Nevertheless, the small-and medium-sized enterprises of Germany have not been able to overcome the risks inherent in a high degree of specialisation,
Benefits could include gaining a larger share of the target market, risk diversification, or access to vital information about potential inputs or market opportunities.
professional risk evaluators for new technologies and new business; and rapid access to secondary markets. 67.
as well as government bodies, have difficulty assessing the risk-profit trade offs of innovative ventures. Uncertainties about the technical feasibility, the time period of development, the total financing needed,
commercial risk, and managerial capacity of an SME and its proposed innovative project. Technological rating organisations can be public or private bodies,
including to ensure the rapid diffusion of expertise in technological rating that would help reduce the uncertainty that limits private sector investments in high risk innovation projects (Box 1). They may also want to consider subsidising programmes that help
A combination of high extra-cluster ties and risk taking exert a positive impact on innovative performance.
Surprisingly we find that risk taking negatively moderates the influence of intra-cluster ties on innovative performance.
and risk-taking because we believe they have a unique role in leveraging innovation. Furthermore, we differentiate among a network based on internal and external cluster ties
and risk taking and examine their specific roles in generating innovative gains through ICTS and ECTS.
Risk-taking orientation reflects a firm s tolerance of uncertainty and capture a firm s willingness to involve in
while risk taking affects innovation directly, as well as by reinforcing the positive innovation effect of a firm s ties.
such ties carry major risks. The firm s partner may not be reciprocative in information exchanges,
In spite of these risks, a firm that nurtures its ties through the necessary investments in relationship building and knowledge sharing might stand to benefit more from its linkages than a firm that makes little investments in its ECTS.
While both ICTS and ECTS carry risks, the risks associated with the latter are likely to be higher due to the relatively higher differences in business practices,
norms and such like between the partners. On the other hand, the pay offs to 6 risk taking may also be higher in respect to ECTS,
given the potentially novel and non-redundant information that such ties bring about. Our paper contributes to the literature on SMES
defined as the extent to which top managers are inclined to take business-related risks and seek opportunity in anticipation of future demand (Covin & Slevin,
Risk taking is a complementary EO characteristic that reflects the commitment to high-risk investment or the willingness to invest resources into unpredictable opportunities,
Studies affirm that a successful entrepreneur makes calculated risks for potentially rewarding future benefits (Low & Abrahanson, 1997.
In short, proactiveness and risk taking are two important 9 features that shape how a firm acquire
and risk taking in relation to a firm s ICTS and ECTS. However, prior literature does emphasize how a firm s absorptive capacity (Larrañeta, Zahra,
and risk taking on a firm s network ties (ICTS and ECTS) in the specific context of an emerging-economy,
While proactiveness and risk-taking orientation both contribute to innovation and enhanced firm performance, we suggest they do so in distinct ways.
risk taking ensures that the firm makes the necessary commitments in order to derive value from its network ties.
How Does Risk Taking Moderate the Effect ICTS and ECTS on Innovative performance? Establishing network ties do not necessarily mean that a firm is fully tapping into the resources available to it through such ties.
However, such commitments carry an inherent risk. In the first place partners may renege on their promises so the firm may stand to loose the resources it has committed.
Another significant risk is associated the uncertainty with innovation (Zahra & Covin, 1995; Zahra, Nielsen, & Bogner, 1999.
As regards an acceptable level of risk, psychologists posit that this level may be chosen as a compromise between the desire for success
and the desire to avoid risk (Mandel, 2003). Too low a risk tolerance will prevent a firm from making progress (Naldi, Nordqvist, Sjoberg, & Wiklund, 2007.
As observed by Ward (1997, p. 323) without risk taking the prospects for business growth wane.
This suggests that some level of risk taking is essential for effective use of firms ICTS and ECTS.
When ICTS and ECTS are supported by an adequate degree of risk taking though investment of time, money,
and effort, the rate of innovation will increase. The interplay between risk taking on the one hand and ICTS and ECTS on the other can contribute to innovation, right from the discovery of an opportunity or the conception of an idea to its planning and implementation.
