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Co-occurrence analyzis of key concept on risk-taking in organizational management research
Abstract
Risk-taking is a pivotal feature of entrepreneurship and business development. Poor management of business risk often leads to the loss of competitiveness with the consequence of business failure, and in contrast, it improves business sustainability when risks are managed effectively. The aimof thisresearch is to identify leading concepts and trends in research on risk-taking in organizationalmanagement researchby network analysis of keywords co-occurrence. Mapping knowledge domain was used as a useful method in bibliometrics. We analyzed 2912 records from Scopus database to risk-taking in organizational management research with the help of VOSviewer software tool. In particular, keywords co-occurrence analysis to visually explore knowledge bases, topic distribution, research fronts and research trends in the field of risk-taking research in a management context were adopted.
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The paper will be devoted to the problem of the enterprise strategy adopting the Resource-Based View. The Resource-Based View has completely dominated the strategic thinking of both theoreticians and practitioners of management in the last two decades. However, theoretical, not to say abstract nature of the RBV model has the major disadvantage, i.e. it is not subjected to operationalization. On the basis of this view there come into being a lot of currents which differently explain the contents of the strategy. One of them strongly emphasizes the relationship between the Resource-Based View and using opportunities since the latter requires the possessing of the surplus of resources which allow for using opportunities. The presentation of these relationships constitutes the main aim of the paper.
Purpose
The purpose of this paper is to examine how leaders’ behaviour and subordinates’ personality can impact subordinates’ feelings of being trusted. Feeling trusted by one’s leader is associated with increased performance, organisational citizenship behaviours and job satisfaction (Baer et al., 2015; Lester and Brower, 2003).
Design/methodology/approach
Participants read a vignette in which a leader’s behaviour was manipulated and then rated the extent to which they felt trusted. Participants in Sample 1 consisted of 726 undergraduate students with work experience, and Sample 2 consisted of 1,196 people with work experience recruited over CrowdFlower, a crowd-sourcing website.
Findings
Results from both samples indicate that a leader delegating a task increases subordinate felt trust, for Sample 1 p<0.001, d=0.75 and for Sample 2 p<0.001, d=0.90. Further, subordinate felt trust increases when the task delegated is of high importance, for Sample 1 p<0.001, d=0.42 and for Sample 2 p<0.001, d=0.58. The likelihood of the delegated task resulting in negative outcomes and subordinate propensity to trust have negligible effects on felt trust.
Originality/value
Despite the organisational benefits of felt trust, it is still unclear how to elicit subordinates’ felt trust. This study is one of the first to empirically examine leader behaviour that may lead subordinates to feel trusted in the workplace. These findings support theoretical underpinnings of the relational leadership model and the risk-based model of trust.
In the summer of 2017 Committee of Sponsoring Organizations (COSO) released new enterprise risk management (ERM) guidance. The title of that guidance is “Enterprise Risk Management: Integrating with Strategy and Performance”. The harsh reality is that few ERM frameworks in the world today integrate risk management with strategy and performance in any significant way. COSO doesn’t state this fact as bluntly and clearly as it should. This article proposes five reasons why progress has been so slow. Having looked at handicaps to realizing the new COSO vision, objective centric ERM is proposed as the way forward with the business case for change.
This paper examines the impact of corporate risk management strategies,
namely, (1) financial, (2) operational, and (3) enterprise risk management on
firm value in the context of an emerging market, Turkey. We use a unique hand-collected
sample of non-financial Turkish companies for the years 2010–2015 and
use mixed research methods to gain insights into the complex relationship between
risk management and firm value. The quantitative methodology is accompanied by
a follow up qualitative study that involves in-depth interviews with selected finance
and risk management professionals. Results surprisingly reveal that none of the
three risk management strategies increase firm value. We explore how the different
institutional circumstances surrounding firms moderate the relationship between
risk management and firm value and derive some policy implications for authorities
in emerging markets regarding improving disclosures on risk management and corporate
governance.
Risk management and risk communication affect everybody’s daily life. Local authorities have the duty
to manage public structures, to inform civilians of the risks coming from these structures, to implement
prophylaxis procedures. Military storage sites are fully included in this category. This article presents –
through a qualitative methodology based on risk analysis – how risk management and communication
in weapons and ammunition warehouses is managed in a “partially free” country, using as a case-study,
the Malhazine depot in Mozambique, which resulted in more than 100 deaths. In 2007, an extraordinary
accident related to the management of obsolete conventional weapons occurred at the Malazhine
warehouse. In this circumstance, the Mozambican Government adopted a policy of classifying the
information “highly confidential”. This policy aimed at obscuring facts and responsibilities by hiding
the causes of such a huge tragedy. This article concludes with the consideration that a high level of
confidentiality in treating issues of public interest, such as the one kept in regard to Malhazine, does
not help public authorities to effectively manage and prevent similar risks from occurring again, with
resulting negative impacts on local populations.
