scholarly journals Reports of Wins and Risk Taking: An Investigation of the Mediating Effect of the Illusion of Control

2010 ◽  
Vol 27 (2) ◽  
pp. 271-285 ◽  
Author(s):  
Frédéric Martinez ◽  
Valérie Le Floch ◽  
Bernard Gaffié ◽  
Gaëlle Villejoubert
Keyword(s):  
Risk Taking ◽  
Mediating Effect ◽  
Illusion Of Control

scholarly journals Sustainable Competitive Advantage through Entrepreneurship, Market-Oriented Culture, and Trust

2021 ◽  
Vol 13 (7) ◽  
pp. 3986
Author(s):  
Jun-Chul Ha ◽  
Jun-Woo Lee ◽  
Jee Young Seong
Keyword(s):  
Work Engagement ◽  
Risk Taking ◽  
Choice Theory ◽  
Business Environment ◽  
Positive Influence ◽  
Mediating Effect ◽  
Sustainable Competitive Advantage ◽  
The Relationship ◽  
Positive Effect ◽  
Significant Positive Influence

In a rapidly changing business environment, the entrepreneurship of top management is essential for the survival and sustainable development of the enterprise. Building on the view of the strategic choice theory, this study identifies the relationship between entrepreneurship, market-oriented culture, and work engagement. Data were collected from 493 employees regularly working in small and medium-sized firms in South Korea. The results of this study indicate: (1) entrepreneurship (consisting of innovation, proactiveness, and risk-taking) has a significant positive influence on market-oriented culture, (2) entrepreneurship positively affects work engagement, (3) market-oriented culture has a significant positive effect on work engagement, (4) the effects of innovation and proactiveness on work engagement are significant, controlling for market-oriented culture, showing the partial mediating effect of market-oriented culture on work engagement, and (5) CEO trust moderates the relationship between risk-taking and work engagement. Theoretical and practical implications are suggested.

scholarly journals Gambling and ageing: less illusion but more risk

2021 ◽  
pp. 1-20
Author(s):  
Maylis Fontaine ◽  
Valérie Le Floch ◽  
Céline Lemercier
Keyword(s):  
Emerging Adults ◽  
Risk Taking ◽  
Time Perspective ◽  
Illusion Of Control ◽  
Gambling Behaviour ◽  
Cognitive Mechanisms ◽  
Risky Behaviour ◽  
Younger Adults ◽  
Key Factor ◽  
Middle Aged Adults

Abstract Seniors are a population of concern due to exposure to both increasing gambling venues and powerful age-specific risk factors. There has been only limited research on this population so far, but studies conducted among younger adults suggest that the illusion of control is a key factor, leading players to develop strategies that increase their risk-taking in gambling. Time perspective (TP) is a good indicator of risky behaviours in a number of different areas, including health and the environment. In the present study, we sought to identify the age-specific cognitive mechanisms underlying gambling behaviour in normal ageing. We asked 115 emerging adults (mean age = 20.86 years), 86 young adults (mean age = 30.59), 82 middle-aged adults (mean age = 44.57) and 108 seniors (mean age = 65.19) to play an online game. We rated their illusion of control, risk-taking and TP. Analysis revealed that seniors took more risks and had less illusion of control than younger adults. The fatalistic-present TP positively influenced the illusion of control, such that perceiving the present as being determined by uncontrollable forces increased the perceived level of control. Finally, we found an influence of age on TP. These results suggest that seniors constitute a specific population in terms of gambling-related cognitions and behaviours. Including TP in risky behaviour assessments would allow the development of tailor-made preventive measures.

Financial service outreach correlates

2015 ◽  
Vol 42 (4) ◽  
pp. 404-420 ◽  
Author(s):  
Stephen Korutaro Nkundabanyanga ◽  
Julius Opiso ◽  
Waswa Balunywa ◽  
Isaac Nabeeta Nkote
Keyword(s):  
Risk Taking ◽  
Pearson Correlation ◽  
Financial Service ◽  
Mediating Effect ◽  
Mediation Effect ◽  
Microfinance Institutions ◽  
Cross Sectional ◽  
Content Type ◽  
Managerial Competence ◽  
The Relationship

