegre

    (GREThA - Groupe de Recherche en Economie Théorique et Appliquée - UB - Université de Bordeaux - CNRS - Centre National de la Recherche Scientifique)

Abstract

Scholars have proposed that taking risks in organizations is important for explaining innovation performance. Scholars traditionally have analyzed this link from two unconnected perspectives. From a managerial perspective, entrepreneurial orientation and leadership theories have been used to explain the positive relation between risk taking and innovation. From an employee perspective, creativity theory suggests that a risk-taking climate helps to explain innovative behaviors. However, there is little empirical research analyzing this link. This study examines the possibility of a connection between managers' risk-taking propensities, employees' risk-taking climate, and innovation performance. To do so, we test a quantitative model where the impact of the manager' risk-taking propensity on innovation is mediated by its effect on employees' risk-taking climate. Structural equation modeling is used to test the research hypotheses on a data set of 182 firms from the Spanish and Italian ceramic tile industry.

Suggested Citation

  • Ana García-Granero & Óscar Llopis & Anabel Fernández-Mesa & Joaquín Alegre, 2015. "Unraveling the link between managerial risk-taking and innovation: The mediating role of a risk-taking climate," Grenoble Ecole de Management (Post-Print) hal-01137650, HAL.
    • Handle: RePEc:hal:gemptp:hal-01137650
    DOI: 10.1016/j.jbusres.2014.10.012
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    Cited by:

    1. Dao H. Duong & Fredric W. Swierczek, 2019. "The Impact of Top Management Team and Organizational Culture on Product/Service and Process Innovation in Vietnamese Banks," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 9(2), pages 1-3.
    2. Cheng, Colin C.J. & Shiu, Eric C., 2022. "A two-level, longitudinal investigation into the effects of employee social entrepreneurship orientation and top management team decisions on product innovation," Technological Forecasting and Social Change, Elsevier, vol. 182(C).
    3. Zhou, Bing & Li, Yu-meng & Sun, Fang-cheng & Zhou, Zhong-guo, 2021. "Executive compensation incentives, risk level and corporate innovation," Emerging Markets Review, Elsevier, vol. 47(C).
    4. Tomasz L. Nawrocki & Izabela Jonek-Kowalska, 2022. "Is Innovation a Risky Business? A Comparative Analysis in High-Tech and Traditional Industries in Poland," JOItmC, MDPI, vol. 8(3), pages 1-29, August.
    5. Carina Cavalcanti & Andreas Leibbrandt, 2024. "Do Positive Externalities Affect Risk Taking? Experimental Evidence on Gender and Group Membership," Monash Economics Working Papers 2024-05, Monash University, Department of Economics.
    6. Shane W. Mathews & Masahiro Maruyama & Yuka Sakurai & Ralf Bebenroth & Edwina Luck & Hsiu-Li Chen & Edward Franco, 2018. "Internet resources and capabilities: Japanese SME risk-taking, industry and performance," Asia Pacific Business Review, Taylor & Francis Journals, vol. 24(5), pages 675-692, October.
    7. Dan, Sujan M. & Spaid, Brian I. & Noble, Charles H., 2018. "Exploring the sources of design innovations: Insights from the computer, communications and audio equipment industries," Research Policy, Elsevier, vol. 47(8), pages 1495-1504.
    8. Mohan, Mayoor & Voss, Kevin E. & Jiménez, Fernando R., 2017. "Managerial disposition and front-end innovation success," Journal of Business Research, Elsevier, vol. 70(C), pages 193-201.
    9. Simon Ashby & Trevor Buck & Stephanie Nöth-Zahn & Thomas Peisl, 2018. "Emerging IT Risks: Insights from German Banking," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 43(2), pages 180-207, April.
    10. Donard Games & Ranggi Putri Rendi, 2019. "The effects of knowledge management and risk taking on SME financial performance in creative industries in an emerging market: the mediating effect of innovation outcomes," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 9(1), pages 1-14, December.
    11. Wafa Tariq Waqar, 2020. "Board size and acquisition outcome: The moderating role of home country formal institutional development," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 41(4), pages 529-541, June.
    12. Jacek WOŹNIAK, 2017. "Some Factors Hindering Acceptance of Three Gamification Solutions in Motivation Systems, in Small and Medium Enterprises," Management Dynamics in the Knowledge Economy, College of Management, National University of Political Studies and Public Administration, vol. 5(4), pages 663-680, December.
    13. Ashish Varma & Kaushal Bhalotia & Karan Gambhir, 2020. "Innovating for competitive advantage: managerial risk-taking ability counterbalances management controls," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 24(2), pages 389-409, June.
    14. Ki Baek Jung & Seung-Wan Kang & Suk Bong Choi, 2020. "Empowering Leadership, Risk-Taking Behavior, and Employees’ Commitment to Organizational Change: The Mediated Moderating Role of Task Complexity," Sustainability, MDPI, vol. 12(6), pages 1-18, March.
    15. Michael Espindola Araki & Henrique Castro Martins, 2022. "Integrating uncertainty and governance into a capital structure puzzle: can risk-taking and rule-taking explain zero-leverage firms?," Review of Managerial Science, Springer, vol. 16(6), pages 1979-2034, August.
    16. Antonio Duréndez & Julio Dieguez-Soto & Antonia Madrid-Guijarro, 2023. "The influence of CEO’s financial literacy on SMEs technological innovation: the mediating effects of MCS and risk-taking," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 9(1), pages 1-26, December.
    17. Kun Su & Rui Wan & Victor Y. Song, 2018. "Pyramidal structure, risk‐taking and firm value: Evidence from Chinese local SOEs," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 26(3), pages 401-427, July.
    18. Braumann, Evelyn C. & Grabner, Isabella & Posch, Arthur, 2020. "Tone from the top in risk management: A complementarity perspective on how control systems influence risk awareness," Accounting, Organizations and Society, Elsevier, vol. 84(C).
    19. Jeffrey E. Stambaugh & John Martinez & G. T. Lumpkin & Niyati Kataria, 2017. "How well do EO measures and entrepreneurial behavior match?," International Entrepreneurship and Management Journal, Springer, vol. 13(3), pages 717-737, September.
    20. Mittone, Luigi & Morreale, Azzurra & Vu, Thi-Thanh-Tam, 2022. "What drives innovative behavior?- An experimental analysis on risk attitudes, creativity and performance," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 98(C).
    21. Marfri Gambal & Aleksandre Asatiani & Julia Kotlarsky, 2022. "Strategic Innovation Through Outsourcing: A Theoretical Review," Papers 2206.00982, arXiv.org.
    22. Rui Li & Yongmei Cui & Yajun Zheng, 2021. "The Impact of Corporate Strategy on Enterprise Innovation Based on the Mediating Effect of Corporate Risk-Taking," Sustainability, MDPI, vol. 13(3), pages 1-17, January.
    23. Jeffrey E. Stambaugh & John Martinez & G. T. Lumpkin & Niyati Kataria, 0. "How well do EO measures and entrepreneurial behavior match?," International Entrepreneurship and Management Journal, Springer, vol. 0, pages 1-21.

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    Innovation performance; managers´ risk-taking; risk-taking climate; signaling theory; social cognitive theory;
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