This study examines how female representation in local elected (mayor and legislature) and administrative (mid-level manager) positions influences municipal financial decision-making in 764 Japanese city-level governments. Findings show that female representation in local councils is positively correlated with risk-averse behaviour in financial decisions, as female representation on the legislature is negatively associated with issuing municipal bonds and with local investment in public corporations. Female representation in executive (mayor and vice-mayor) and mid-level administrative managerial positions has no apparent effects on local financial decisions. This study tests existing explanations of relationships between female managerial representation and fiscal behaviour in an Asian developed setting characterized by considerable underrepresentation of women in politics.
The objective of the analysis conducted and described in this article was to take a closer perspective of the contemporary research trends that refer to the discipline of technology management. The Author based the analysis on keywords defined by the authors of the publications that refer issues of technology management. Scopus was the database which provided data for the analysis. The Author focused on publications indexed in the selected database in 2011-2016. The resulting database keywords have been ordered and partially aggregated. Based on them, the VOSviewer tool was used to prepare a graphical presentation of frequency and co-occurrence with the rest of the analysed group. The analysis led to an indication of current research trends within the discipline of technology management.
The requirements towards packaging and articles intended to come into contact with food are systematically growing. Due to the growing consumer interest in consumption of fresh products with extended shelf life and controlled quality, manufacturers have to provide modern and safe packaging. It is a challenge for the food packaging industry and also acts as a driving force for the development of new and improved concepts of technology packaging. It is in order to meet these needs that active packaging can be applied. This article presents a new generation of packaging, which allows to maintain and even improve the quality of the packaged product, which is an essential advantage particularly in the food industry. It is to this end that the role and the application of active packaging were discussed. Among the solutions belonging to the active packaging, there are oxygen and moisture scavengers, ethylene regulators, and antimicrobial packaging. Active packaging is an excellent solution for a wide range of applications in the food industry. The most important advantage resulting from their use is reduction in loss of food products due to extension of their shelf life. Active systems are the future direction for development of food packaging and their commercial success should be expected in the coming years. It will undoubtedly result from constantly improved technologies of their production and the knowledge about mechanisms of their functioning and the effectiveness of their operation in ensuring food safety accumulated by both producers and consumers over time.
Over recent years, the effectiveness of good corporate governance practices has received considerable attention by the financial literature. In the current global finance crisis, several practitioners, academic and regulators argue that mechanisms of corporate governance have not served their purpose to safeguard equitably the interest of stakeholders, increasing the corporate risk-taking without proper management. This research contributes to the empirical literature, analyzing the impact of board characteristics and the capital structure on corporate performance and corporate risk-taking, in two different economic contexts: in an economic growth and in an economic recession. The methodology implemented takes into account the bidirectional causality and addresses endogeneity problem using a simultaneous equations system with three-stage least squares estimation method. The results show that the effectiveness of the board is sensitive to the economic period and the capital structure leads to reduce the levels of corporate risk-taking during the crisis. This research suggests that good corporate governance mechanisms should mitigate excessive corporate risk-taking and protect the interest of stakeholders in both periods: before and during the global financial crisis.
This paper investigates the effects of national culture on firm risk-taking, using a comprehensive dataset covering 50,000 firms in 400 industries in 51 countries. Risk-taking is found to be higher for domestic firms in countries with low uncertainty aversion, low tolerance for hierarchical relationships, and high individualism. Domestic firms in such countries tend to take substantially more risk in industries which are more informationally opaque (e.g. finance, mining, IT). Risk-taking by foreign firms is best explained by the cultural norms of their country of origin. These cultural norms do not proxy for legal constraints, insurance safety nets, or economic development.
Building on agency and prospect theory views, we construct, in this article, a behavioral agency model of executive risk taking. in the model we combine elements of internal corporate governance with problem framing to explain executive risk-taking behavior. The model suggests that executive risk taking varies across and within different forms of monitoring and that agents may exhibit risk-seeking as well as risk-averse behaviors. We develop specific propositions that combine monitoring with performance and the framing of strategic problems to explain executive choices of strategic risk. The resulting propositions enhance and extend the agency-based corporate governance literature on executive risk taking.
Nowadays the artificial intelligence solutions together with data science and business analytics solutions such as Business Intelligence systems, Big data and data mining play crucial role in the management of many contemporary business organizations. The multitude of its benefits include improvement of the whole management process of business organization and especially the process of decision making, allowing for automation of tasks in many areas. The aim of the paper is to present the role of artificial intelligence solutions in the process of contemporary organization’s management, its theoretical assumptions, development and current practices. The paper also presents authors’ research carried out among the group of 12 respondents. The aim of the study was to find how the benefits and drawbacks of artificial intelligence solutions are perceived by respondents. The foreign research review includes analysis of practices in such areas and branches as production management, logistics, retail trade and financial sector.
