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.
Original language | English (US) |
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Pages (from-to) | 621-660 |
Number of pages | 40 |
Journal | Review of Managerial Science |
Volume | 12 |
Issue number | 3 |
DOIs | |
State | Published - Jul 1 2018 |
Keywords
- Firm risk
- Meta-analysis
- Risk-taking
ASJC Scopus subject areas
- General Business, Management and Accounting