Does firm performance increase with risk-taking behavior under information technological turbulence?

Aluisius Hery Pratono

Journal of Risk Finance, 2018, vol. 19, issue 4, 361-378

Abstract: Purpose - This paper aims to contribute to the risk management studies in small and medium enterprises (SMEs) by examining the complicated relationship between risk-taking behavior and firm performance. Design/methodology/approach - The study conducted a survey of the Indonesian SME owner-managers and used partial least square structural equation modeling to examine the mediating effect of pricing capability and moderating effects of information technological turbulence. Findings - The results do not only confirm the positive impact of risk-taking behavior on firm performance but also identify that impact of risk-taking behavior on firm performance is more effective at the low information technological turbulence than at the high one. Research limitations/implications - This study relied on information from the owner-managers in SMEs, which may bias against the perspective of their employees and the business partners. Originality/value - This study advances the risk-taking behavior research in SMEs context by introducing the effect of pricing capability and information technological turbulence.

Keywords: Firm performance; Small business; Pricing capability; Risk governance; Risk-taking behaviour; Information technological turbulence (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (21)

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Persistent link: https://EconPapers.repec.org/RePEc:eme:jrfpps:jrf-10-2017-0170

DOI: 10.1108/JRF-10-2017-0170

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