The gravity of insurance within the financial sector is constantly increasing. Reasonably, after the events of the recent financial turmoil, the domain of research that examines the factors driving the risk-taking of this industry has been signified. The purpose of the present study is to investigate the interplay between national culture and risk of insurance firms. We quantify the cultural overtones, measuring national culture considering the dimensions outlined by the Hofstede model and risk-taking using the 'Z-score'. In a sample consisting of 801 life and non-life insurance firms operating across 42 countries over the period 2007-2016, we find a strong and significant relationship among insurance firms' risk-taking and cultural characteristics, such as individualism, uncertainty avoidance and power distance. Results remain robust to a variety of firm and country-specific controls, alternative measures of risk, sample specifications and tests designed to alleviate endogeneity.
This article describes how risk has been conceptualized in the business and organizational literature through four distinct transformations: from the techno-scientific perspective to the cognitive, the social-cultural, and, finally, to the constructionist perspective. Each domain conceptualizes risk in different ways, as organizations have found it difficult to understand and mitigate using the risk management tools available. Conceptualizing risk as sensemaking becomes relevant due to the complexity of information available to the risk manager, and, coupled with time constraints, this means that risk managers increasingly rely on making sense of possible threats rather than on the accuracy of the information received. This shift presents four contributions to the current literature. First, it suggests that the role of risk management is shifting from being technical in nature to being about risk sensemaking, where the manager engages with the social and physical environment with the aim of acquiring cues that could indicate how future events will unfold. Second, a sensemaking perspective implies a shift in the use of risk management systems from being "containers" of knowledge about past risk events to lending legitimacy to the plausibility of the success of future decisions. Third, the role of the risk manager in managing individual risks changes and becomes one of managing everything using the social networks and systems available as indicators of future risk events. Finally, the risk manager and the systems he or she relies upon are regarded as a source of risk in themselves as both act as gatekeepers for organizational risk decision making.
Mapping knowledge domain (MKD) is an important application of visualization technology in Bibliometrics, which has been extensively applied in psychology, medicine, and information science. In this paper we conduct a systematic analysis of the development trend on road safety studies based on the Science Citation Index Expanded (SCIE) and Social Sciences Citation Index (SSCI) articles published between 2000 and 2018 using the MKD software tools VOSviewer and Sci2 Tool. Based on our analysis, we first present the annual numbers of articles, origin countries, main research organizations and groups as well as the source journals on road safety studies. We then report the collaborations among the main research organizations and groups using co-authorship analysis. Furthermore, we adopt the document co-citation analysis, keywords co-occurrence analysis, and burst detection analysis to visually explore the knowledge bases, topic distribution, research fronts and research trends on road safety studies. The proposed approach based on the visualized analysis of MKD can be used to establish a reference information and research basis for the application and development of methods in the domain of road safety studies. In particular, our results show that the knowledge bases (classical documents) of road safety studies in the last two decades have focused on five major areas of "Crash Frequency Data Analysis", "Driver Behavior Questionnaire", "Safety in Numbers for Walkers and Bicyclists", "Road Traffic Injury and Prevention", and "Driving Speed and Road Crashes". Among the research topics, the five dominant clusters are "Causation and Injury Severity Analysis of Road Accidents", "Epidemiologic Study and Prevention of Road Traffic Injury", "Intelligent Transportation System and Active Safety", "Young drivers' driving behavior and psychology", and "Older drivers' psychological and physiological characteristics". Finally, the burst keywords in research trends include Cycling, Intelligent Transportation Systems, and Distraction.
http://cedewu.pl/PRZEDSPRZEDAZ-Kapital-ryzyka-w-przedsiebiorstwie-z-perspektywy-zintegrowanego-zarzadzania-ryzykiem-p1761
Chair-CEO age differences have been shown to create cognitive conflicts that lead to greater chair independence in board monitoring that results in superior firm performance (Goergen et al., 2015). We test this argument in a banking setting and investigate whether chair-CEO age difference influences bank risk-taking behaviour. Using a unique sample of the largest 96 listed banks in Europe between 2010 and 2014, we find that a chair-CEO generational gap – defined as a minimum of 20 years age difference – reduces bank risks. Our results are especially prevalent for loan portfolio risks. We do not find chair-CEO differences in gender and past experience to be significant determinants of bank riskiness.
