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

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  • 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.

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  • 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
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