Nevertheless we suggest that the extent to which risk taking is essential can vary for ICTS and ECTS.
Within a cluster there is certain degree of mutual interdependence, implying that 11 firms need to honor their commitments
A firm's risk-taking orientation positively moderates the positive impact of its network ties (both ICTS and ECTS) on innovative performance.
A firm's risk-taking orientation has a greater moderating effect on the impact of its ECTS,
ECTS, proactiveness and risk taking affects innovation. Figure 1 Innovative performance and the interplay between ICTS, ECTS,
Proactiveness and Risk-Taking METHODS Proactiveness Intra-cluster ties Extra-cluster ties Innovation Risk taking H1a H1b H1a H1b H2b H2a
Proactiveness and Risk Taking We followed the approach of Covin and Slevin (1989) to measure proactiveness and risk taking.
Respondents were asked about their firms proactive-orientation and risk-taking behavior on a scale of 1,
strongly disagree, to 5, strongly agree. We derived multi-item variables using factor analysis, testing for their reliability and validity.
and 0. 78 for risk taking well above the minimum accepted value of 0. 70 (Field, 2013).
and risk taking with innovative performance respectively (r=0. 30, p<0. 01) and (r=0. 30, p<0. 01)).
. Risk-taking orientation 6. 16 1. 22 4 9 0. 30**0. 29**0. 39**0. 47**6. Age of owner
In model 1, we include the two EO variables, proactiveness and risk taking, along with the control variables.
*Firm Size-0. 78 0. 35***0. 21**-0. 14-0. 17+Risk taking 0. 19*0. 17+0. 19*0
-0. 16 0. 31*ECTB H1b 0. 30**0. 13 Two-way interactions ICT x Risk taking H2a-0. 41**ECT
x Risk taking H2b 0. 22*R2 0. 17 0. 22 0. 38 0. 22 0. 34 Adjusted R2 0
the interaction terms ICT x Risk taking and ECT x Risk taking (model 5). We find a positive and significant coefficient for ECT x Risk taking (ß
However in contrast to our assumption in this hypothesis we find a negative and significant coefficient for the variable ICT x Risk taking (ß=-0. 41, p<0. 01.
Figure 2 The Moderating Effect of Risk-Taking on the Relationship between ECTS and Innovative Performance 18 From figure 2 we can better understand the extent to which risk taking moderates the effect of ECTS on innovative performance.
It shows the predicted innovative performance across a range (from low to high) of ECTS for high-and low-risk taking firms.
and the dotted and solid lines respectively represent firms with high and low risk taking. Both lines have a positive slope indicating the positive effect of ECTS on innovative performance.
underscoring that risk taking substantially moderates the impact of ECTS on innovative performance. This suggests that firms that are greater risk takers benefit the most from increasing the number of their ECTS.
The EO literature identifies proactiveness and risk taking as two key EO characteristics (Lee et al.
We argued that the EO traits of risk taking and proactiveness interact differently with a firm s ICTS and ECTS.
Risk taking on the other hand positively moderates the impact of ICTS and ECTS. We empirically tested our conjectures on a sample of 120 SMES in a creative-industry manufacturing cluster in an emerging economy, Indonesia.
We found that risk taking strengthens the relationship between ECTS and innovative performance. For SMES in particular, external knowledge is a key source of innovation (Jacob & Szirmai, 2007;
) In this context, firms that take calculated risk are able to invest resources in their ECTS such that they are able to draw potentially valuable external resources.
We however found that risk taking negatively moderates the effect of ICT on innovative performance.
The Effects of Self-Construal Priming on Consumer Risk-Taking. Journal of Consumer Research, 30 (1), 30-40.
willing to take risks and naturally entrepreneurial in mindset. The region could consider ways and means of harnessing this economic potential through new forms of policy support not restricted to Spaniards or Andalusians in the strict sense.
an over-emphasis upon internationalisation may run the risk of=running before you can walk‘for many SMES.
in high and low-risk ventures, and in pretty much all sectors and sub-sectors of the economy (OECD, 2001).
and the environment and risk prevention on the other. The Spanish labour market differs somewhat from that of most European countries.
