one of the main risks, and an important aspect to consider, when talking about citizen engagement is the danger of engaging only those people who are engaged already in an issue,
since this stage exposes the facilitator to the risk of a circularity of bad interpretations.
Avoidance of any classifications by the system which may expose its operation to the risk of stereotyping
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,
at least 20 million fewer people in or at risk of poverty and social exclusion Social innovation can be a tool to help achieve these targets:
Water, climate change and energy 20%of surface water is at serious risk from pollution;
One issue that social innovation seeks to address is the risk that each administration will develop its own solutions in ignorance of developments elsewhere.
including the willingness to take risks and find creative ways of using underused assets. Social enterprises are driven not solely by the need to maximise profit for shareholders and owners.
The ERDF also provides financial instruments (capital risk funds, local development funds) to support regional and local development
or provide social services and/or goods and services to persons in risk of poverty or exclusion.
thereby sharing the providers'potential risk of loss, or by providing funding to increase microcredit lending.
Once it manages to generate sufficient revenue from loans to pay staff, costs and cover risk,
which is addressed, positive external effects, experimentation and risk taking and involvement of stakeholders. 88 BEPA definition:
However, when looking at long-term risk and the development of prevention and risk reduction, the human factor in social innovation could be a strong lever.
private corporations and individuals to respond to the new social risks with new and more effective approaches and shrinking budgets.
and manage social performance was the best guarantee against the risks to see exploitation of poor people for the sake of profit and system drifts.
This can only happen through a pervasive change of mind-set, with more experimentation, controlled risk taking,
thereby sharing the providers'potential risk of loss, or by providing funding to increase microcredit lending;
developing offers that meet newly emerging risks, beyond fixed social and participation rights and entitlements;
However, there is a risk that inequalities among citizens/individuals will increase in terms of revenue, especially in Europe and the United states. The internet divide will persist within and between countries in terms of access to networks and the internet.
yy In an increasingly complex world, there is an increasing loss of confidence in the institutions and an increasing aversion to risk.
Yet, innovation may be slowed down by a culture of risk aversion. yy The interaction of the widening skills gap,
the report argues that the real challenge for European policymakers will be to break the trend of rising poverty risks,
%as well as to have at least 20 million fewer people in or at risk of poverty and social exclusion by 2020.
and risk-sharing instruments). yy Improve their visibility (mapping of social enterprises, database of labels, support for local and national authorities to build integrated strategies for social enterprises, information and exchange platform.
along with benefits, cover different types of risks that an individual can face during his life course.
and a fund offering senior loans, subordinated loans, risk-sharing loans and equity participation to microcredit providers.
and risks of this newly emerging form of funding and to explore the added value in potential EU action.
lack of information concerning the rules applicable to crowdfunding, potential risks, such as the risk of fraud or misleading advertising,
or investment risks related to financial-return crowdfunding, as well as the high cost of cross-border operation for crowdfunding platforms that host campaigns offering financial returns.
The European commission adopted a Communication Unleashing the potential of Crowdfunding in the European Union179 on 27 march 2014.
and assess the existing self-regulatory frameworks in terms of improving transparency and reducing the risks of fraud.
and the motivation of young people at risk of ESL. Emphasis will be on prevention and intervention and this will contribute to a wider debate on modernising school education to address societal and educational challenges.
or too wary of the risks? Far from it; but certainly more could be done to scale up
which it provides those giving out the prize a means of finding a solution to a problem without shouldering the burden of risk.
Indeed, with competitions, it is the participants who are expected to foot the financial risk. In the social economy,
however, there are arguments for sharing, rather than shifting, the risk. This can be achieved through a stage-gate process
mitigate the risks of flooding and provide local residents with cheap, renewable energy. Through hydro, wind and thermal power (some of which will be owned community) Green Valleys is hoping to make the 520sq mile area‘energy independent'.
and risks are reduced. They sometimes have an advantage over venture capital funding in that they can tap investors who want to make social impact their primary incentive rather than financial returns.
though it remains unclear how much they will be used primarily to spread already proven models (with reasonably reliable risk)
and risk-taking social ventures. It plays an important role in diversifying capital markets for nonprofits and social purpose organisations.
reducing risk, or by facilitating adaptation to changing markets and environments. Complex, multidimensional needs are a key site for potential collaboration.
It brings a number of benefits such as distribution of risk and financing. But it can only work
but the acquisition of new technologies and capacities, the diffusion of risk, and increasing efficiency and standards.
