Family business risk-taking and financial performance: Is it easier said than done?

Ana C. González L., Yeny E. Rodríguez, Juan M. Gómez, Helmuth Chávez and Jaly Chea

Journal of Family Business Strategy, 2021, vol. 12, issue 4

Abstract: In this study we reconcile the contradictory evidence found in the risk taking-performance relationship. We study the distinction between risk taking orientation and entrepreneurial risk taking and their effects on performance and find a non-linear, U-shaped relationship when it comes to risk taking orientation. Even though we did not find evidence that pursuing risky activities has an inverted u-shaped form, our results confirm that pursuing risky activities in family firms has similar effects than in non-family firms. We also study the role of context on family business risk attitudes and actions, and performance and find moderating effects at the industry, market and country levels on the risk taking orientation-performance relationship and partially, on the entrepreneurial risk taking-performance relationship.

Keywords: Entrepreneurial risk taking; Risk taking orientation; Financial performance; Contextual factors; Family firm (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1877858521000164
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:fambus:v:12:y:2021:i:4:s1877858521000164

Ordering information: This journal article can be ordered from
http://www.elsevier.com/wps/find/journaldescription.cws_home/719791/bibliographic
http://www.elsevier. ... 719791/bibliographic

DOI: 10.1016/j.jfbs.2021.100435

Access Statistics for this article

Journal of Family Business Strategy is currently edited by J.H. Astrachan

More articles in Journal of Family Business Strategy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().