However, the risk in this restructuring is that it does not address the innovation needs of traditional sectors.
NRC-IRAP operates on a shared-risk model providing cost-shared financial assistance for research and development projects that meet both the firm and project assessment criteria.
Chances and Risks of the Merger Between Cohesion and Innovation Policy. Euro 18 (1, vol. 18, no. 1,).Laestadius, S. 1998.
in high and low-risk ventures; and in pretty much all sectors and sub-sectors of the economy (OECD, 2001, p. 35.
such as a willingness to engage in risk-taking, desire to achieve independence, and self-fulfilment of the entrepreneur.
Environment, natural surroundings, water resources and risk prevention (29.7%of total expenditure. Priority 4: Transport and energy (31%of total expenditure.
willing to take risks and naturally entrepreneurial in their mindset. The region could consider ways
but the level at which prices are pitched should be designed to minimise the risk of crowding out private sector providers.
) For many SMES, the risks involved in supplying international markets often outweigh the returns, and indeed, previous research is replete with examples of small firms who have had disastrous attempts at international expansion.
an over-emphasis upon internationalisation may run the risk of=running before you can walk‘for many SMES.
courage to assume risk, and especially about how to be independent. Still about my parents,
the risk-taking propensity by the CEO, and evidence of proactiveness (Miller and Friesen, 1982;
That is, in an uncertain environment where an atmosphere of high risk predominates, fewer opportunities, and with tremendous competitiveness, an entrepreneurial behavior is recommended specially.
and environment to the EO dimensions of innovativeness, proactiveness and risk-taking propensity. Especially the environment has long been considered one of the critical contingencies in organizations theory and strategic management.
and risk-taking propensity of the firm's CEO. Innovativeness refers to a firm's tendency to support new ideas
) Risk-taking reflects a firm's willingness to commit more resources to projects in which the expected returns are uncertain.
Hence, risk-taking is the tendency to engage in high-risk project and managerial preferences for bold versus cautions actions
and risk-taking (Covin et al.,2006). 44 Several authors, when referring to the firm's strategic posture,
In turn, EO suggests a proclivity towards the creation of new products or services, proactiveness and risk-taking propensity (Miller, 1983;
Finally, entrepreneurial firms are defined as those willing to take on high-risk projects for the chance of high return, namely, a strong risk-taking propensity by top management under highly uncertain conditions (Covin and Slevin
Risk-taking involves taking bold actions by venturing into the unknown (Rauch et al. 2009), it reflects the tendency to assume relatively high levels of riskseeking profitable opportunities in the face of uncertainty and the achievement of longterm profitability.
In this way, Robertson and Chetty (2000) say that environments characterized by high levels of uncertainty are used to encourage greater levels of innovation and risk-taking,
innovativeness, proactiveness and risk-taking propensity. We applied the exploratory factor analysis to assess dimensionality and validity.
while the second and third dimension measure the pro-activeness and the propensity for risk-taking, respectively.
917 Pro-activeness 3 items 0. 865 Risk-taking 3 items 0. 896 Source: Self-elaborated Environmental Hostility (EH) EH is measured with a three-item scale (See Appendix 3). This scale was developed by Khandwalla (1977)
proactive behavior and risk-taking propensity is more clearly in firms which operate in hostile environments.
in an uncertain environment where an atmosphere of high risk predominates, few opportunities, and with tremendous competitiveness, an entrepreneurial posture of the firm is recommended specially.
and a risk-taking propensity. Considering that networks are both cognitive structures in the minds of individuals and actual structures of relationships that link individuals (Balkundi and Kilduff, 2006),
Members of social networks can directly influence the propensity to assume greater or lesser risk activities. 72 In addition, Ripollés and Blesa (2005;
and a moderate risk-taking approach (Ripollés and Blesa, 2005 p. 243). According to these results, the following general hypothesis about the relation between firm networks and EO can be addressed.
Empirically, Miller and Friesen (1982), then Miller (1983) have used five items related to risk-taking and innovation to distinguish between entrepreneurial and conservative firms.