Purpose – The purpose of this paper is to establish the relationship between managerial competence, managerial risk-taking behaviour and financial service outreach of microfinance institutions (MFIs). Design/methodology/approach – In this cross-sectional and correlational study, the authors surveyed 52 branches of MFIs from a population of 60 branches of 20 MFIs in eastern Uganda. Two respondents, a branch manager and a senior loan officer, were the units of enquiry for each branch. The authors put forward and tested four hypotheses relating to the significance of the relationship between perceived managerial competence, risk-taking behaviour and financial service outreach using SPSS version 20. The authors established the hypothesized relationships using Pearson correlation coefficients and obtain a mediating effect of risk-taking behaviour using partial corrections and regression analysis. Findings – The results suggest positive and significant relationships between perceived managerial competence, risk-taking behaviour and financial service outreach. However, while the direct relationship between managerial competence and financial service outreach without the mediation effect of risk-taking behaviour of managers was found to be significant, its magnitude reduces when mediation of risk-taking behaviour is allowed. Thus the entire effect does not only go through managerial competence but majorly also, through risk-taking behaviour of managers. Research limitations/implications – This study did not control for environmental factors such as laws and regulations. As such the model may have been under fitted. Nevertheless, the study has introduced a clearer understanding that outreach performance in MFIs rests with competent managers in strategic positions operating in synergy with their risk-taking behaviour. The study informs policy makers that outreach performance of the MFIs depends on the quality of the competence managers have in addition to their risk-taking propensities. Practical implications – Efforts by the stakeholders to improve financial service outreach must be matched with appropriate competences and risk-taking behaviour of managers. Originality/value – The results contribute to extant literature by investigating two explanatory variables for financial service outreach and provide initial evidence of the mediating effect of intrinsic high risk-taking behaviour of managers. Results add to the conceptual improvement in risk-taking behaviour and lend considerable support for the behavioural perspective in the study of financial service outreach of MFIs.

scholarly journals Impact of positive illusions and experience on decision to invest in own new venture

2021 ◽  
Vol 65 (3) ◽  
pp. 269-285
Author(s):  
Andrea Zelienková ◽  
Keyword(s):  
Risk Taking ◽  
Investment Decision ◽  
Illusion Of Control ◽  
Risk Attitudes ◽  
Positive Illusions ◽  
Unrealistic Optimism ◽  
Positive Events ◽  
Opportunity Evaluation ◽  
The Relationship ◽  
Process Macro

Objectives. The objective of this study is threefold: 1) to examine the effect of positive illusions on risk taking manifested in opportunity evaluation and investment decision; 2) to examine the mediating role of risk attitudes on the relationship between positive illusions and risk taking manifested in opportunity evaluation and investment decision; 3) to examine the moderating effect of experience on the relationship between positive illusions and risk taking manifested in opportunity evaluation and investment decision. Sample and setting. Research sample comprised 132 entrepreneurs aged between 19 and 63 (M = 40.6; SD = 10.8) owning small, medium, and large-sized businesses. Hypotheses. 1) Individuals exhibiting higher positive illusions (overconfidence, unrealistic optimism, illusion of control) would take higher risk manifested in opportunity evaluation and investment decision. 2) Risk attitudes will mediate the relationship between positive illusions and risk taking manifested in opportunity evaluation and investment decision. 3) Experience will moderate the relationship between positive illusions and risk taking manifested in opportunity evaluation and investment decision. Statistical analysis and results. 1) Using simple linear regression it was found that only unrealistic optimism for rare positive events and illusion of control predicted risk taking manifested in investment decision. None of positive illusions explained opportunity evaluation. 2) Using PROCESS macro for mediation analysis it was found that domain-specific risk perception, rather than general risk tolerance, is statistically significant mediator of the relationship between unrealistic optimism for rare positive events and investment decision. 3) Moderation analysis via PROCESS macro showed that only entrepreneurial experience moderates the relationship between unrealistic optimism for rare positive events and investment decision using own savings. The limitations concerning gender and domain specificity of methods are discussed in the study.

scholarly journals Family Problem-Solving and Attachment Quality: Associations With Adolescent Risk-Taking Behavior

2019 ◽  
Vol 14 (1) ◽  
pp. 70-92
Author(s):  
Angela Keyzers ◽  
Lindsey Weiler ◽  
Shelley Haddock ◽  
Jennifer Doty
Keyword(s):  
Problem Solving ◽  
Risk Taking ◽  
Mediating Effect ◽  
Open Communication ◽  
Family Problem ◽  
Test Study ◽  
Attachment Quality ◽  
Path Analyses ◽  
Adolescent Risk ◽  
Risk Taking Behavior

Close parent–child relationships are protective against the development of delinquent behavior. By creating a context for open communication and trust, parents positively influence adolescent development. The current study examined the associations among attachment quality, family problem- solving, and adolescent risk-taking behavior, as well as the mediating effect of family problem-solving on the relationship between attachment quality and adolescent risk-taking behavior. Participants included 520 adolescents (ages 10 to 19, M = 14.24) and their parents or guardians (N = 520). Two path analyses were conducted to test study hypotheses. As predicted, attachment quality was negatively associated with parent and adolescent perceptions of adolescent risk-taking behavior and positively related to family problem-solving ability, after controlling for age, gender, and race/ethnicity. Contrary to our hypothesis, family problem-solving ability did not mediate the effect of attachment quality on parent or youth perceptions of adolescent risk-taking behavior. Preventive interventions that encourage warm, supportive bonds between parents and youth may aid families in deterring youth from negative risk-taking behavior. Further research should examine other family-level factors that might influence adolescent risk-taking via direct and indirect pathways.

scholarly journals The Effect of Entrepreneurship on Start-Up Open Innovation: Innovative Behavior of University Students

2019 ◽  
Vol 5 (4) ◽  
pp. 103 ◽  
Author(s):  
Jongwan Lee ◽  
Daesu Kim ◽  
Sanghyun Sung
Keyword(s):  
University Students ◽  
Risk Taking ◽  
Open Innovation ◽  
Mediating Effect ◽  
Innovative Behavior ◽  
Mediating Role ◽  
Important Link ◽  
Start Up