We extend the literature on how managerial traits relate to corporate choices by documenting that firms run by female CEOs have lower leverage, less volatile earnings, and a higher chance of survival than otherwise similar firms run by male CEOs. Additionally, transitions from male to female CEOs (or vice versa) are associated with economically and statistically significant reductions (increases) in corporate risk-taking. The results are robust to controlling for the endogenous matching between firms and CEOs using a variety of econometric techniques. We further document that this risk-avoidance behavior appears to lead to distortions in the capital allocation process. These results potentially have important macroeconomic implications for long-term economic growth.
This paper is a review and critique of the promising area of international entrepreneurship based on twenty years of academic research covering 150 empirical and conceptual studies. The studies are examined on the basis of six specific dimensions: key issues, theoretical perspectives, sample, research method, data analysis and dependent variable. Suggestions and directions for future research are discussed.
Enterprise risk management (ERM) has become a crucial component of contemporary corporate governance reforms, with an abundance of principles, guidelines, and standards. This paper portrays ERM as an evolving discipline and presents empirical findings on its current state of maturity, as evidenced by a survey of the academic literature and by our own field research. Academics are increasingly examining the adoption and impact of ERM, but the studies are inconsistent and inconclusive, due, we believe, to an inadequate specification of how ERM is used in practice. Based on a ten-year field project, over 250 interviews with senior risk officers, and three detailed case studies, we put forward a contingency theory of ERM, identifying potential design parameters that can explain observable variation in the “ERM mix” adopted by organizations. We also add a new contingent variable: the type of risk that a specific ERM practice addresses. We outline a “minimum necessary contingency framework” (Otley 1980) that is sufficiently nuanced, while still empirically observable, that empirical researchers may, in due course, hypothesize about “fit” between contingent variables, such as risk types and the ERM mix, as well as about outcomes such as organizational effectiveness.
This paper empirically investigates aspects of risk management in young small enterprises׳ effort to survive and grow. We use a new dataset on several thousands small businesses in their “formative age” (2–8 years old) in 10 European countries and 18 sectors. Firms across all types of sectors use internal risk mitigation strategies to manage technology risk and operational risk. Financial risk is managed by tapping formal and informal networks. Market risk appears less amenable to internal management action. Formal network participation (strategic alliances) is a strategy cutting across all kinds of risk with the exception of operational risk. Firms in knowledge-intensive sectors (high-tech manufacturing and KIBS) engage in risk management activities more extensively. Firms led by more educated entrepreneurs and/or operating in demanding volatile markets tend to network more and to use internal risk mitigation strategies more extensively.
This paper investigates the determinants of corporate risk taking. Shareholders with substantial equity ownership in a single company may advocate conservative investment policies due to greater exposure to firm risk. Using a large cross-country sample, I find a positive relationship between corporate risk taking and equity ownership of the largest shareholder. This result is entirely driven by investors holding the largest equity stakes in more than one company. Family shareholders avoid corporate risk taking as their ownership increases unlike mutual funds, banks, financial and industrial companies. Stronger legal protection of shareholder rights is associated with more risk taking, while stronger legal protection of creditor rights reduces risk taking.
This paper presents methods and software implementation for analyzing a field of research through the use of bibliometrics, i.e., information about published journal articles. Online publication search engines are queried, and their search results are extracted and analyzed, to help inform a researcher of the state of his or her field. Our methodology consists of three components: extraction of terms relevant to the research field, analysis of the growth in prevalence of these terms over time, and identification of interrelationships among these terms using a technique known as Latent Semantic Analysis. These methods are applicable to the analysis of any research field, but this paper presents results from a case study on the field of renewable energy.
Using a unique database of 190 newly privatized firms from 36 countries, we investigate the impact of shareholders’ identity on corporate risk-taking behavior. We find strong and robust evidence that state (foreign) ownership is negatively (positively) related to corporate risk-taking. Moreover, we find that the high risk-taking by the foreign owners depends on the country-level governance institutions. Our results suggest that relinquishment of government control, openness to foreign investment, and improvement of country-level governance institutions are key factors in the corporate risk-taking behavior.
This paper reviews the literature on gender differences in economic experiments. In the three main sections, we identify robust differences in risk preferences, social (other-regarding) preferences, and competitive preferences. We also speculate on the source of these differences, as well as on their implications. Our hope is that this article will serve as a resource for those seeking to understand gender differences and to use as a starting point to illuminate the debate on gender-specific outcomes in the labor and goods markets.
This paper examines the influence of corporate governance on the risk taking of Japanese firms. We show that family control and ownership concentration are associated with higher idiosyncratic risk, whereas bank control has the opposite effect. Considering the link between idiosyncratic risk and firm performance, the results provide an economic rationale for the higher (lower) performance of family-controlled firms (bank-controlled firms). The results also explain the higher performance of firms with concentrated ownership by relating their governance structures to the risk-taking strategies that generate greater competitive advantages. Finally, we show that the impact of governance structures on risk taking is stronger after controlling for endogeneity.
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