Finally, entrepreneurial firms are defined as those willing to take on high-risk projects for the chance of high return, namely, a strong risk-taking propensity by top management under highly uncertain conditions (Covin and Slevin, 1989;
and that assume relevant risks to growth (Covin and Slevin, 1991), in the same way Brown et al.
However, their results do not support a positive relationship between risk-taking and growth rates, confirming that the influence of EO on performance can be somewhat more insecure,
innovativeness, proactiveness and risk-taking propensity. We applied the exploratory factor analysis to assess dimensionality and validity.
while the second and third dimension measure the pro-activeness and the propensity for risk-taking, respectively.
0. 865 0. 965 0. 70 Risk-taking 3 items 0. 896 0. 984 0. 74 Source:
innovation and risk-taking are demanded. Secondly, we argue that it is important to know the effectiveness of network usage as a main resource
Likert 1-7 Risk-taking Strong tendency for high-risk projects (high return. 3 Likert 1-7 Believes that bold acts are necessary,
address longstanding challenges in value and risk management that could thwart digitalization, and replace pragmatic command and control with visionary leadership.
Are you able to mitigate the risk of product decisions with the right partners, products, terms and pricing?
This is done in order to reduce the risk of false signals and to better forecast cycles in economic activities (Nilsson, 2000.
Endogenous weighting has the risk of substituting open experts'opinions with the analyst's manipulation of weights (through the constraints.
Big data to monitor risks and identify opportunities Another big trend that is further maturing in 2014 is the application of big data analytics and visualization to the domain of online payments.
this also limits the risk of the kind of reputation damages that go hand-in-hand with online fraud.
"These firms need to combine a high level of technology competence with the ability to accept a high financial risk since new,
but also raises issues of risks and safety. Assessing safety impacts of nanostructured materials is complicated by the fact that traditional testing
Research and technological development in nanotechnology has to consider risk and safety issues seriously, and regulation needs to balance between considering health
and prioritising encironmental, health and safety (EHS) research that facilitates appropriate risk analysis and risk management in step with technological innovation.
PCAST recommended to expand outreach efforts to the wider public, particularly with respect to real and perceived benefits and risks;
to develop and implement standards critical for nanomaterial identification, characterisation and risk assessment; and to coordinate strategically-guided research on nanotechnology related EHS issues,
including a balanced assessment of risks and benefits. NNI is a policy initiative within a wider framework of policy activities to promote nanotechnology in the USA,
while technological and market risks are high and future returns not yet known. Public funding as well as a viable venture capital industry is critical to overcome financial barriers.
and information) perceived risk potentials are important activities here. Certainty about regulatory issues is also critical for nanotechnology producers to decide about investment and directions of future research.
In this situation, policy will have to compensate for this market failure in the financial market which results from a certain risk aversion and a rather short-term time horizon of the venture capital business.
Public programmes for risk assessment and risk control can reduce uncertainty about likely future impacts of nanotechnology
microelectronics, in contrast with bio-or nanotechnology, is not a radically new technology with potential health risks in need for regulation.
Also the nanoelectronics field does not seem to pose new health risks with production contained in highly controlled environments
However, they also provide stable employment for highly skilled people in the field that can take the risk to start own commercial ventures.
a range of professional advisers and services (including biotechnology associations), a culture that respects risks,
photonics, in contrast with bio-or nanotechnology, is not a radically new technology with potential health risks in need for regulation.
R&d in advanced materials is associated with high costs and risks and long amortisation times for new materials.
and costs and risks of R&d are high while returns from sales of new products may be still out of sight.
This customisation of AMT reduces at the same time the risk that manufacturing technologies are copied easily by competitors
whereas some of the European clusters, for example the Berlin-Brandenburg photonics cluster, run the risk of staying‘stuck'in knowledge development and inter-firm collaboration between local smaller firms,
or a culture that discourages openness, creativity, innovation and risk taking (soft institutions). Capabilities in the fields of technology, organisation and marketing are also necessary for innovation to be successful (capabilities.
however, less acceptance of risk and failure, and cultural attitudes tend to be more egalitarian.
and risk and failure are considered part of that European Competitiveness in KETS ZEW and TNO EN 344error!
and high information asymmetries over the prospects and risks of KET-related R&d activities. As a consequence
-Although KETS are characterised by particularly high investment in R&d and high technological and market risks,
and risk taking, can be important activities, as well as a favourable financial environment, including tax incentives for R&d and investment in new technologies.