This study investigates whether higher start-up intention leads to innovative behavior and whether innovative behavior is increased by the medium of entrepreneurship. This study tested the hypotheses by conducting a survey on students participating in entrepreneurship club activities in university. The results showed that start-up intention affects innovative behavior and has a significant effect on the sub-factors of entrepreneurship, such as innovation, risk taking, and proactiveness. The result of an analysis of the mediating effect of entrepreneurship on innovative behavior showed that all sub-factors performed a partially mediating role. It can therefore be said that higher start-up intention leads to more innovative behavior and that entrepreneurship serves as an important link in this relationship. These results show that increasing start-up intention may lead to innovative behavior and imply that this has educational relevance in cultivating entrepreneurship. However, this study is limited in terms of the generalizability of the results, as the subjects are university students participating in entrepreneurship club activities in Korea. Therefore, more significant outcomes can be obtained in further research by targeting a broader scope of subjects.

scholarly journals Entrepreneurial Orientation in Government-Owned Bank: Do They Improve Competitive Advantage?

2020 ◽  
Vol 11 (2) ◽  
pp. 262
Author(s):  
Maryono . ◽  
Imam Ghozali ◽  
Amie Kusumawardhani ◽  
R. Mahelan Prabantarikso ◽  
Firdaus Basbeth
Keyword(s):  
Competitive Advantage ◽  
Risk Taking ◽  
Entrepreneurial Orientation ◽  
High Performance ◽  
Dynamic Capabilities ◽  
Mediating Effect ◽  
Cross Sectional ◽  
The Government ◽  
High Performance Organization

In Indonesia, housing finance is mainly raised from banks, with the government-owned housing bank (GOHB) BTN taking the largest share of the market. In constantly growing population need for new housing unit every year and increased number of competitors requires managers of government-owned housing bank to be able to develop their dynamic capabilities and adopt a more entrepreneurial orientation (EO). However, (GOHB) are typically being linked to organization that administratively influenced by government that impeding GOHB from being high performance organization driven by EO. Moreover, the dual goals of GOHB which are business and social goals makes the managers struggle to develop and adopt entrepreneurial orientation, since they have to set priorities and trade-off between those goals. The aims of this study is to investigate the role of entrepreneurial orientation (EO) in improving competitive advantage of government-owned housing bank, and fills a gap in the literature by linking entrepreneurial orientation to the theory of dynamic capabilities. This study explored the mediating effect of multi-dimensional EO which is: innovativeness, proactiveness, and risk taking in the relationship between dynamic capabilities (DC) and competitive advantage. The method of the study is a survey using area sampling and proportionate random sampling to collect data from 115 managers in 20 branches in island of Java, during the month of May to August, 2018 (cross-sectional method). The result shows a positive relationship between dynamic capabilities to innovativeness, proactiveness and risk taking. As expecting risk taking has no mediating effect to competitive advantage.

scholarly journals Orientasi Wirausaha dan Kinerja UMKM: Efek Mediasi dari Akses Keuangan dan Keunggulan Kompetitif

2021 ◽  
Vol 3 (2) ◽  
pp. 128-140
Author(s):  
Agus Wicaksono ◽  
Suci Stiningsih
Keyword(s):  
Data Analysis ◽  
Competitive Advantage ◽  
Risk Taking ◽  
Entrepreneurial Orientation ◽  
Mediating Effect ◽  
Access To Finance ◽  
Financial Access ◽  
Analysis Technique ◽  
The Relationship ◽  
Positive Effect

This study aims to analyze the effect of Entrepreneurial Orientation (Innovation, Risk Taking, Proactive) on MSME Performance; The mediating effect of Financial Access and Competitive advantage is based on the direct and indirect subsections of Entrepreneurial Orientation. The object of this research is Culinary SMEs in Grobogan. Data were obtained from 84 samples of Culinary SMEs in Grobogan which were taken by accidental sampling. The data analysis technique used in this research is SEM-PLS. The results of this study indicate that Risk Taking and Proactive have a positive effect on MSME Performance. While innovation does not affect the performance of SMEs. Innovation and Proactive have a positive effect on Financial Access, while Risk-taking has no effect on Financial Access. Access to Finance has a positive effect on Competitive Advantage, and Competitive Advantage has a positive effect on MSME Performance). Financial Access and Competitive Advantage are able to mediate the relationship between proactiveness and MSME performance but are unable to mediate the relationship between innovation and risk-taking with the performance of culinary MSMEs in Grobogan

scholarly journals Does firm performance increase with risk-taking behavior under information technological turbulence?

2018 ◽  
Vol 19 (4) ◽  
pp. 361-378 ◽  
Author(s):  
Aluisius Hery Pratono
Keyword(s):  
Firm Performance ◽  
Risk Taking ◽  
Positive Impact ◽  
Partial Least Square ◽  
Least Square ◽  
Mediating Effect ◽  
Equation Modeling ◽  
Content Type ◽  
Technological Turbulence ◽  
Risk Taking Behavior

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.

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