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Understanding the risk perception of strategic opportunities: a tripartite model
Author(s) -
Acedo Francisco J.,
Florin Juan
Publication year - 2007
Publication title -
strategic change
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.527
H-Index - 16
eISSN - 1099-1697
pISSN - 1086-1718
DOI - 10.1002/jsc.787
Subject(s) - perception , risk perception , entrepreneurship , sample (material) , disposition , cognition , marketing , psychology , style (visual arts) , business , risk model , economics , social psychology , actuarial science , finance , geography , chemistry , chromatography , neuroscience , archaeology
This paper develops and tests a model of risk perception that draws from entrepreneurship and cognitive theories. We propose that the perception of risk associated with strategic opportunities is influenced by the individual's past experience related to the opportunity, their cognitive style for gathering and analysing relevant information and their tolerance for ambiguous situations and outcomes. Furthermore, we posit that the individual's proactive disposition is central to these relationships. The model is tested on a sample of top managers of small and medium size firms regarding their risk perception associated with international expansion. Considerable support is found for the overall model.Copyright © 2007 John Wiley & Sons, Ltd.