Indeed, part of the risk that CIOS face on digital is that other business managers, or wholly new specialist roles,
and services, compared with just 50%of other CIOS. They show a much stronger appetite for risk
and those who are not are increasingly at risk. As more applications and infrastructure get moved to the cloud, IT leaders
decision-making in terms of corporate strategy Ensure compliance with 67%all regulatory requirements*75%68%Contribute to operational agility of business 66%59%Minimize possible risks 66%60
such as in seeking to minimize risks. IBM's global-local IT transformation Diego Calegari Spanish South american CIO Executive, IBM As might be expected of a leading technology brand,
It takes out risk. It takes out a lot of the variations. It gives us insight into new opportunities to cross-sell or up-sell,
Getting ahead in life often requires a willingness to take calculated risks, and this is particularly true for digital-ready CIOS. They need to be brave enough to take a bet on emerging technologies.
it's immediately a bigger risk for the business and thus gets closer scrutiny. Accordingly, digital-ready CIOS need to be willing to embrace this risk in developing a more digital business.
This involves a willingness to risk failure: understanding that not all digital projects will deliver as hoped.
As such, CIOS need to experiment widely to identify the biggest opportunities for the future. Digital CIOS need to be more innovative
but should determine not to be held back from taking risks by these issues. It is in their attitude to risk that typical CIOS often come unstuck.
Firms know that many CIOS are not typically the most flamboyant, outgoing, risk-taking types.
Finance, Risk & Compliance, Nedbank 2002 2003 General manager: Programme Integration, Nedbank 1996 2002 Assistant General manager, Nedbank 1988 1996 General manager, Small Business Development Corporation 1988 1996 General manager, Business Partners
across both functions and companies Be willing to take risks Widen your resume Tasks at a personal level Set up the right architectures for growth Get control of your data Set out the relevant standards Understand strategic alignment with the rest of the business Take a fast,
CIOS need to balance any new digital opportunities against their associated risks. While it may make a lot of sense to move email and CRM systems quickly to the cloud,
-the risk propensity; 260-the provider's capacity for technical evaluation; -the provider's insertion on the innovation market.
Within Shared Services, Ireland has the potential to provide higherorder solutions to firms based on a strong competence in management and decision making capability, risk and regulatory management,
and Strategic Flood Risk Assessment. The enterprise agencies, IDA and EI are part of the Steering/Implementation Committee for the RPGS in the South East.
risk assessment, patent writing, IP services, legal research services etc. Contract Research Outsourcing Managing clinical trial processes, often across multi-sites and multi-jurisdictions.
evolving Risks Leveraged by infrastructure and processes Data security, IP leakage Target Economies of scale Domain expertise Depth not size Challenges Attrition, wage inflation Skills availability, regulatory limitations
Domain expertise (specific to a vertical sector), risk management, global partnership management, advanced technology and computing skills, analytics etc are increasingly relevant as the sector evolves toward knowledge intensive services.
the children are exposed to a higher risk of violence and domestic conflict, drug abuse, parental neglect,
%And if the risk of falling only decreases by 6, %the chances of hospitalization in case of a fall drop by 80%.3. More information at www. sielbleu. org. 4. Results published by INSERM accessible at http://sielbleu. org/Espace presse/Etudes/pdf/Synthèse
when there is actual acceptance of risk and the commitment of resources occurs. A growing number of practitioners and researchers define innovation as any idea, practice,
successful implementation requires making significant systemic changes in a firm to promote risk. A strategy that focuses on innovation will also likely require some degree of flexibility in its organizational structure (Blumentritt and Danis 2006.
An SME that fails to continually invest in innovation places itself at greater risk of having products and services marginalized by technologically superior competitors.
