Unraveling the link between managerial risk-taking and innovation: The mediating role of a risk-taking climate
Journal of Business Research
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.
Reference
García-Granero A, Llopis Ó, Fernández-Mesa A, Alegre J (2015). “Unraveling the link between managerial risk-taking and innovation: The mediating role of a risk-taking climate.” Journal of Business Research, 68(5), 1094-1104. ISSN 0148-2963, doi: https://doi.org/10.1016/j.jbusres.2014.10.012.