& Jerry's franchises to help train at-risk youth.‘‘Stanford Social Innovation Review.''Summer, 2003.8.
and Sure Start providing intensive support for children to reduce risk factors. Where these succeed they create a political constituency for public investment in early years'education as well as effective models for delivery. 234) New models of the support economy.
and controversial, infrastructure is the creation of a single database of children deemed‘at risk'in the UK.
But there are many structural features of government that inhibit risk taking and innovation. There are barriers (from cost based budgeting and departmental structures, to audit and accountability processes,
Strategic issues Innovation in the public sector always risks being a marginal add-on smallscale in terms of funds, commitment of people and political capital.
Public agencies tend to be fearful of risk. The challenge is to manage risk, not eliminate it.
Risk can be managed across a portfolio of projects that span the high return/high risk 1 148 THE OPEN BOOK OF SOCIAL INNOVATION end
as well as medium and low return agendas. A balanced view of risk is vital some innovations spread too slowly
but others spread too fast, without adequate evaluation and assessment, particularly when they win the backing of leaders.
and staged development of new approaches, helps reduce risk. 318) Formation and training to integrate innovation into personal development, training, and culture.
More generally, innovation, including a licence to take appropriate risks should be part of personal development plans. 319) Circuits of information from users to front line staff and senior managers.
and support innovation (the recent UK National Audit Office (NAO) report on innovation was a major step forward in rethinking audit as a support to innovation rather than a barrier to healthy risk-taking).
New zealand), lotteries provide a primary source of funding for community ventures. 351) Socialising risk. New forms of social insurance for long term care for example
investments combining tranches with different rates of risk/return and different sources of capital (philanthropic, public, private) such as Blueorchard (Switzerland) or Big Issue Invest in the UK. 367
Donors can handle high levels of risk and do need not the certainty of returns of the private sector.
Partly, this is because they face limited access to risk and growth capital, and to highly specialist technical knowledge,
84 Regulation & Legislation 161-162 Relational Capital 74-77 Report Empty Homes 18 Research & Mapping 17-20 Risk 54;
and housing, to avoid the risks of conflict and mutual resentment. The rising incidence of chronic diseases such as arthritis, depression, and diabetes.
Change rarely happens without some brave people willing to take risks and take a stand.
and anyone who does promote innovations risks upsetting powerful vested interests. It's all too easy to conclude that the apparently promising new idea depends too heavily on particular circumstances such as a charismatic individual
Innovation is therefore easier where the risks are contained; where there is evident failure; where users have choice
easier where the risks are contained; where there is evident failure; where users have choice; and where expectations are managed carefully.
so too does funding directed to genuinely risk-taking ideas, experiments, and trials. Yet we are not aware of a single government that has developed a fully fledged machinery for accelerating social innovation in a major sector.
One of the risks of Future Internet is that big industrial players (mainly US-based) will reinforce their dominant position by implementing platform lock in strategies,
Furthermore, by re-centralising computing, data storage and service provision according to the cloud paradigm there is a risk of closing the innovation ecosystem in favour of incumbents or dominant players,
It implies innovating with partners by sharing risk and sharing rewards. Chesbrough (2003) and Forrester (2004) define the main divergences between the principles of closed and open innovation (see Table 1). Closed innovation Open innovation Corporate ethos Not invented here We can do it
The risk of claims resulting from such infringement rests solely with you. If you wish to reuse a component of the work
so personal assets of the owners are not put at risk. Where governments make registration easy,
or simply build illegally, leading to hazardous construction that puts public safety at risk. Where compliance is simple, straightforward and inexpensive,
when assessing risk. And they permit borrowers to establish a good credit history that will allow easier access to credit.
Yes for listed companies 1 Must financial statements contain explanatory notes on significant accounting policies, trends, risks,
Governments have introduced tools to facilitate trade including single windows, risk-based inspections and electronic data interchange systems.
A major risk for the Future Internet is the realisation of the Big brother scenario, showing that big industrial players (mainly US based) will reinforce their dominant position by implementing platform lock in strategies,
and by striking strategic alliances between the largest Over-The-Top (OTT) and largest network operators, there is a risk that the innovation ecosystem will become more closed,
with the risk of subcontracting critical tasks to global sweatshop factories. Thirdly, Goteo identified that the majority of existing platforms didn't encourage collaboration,
Help streamline the design Makers can reduce risk by basing designs on open-source hardware and taking advantage of a proven design that has operated successfully in the past.
