Entrepreneurial Risk and Strategic Decision Making: It’s a Matter of Perspective

Risk taking has long been a central theme of the entrepreneurship literature. However, research on the risk propensity of entrepreneurs has met with virtually no empirical support even though entrepreneurs consistently engage in risky events. This article attempts to resolve this paradox by examining entrepreneurial risk through the lens of cognitive psychology and decision making. The author proposes that entrepreneurial risk may be explained by recognizing that entrepreneurs use biases and heuristics more, which is likely to lead them to perceive less risk in a given decision situation. The data indicate that entrepreneurs do indeed use representativeness more in their decision making and are more overconfident than managers in large organizations. These findings provide a new perspective for understanding how entrepreneurs deal with the inordinate amount of risk associated with starting new ventures.Yeshttps://us.sagepub.com/en-us/nam/manuscript-submission-guideline

Innovation Ambidexterity, Resource Configuration and Firm Growth: Is Smallness a Liability or an Asset?

This study examines when small- and medium-sized enterprises (SMEs) benefit from innovation ambidexterity for their growth. We argue that innovation ambidexterity in SMEs is sensitive to resource configuration, necessitating a careful fit assessment among firms??? internal resources (firm size), external resources (customer concentration) and the forms of innovation ambidexterity. Patent and utility model data from 912 firm-years for the 2000???2017 period in the Korean electronic parts industry were analysed using a feasible generalised least squares (FGLS) model. Consistent with our prediction, we establish that firm size is negatively related to the growth effect of balanced innovation ambidexterity (BIA), but positively to that of combined innovation ambidexterity (CIA), and that customer concentration is positively related to the growth effect of CIA. The three-way interaction patterns further demonstrate that smaller firms with high customer concentration achieve the best growth when pursuing BIA, whereas the same configuration can lead to the worst growth if they adopt CIA

Generic strategies and firm performance in SMEs: a longitudinal study of Austrian SMEs

Small and medium-sized enterprises, Firm performance, Generic strategies, Combination strategy, Longitudinal study, Strategy persistence, C12, L21, L25, L26, M10,