Does firm performance increase with risk-taking behavior under information technological turbulence?: Empirical evidence from Indonesian SMEs. Issue 4 (20th August 2018)

• Record Type: Journal Article
• Authors: Pratono, Aluisius Hery
• Is Part Of: Journal of risk finance. Volume 19:Issue 4(2018)
• Page Start: 361
• Page End: 378
• Publication Date: 2018-08-20
• Subjects: Firm performance -- Small business -- Pricing capability -- Risk governance -- Risk-taking behaviour -- Information technological turbulence; Risk management -- Periodicals; Risk (Insurance) -- Periodicals; Risk assessment -- Periodicals; 658.155
• DOI: 10.1108/JRF-10-2017-0170
• Languages: English
• ISSNs: 1526-5943

Abstract

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.