While Geiger counters make it possible to produce narratives of nuclear risk as numbers, measurement data per se cannot be a useful resource for nuclear risk knowledge production.
Volunteer Geiger counter users and social media users among others are necessary to produce specific type of nuclear risk knowledge.
To date, Safecast volunteers have mapped radiation levels of over 11 million data points, providing a comprehensive and accurate dataset that was inconceivable before the Safecast project.
As a pro-data organisation, Safecast generates nuclear risk knowledge by harnessing measurement data in multiple ways.
but also Europe, South america and the U s. Ushahidi describe itself as a‘disruptive organisation'willing‘to take risks in the pursuit of changing the traditional way that information flows.'
A major risk for the Future Internet is the realisation of the Big brother scenario, showing that big industrial players (mainly US based) will reinforce their dominant position by implementing platform lock in strategies,
and by striking strategic alliances between the largest Over-The-Top (OTT) and largest network operators, there is a risk that the innovation ecosystem will become more closed,
with the risk of subcontracting critical tasks to global sweatshop factories. Thirdly, Goteo identified that the majority of existing platforms didn't encourage collaboration,
Help streamline the design Makers can reduce risk by basing designs on open-source hardware and taking advantage of a proven design that has operated successfully in the past.
While Geiger counters make it possible to produce narratives of nuclear risk as numbers, measurement data per se cannot be a useful resource for nuclear risk knowledge production.
Volunteer Geiger counter users and social media users among others are necessary to produce specific type of nuclear risk knowledge.
To date, Safecast volunteers have mapped radiation levels of over 11 million data points, providing a comprehensive and accurate dataset that was inconceivable before the Safecast project.
As a pro-data organisation, Safecast generates nuclear risk knowledge by harnessing measurement data in multiple ways.
but also Europe, South america and the U s. Ushahidi describe itself as a‘disruptive organisation'willing‘to take risks in the pursuit of changing the traditional way that information flows.'
and (iii) examining any specific risks linked to the online sale of medicinal products. The Commission conducted a public consultation on a common logo for legallyoperating online pharmacies/retailers offering medicinal products for human use for sale at a distance.
which fully harmonises some key areas of e-commerce transactions (e g. pre-contractual information, formal requirements for contracts, the right of withdrawal, delivery, the passing of risk, etc.)
Prepare to take risks: changing a business model is a continuous process. Integrate an ongoing strategic reflection of your business model.
mitigating risks related to the use of chemicals and improving the data management of the chemicals2. www. aga. com CAR2GO:
Saves costs of raw materials, transport, storage, management etc. over relatively short time periods and with generally low-risk investments.
The World Economic Forum (WEF) Global Risks Report 2012 ranked extreme volatility of commodity prices as the fifth most important risk in terms of potentially negative impacts7.
especially for fossil fuels and metals8. 3. 2 Material and energy productivity Many companies are exposed to risks of raw material supply shortages,
World Economic Forum Global Risks Report 2012, www. weforum. org/reports/global-risks-2012-seventh-edition 8 European Environment Agency 2010:
and energy productivity can save costs and lower risk by making companies less dependent on imports.
What are the risks and opportunities of implementing a sustainable supply chain management approach? Eco-innovate!
Evaluate risks and opportunities through a risk management approach or an opportunitybased approach. Establish a common language Set sustainability targets and procurement criteria for the supply chain.
Evaluating risk, especially long-term costs and benefits may be challenging. Understanding the environmental impacts across the life-cycle is essential,
price, cost reduction, risk reduction, accessibility, convenience and/or usability? How does improved envi-Business case for eco-innovation Feedback from market research
What are associated the risks with each source of funding? What types of free or subsidised funding or business support is available from government programmes or SME business support agencies in your country?
or adopting it) and which results, throughout its life cycle, in a reduction of environmental risk,
lack of information on the environment and its risks; lack of knowledge (mostly from the management part) regarding the environment, eco-innovation, lifecycle approach,
they present the risk that they undermine the strengths of ADR and ODR, in terms of accessibility, flexibility, low costs and speed.
