University of Cincinnati Lindner College of Business

All risk-taking is not the same: Examining the competing effects of risk-taking on firm risk and firm performance with meta-analysis
Amanda Christensen

Status: Published
Year: 2018
Publication Name: Review of Managerial Science
Volume: 12, Page Number(s): 621-660


Although researchers have vigorously studied organizational risk-taking for over 35 years, relatively little emphasis has been placed on theoretically differentiating the unique relationships between the many risk-taking choices organizations make and firm risk or firm performance. In this research, we propose a new framework that builds from March's exploration-exploitation model to argue that different risk-taking choices can have substantially different influences on firm outcomes. We use meta-analysis to examine the unique and at times competing effects of four of the most commonly studied risk-taking choices on firm risk and firm performance. Results from a meta-analysis of 257 unique studies (N = 499,808) demonstrate support for our proposed framework and cast significant doubt on the idea that commonly studied firm risk-taking choices theoretically aggregate into one overarching risk-taking construct.

Read More View on Google Scholar

UC Authors

Amanda Christensen
Amanda Christensen