IDEAS home Printed from https://ideas.repec.org/a/eee/jbrese/v68y2015i5p1094-1104.html
   My bibliography  Save this article

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

Author

Listed:
  • García-Granero, Ana
  • Llopis, Óscar
  • Fernández-Mesa, Anabel
  • Alegre, Joaquín

Abstract

Scholars have proposed that taking risks in organizations is important in explaining innovation performance. Analysis of this link has traditionally been based on two unconnected perspectives. From a managerial perspective, entrepreneurial orientation and leadership theories have been used to explain the positive relationship between managers' risk-taking and innovation. On the other hand, research on creativity suggests that a risk-taking climate helps to explain the generation of novel ideas. However, there is little empirical research analyzing this link. This study examines the possibility of a connection between managerial risk-taking propensity, risk-taking climate and innovation performance. To do so, we test a quantitative model where the impact of the manager's risk-taking propensity on innovation is mediated by its effect on 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

  • García-Granero, Ana & Llopis, Óscar & Fernández-Mesa, Anabel & Alegre, Joaquín, 2015. "Unraveling the link between managerial risk-taking and innovation: The mediating role of a risk-taking climate," Journal of Business Research, Elsevier, vol. 68(5), pages 1094-1104.
  • Handle: RePEc:eee:jbrese:v:68:y:2015:i:5:p:1094-1104
    DOI: 10.1016/j.jbusres.2014.10.012
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0148296314003427
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Fariborz Damanpour, 2001. "The Dynamics of the Adoption of Product and Process Innovations in Organizations," Journal of Management Studies, Wiley Blackwell, vol. 38(1), pages 45-65, January.
    2. Gumusluoglu, Lale & Ilsev, Arzu, 2009. "Transformational leadership, creativity, and organizational innovation," Journal of Business Research, Elsevier, vol. 62(4), pages 461-473, April.
    3. Jatinder S. Sidhu & Henk W. Volberda & Harry R. Commandeur, 2004. "Exploring Exploration Orientation and its Determinants: Some Empirical Evidence," Journal of Management Studies, Wiley Blackwell, vol. 41(6), pages 913-932, September.
    4. Chen, Chung-Jen & Huang, Jing-Wen, 2009. "Strategic human resource practices and innovation performance -- The mediating role of knowledge management capacity," Journal of Business Research, Elsevier, vol. 62(1), pages 104-114, January.
    5. Core, John & Guay, Wayne, 1999. "The use of equity grants to manage optimal equity incentive levels," Journal of Accounting and Economics, Elsevier, vol. 28(2), pages 151-184, December.
    6. Coles, Jeffrey L. & Daniel, Naveen D. & Naveen, Lalitha, 2006. "Managerial incentives and risk-taking," Journal of Financial Economics, Elsevier, vol. 79(2), pages 431-468, February.
    7. Justin J. P. Jansen & Frans A. J. Van Den Bosch & Henk W. Volberda, 2006. "Exploratory Innovation, Exploitative Innovation, and Performance: Effects of Organizational Antecedents and Environmental Moderators," Management Science, INFORMS, vol. 52(11), pages 1661-1674, November.
    8. Wu, Hsueh-Liang, 2008. "When does internal governance make firms innovative," Journal of Business Research, Elsevier, vol. 61(2), pages 141-153, February.
    9. Coombs, R. & Narandren, P. & Richards, A., 1996. "A literature-based innovation output indicator," Research Policy, Elsevier, vol. 25(3), pages 403-413, May.
    10. Alexander S. Alexiev & Justin J. P. Jansen & Frans A. J. Van den Bosch & Henk W. Volberda, 2010. "Top Management Team Advice Seeking and Exploratory Innovation: The Moderating Role of TMT Heterogeneity," Journal of Management Studies, Wiley Blackwell, vol. 47(7), pages 1343-1364, November.
    11. N. Venkatraman, 1989. "Strategic Orientation of Business Enterprises: The Construct, Dimensionality, and Measurement," Management Science, INFORMS, vol. 35(8), pages 942-962, August.
    12. Einar Lier Madsen, 2007. "The significance of sustained entrepreneurial orientation on performance of firms -- A longitudinal analysis," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 19(2), pages 185-204, March.
    13. Yuhyung Shin, 2012. "CEO Ethical Leadership, Ethical Climate, Climate Strength, and Collective Organizational Citizenship Behavior," Journal of Business Ethics, Springer, vol. 108(3), pages 299-312, July.
    14. Hubert Gatignon & Michael L. Tushman & Wendy Smith & Philip Anderson, 2002. "A Structural Approach to Assessing Innovation: Construct Development of Innovation Locus, Type, and Characteristics," Management Science, INFORMS, vol. 48(9), pages 1103-1122, September.
    15. Spagnoli, Paola & Caetano, Antonio & Santos, Susana Correia, 2012. "Satisfaction with job aspects: Do patterns change over time?," Journal of Business Research, Elsevier, vol. 65(5), pages 609-616.
    16. Zahra, Shaker A. & Covin, Jeffrey G., 1995. "Contextual influences on the corporate entrepreneurship-performance relationship: A longitudinal analysis," Journal of Business Venturing, Elsevier, vol. 10(1), pages 43-58, January.
    17. Wiklund, Johan & Shepherd, Dean, 2005. "Entrepreneurial orientation and small business performance: a configurational approach," Journal of Business Venturing, Elsevier, vol. 20(1), pages 71-91, January.
    18. Jörg Meyer-Stamer & Claudio Maggi & Silene Seibel, 2004. "Upgrading in the tile industry of Italy, Spain and Brazil: insights from cluster and value chain analysis," Chapters,in: Local Enterprises in the Global Economy, chapter 7 Edward Elgar Publishing.
    19. James G. March & Zur Shapira, 1987. "Managerial Perspectives on Risk and Risk Taking," Management Science, INFORMS, vol. 33(11), pages 1404-1418, November.
    20. Mojca Duh & Jernej Belak & Borut Milfelner, 2010. "Core Values, Culture and Ethical Climate as Constitutional Elements of Ethical Behaviour: Exploring Differences Between Family and Non-Family Enterprises," Journal of Business Ethics, Springer, vol. 97(3), pages 473-489, December.
    21. Redmond, Matthew R. & Mumford, Michael D. & Teach, Richard, 1993. "Putting Creativity to Work: Effects of Leader Behavior on Subordinate Creativity," Organizational Behavior and Human Decision Processes, Elsevier, vol. 55(1), pages 120-151, June.
    22. Michael Spence, 1973. "Job Market Signaling," The Quarterly Journal of Economics, Oxford University Press, vol. 87(3), pages 355-374.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. repec:eee:respol:v:47:y:2018:i:8:p:1495-1504 is not listed on IDEAS
    2. 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.
    3. repec:pal:gpprii:v:43:y:2018:i:2:d:10.1057_s41288-018-0081-8 is not listed on IDEAS
    4. repec:nup:jrmdke:v:5:y:2017:i:4:663-680 is not listed on IDEAS
    5. repec:spr:intemj:v:13:y:2017:i:3:d:10.1007_s11365-016-0432-5 is not listed on IDEAS
    6. 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.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jbrese:v:68:y:2015:i:5:p:1094-1104. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu). General contact details of provider: http://www.elsevier.com/locate/jbusres .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.