Identification of possible implementation risks; Real data for costs and benefits evaluation and decision process;
SSMART-Regional balancing, bottleneck management, risk management with SG roll out Accompanying activities: Energy21 initiative: Ministry of energy working group;
as well as averting the risks of misuses that inevitably accompany any step of human evolution. I am thankful to the authors for this startling journey into a nascent field
For example, even the European Smart Cities project risks being dominated by US companies such as IBM, Google and Ciscos, partly because of the lack of alternatives.
A major risk for the Future Internet is the realisation of the‘Big brother'scenario, with big industrial players (mainly US-based) reinforcing their dominant position by implementing platform lock in strategies,
and by striking strategic alliances between the largest Over-The-Top (OTT) iand largest network operators, there is a risk that the innovation ecosystem will become more closed,
and offer more incentives for risk taking. Entrepreneurial knowledge involves much more than science and technology.
run the risk of autarky, and take a narrow view on the role of policy in the exercise.
stimulation of entrepreneurship/management of risk and uncertainty; market formation; mobilisation of resources; and legitimation.
the design of the RIS3 architecture needs to anticipate the risk of capture and make it more difficult for traditional groups to frustrate the process.
and risks associated with entrepreneurial search are shared and therefore do not become too prohibitive for the firm that is leading the search process.
Prioritisation always entails risks for those who have to select those few domains that, as a result, will get privileged access to public funding.
Such an open, participatory process, together with reliance on robust evidence based on regional assets, are the best guarantees to avoid both the risk of capture by interest groups
and the risk of lock in into traditional activities. Once the priorities are adopted it is important that the strategy is validated
Strategies that stop before this step run the risk of remaining unimplemented and/or not credible.
OECD 2011 58 Developing a RIS3 involves a degree of risk-taking, since there is always some uncertainty in the choice of priorities,
Test new or unconventional policy support approaches on a small scale before possible extension, limiting risk.
uncovering specific risk factors, such as the existence of a number of industries in need of modernisation or the dependence of the regional economy on a limited number of industries.
EU level debt instruments (guarantees/risk sharing: CIP-SMEG, RSFF, LGTT Risk Sharing Finance Facility (RSFF.
The Risk-Sharing Finance Facility (RSFF) aims to improve access to debt financing for promoters of research
and innovation investments by sharing the underlying risks between the EU and the EIB. Together, the European commission and the EIB are 113 http://ec. europa. eu/enterprise/policies/finance/cip-financial-instruments/index en. htm 114 http://www. margueritefund. eu
/99 providing up to EUR 2 billion (up to EUR 1 billion each) to support loans or guarantees supporting the priorities of the Seventh Framework Programme for RTD (FP7).
the Risk-Sharing Instrument (RSI), was launched at the end of 2011. It was operated by the EIF on behalf of the EIB
The Loan Guarantee Instrument for TEN-T projects partially covers this revenue risk and consequently improves the financial viability of such TEN-T projects. 117 Policy DG in charge:
in order to reduce their risk and increase their lending activities in favour of the sector. It amounts to EUR 8 million over the period 2010-2013.
1) a guarantee instrument to providers of micro-credit (i e. loans of up to EUR 25,000, in particular to vulnerable groups in risk of social exclusion, for the purpose of setting up small commercial operations;
The European Investment Fund provides financial intermediaries an integrated risk finance product range of SME finance initiatives,
Procurers tend to favour low cost, low risk, and off-the-shelf solutions once the (political) decision on what to buy and at
There are hardly any mechanisms to allow the pooling of risk and resources across countries and different administrations;
and by decreasing the potential innovation costs and financial risks through ERDF co-funding; The recognition of the procurement phase as strategic in public policy cycles, by associating procurement departments at an early stage in the definition of a project and of regional innovation strategies for smart growth;
There is a risk of it being hampered by insufficient knowledge, limited support of grass roots, social enterprise and social entrepreneurship activities
In this regard, it has a pivotal role in answering (together with private stakeholders and the civil society) today's major societal challenges such as demographic ageing, increased demand for healthcare services, risk
risk management and strategic planning with a view to obtaining a better access to the private capital markets,
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