Business leaders in particular must ensure awareness among managers of the potential benefits and risks of new technologies;
Europe's policymakers must follow through on their pledge to foster an entrepreneurial culture by encouraging new firm creation and risk-taking,
particularly for organisations with an ingrained aversion to risk and change. However, countries such as Ireland and Sweden show what can be achieved
take risks and embark on new ventures. According to Tarek Ghouri, director of government practice for Nokia Enterprise Solutions, the technology is available today to create compelling solutions that grow productivity;
and ingrained risk aversion compared to the US is a relatively noncontroversial view, accepted by virtually all the studies we have reviewed for this report,
and a willingness to take risks. Empirical research indicates that new firms tend to be the most innovative in their markets,
even Europe's more innovative countries tend to be risk-averse. Martti af Heurlin, deputy director-general of Tekes, Finland's National Technology Agency, says that
and says Europe's risk-averse business culture does not encourage managers to innovate. The more familiar a firm is with changing structures and processes,
At the risk of adopting yet another management fad, this suggests that Europe's managers must take on board the lessons of change management
Common standards remove much of the risk associated with investing in competing technologies. Europeans fondly recall the development of the GSM standard,
risks and Part III Unleashing the enablers of growth 24 The Economist Intelligence Unit 2004 Reaping the benefits of ICT Europe's productivity challenge commercial impact of new technology.
Taking practical measures to encourage new firm creation and risk-taking. Reducing the complexity of tax compliance,
But it is up to business leaders to take advantage of this more supportive environment to encourage risk-taking and innovation in their organisations.
(and thereby helps avoid the risk of confusing the role of ICT with other variables).
it reduces investment risk; Smartgrids: The Vision Europe's electricity networks in 2020 and beyond will be:
The need to reduce uncertainty and risk to businesses making investment decisions; The progress in technology,
The perceived risk of adopting new technology will be mitigated and commercial adoption will follow when companies know it works. 31 VISION AND STRATEGY I ELECTRICITY NETWORKS OF THE FUTURE As in other ETPS,
By definition it brings risks by and these have to be managed; The risk profile varies significantly across the innovation chain and its stages;
New grid technology cannot be fully proven in the laboratory or on a simulator; Pilot operation, in a controlled situation on a real grid is a prerequisite for adoption;
and communication technology ISP internet service provider MOOC Massive open online courses (MOOCS) NBIC nanotechnology, biotechnology, information technology and cognitive science SCENIHR Scientific Committee on Emerging and Newly Identified Health Risks 4
Scientific Committee on Emerging and Newly Identified Health Risks SCENIHR 2009; Siegrist 2010. While NBIC technologies may be expected to bring along cumulatively substantial societal changes until 2030,
European Agency for Safety and Health At work, Foresight of New and Emerging Risks to Occupational safety and Health Associated with New Technologies in Green Jobs by 2020:
. and Melling, K.,Gender inequalities in the risks of poverty and social exclusion for disadvantaged groups in thirty European countries, Expert Group on Gender, Social Inclusion and Employment report, Luxembourg:
Risk and Regulatory Policy; Improving the Governance of Risk, OECD, 2010. Divided We Stand: Why Inequality Keeps Rising, Paris;
OECD Publishing, 2011. As of August 2012: http://dx. doi. org/10.1787/9789264119536-en,"An Overview of Growing Income Inequalities in OECD Countries:
Scientific Committee on Emerging and Newly Identified Health Risks (SCENIHR), Risk Assessment of Products of Nanotechnologies European commission, Directorate-general for Health and Consumers 2009.
Review of public perception studies of nanotechnology,"Human and Ecological Risk Assessment, Vol. 16, No. 4, 2010, pp. 837-846.
and C. Yaffe,"Obesity in middle age and future risk of dementia: a 27 year longitudinal population based study,"BMJ, Vol. 330, No. 7504,2005, pp. 1360-1365.
particularly their risk-taking drive and level of perseverance qualities identified as essential for an entrepreneur.
or the willingness and ability to take the risk of joining an innovative start-up as an employee. 12 Figure 10 details a conceptual model for the factors influencing
A positive attitude towards entrepreneurship and risk as an enabler for selecting an entrepreneurial career with relevance throughout the process.
and financial risks of creating or joining a new venture. Challenges for promoting entrepreneurship Attitude:
and seems to be more prevalent in Europe than in other regions. 14 Studies have found evidence that the recent economic turbulence has resulted in entrepreneurs taking less risk overall.
Impact Attitude Perceived reward/status of entrepreneurship Perceived risk Personality type Determination 1 Skills Markets/business intelligence Management skills Social skills Creativity
and essential skills and attitudes, including creativity, initiative, tenacity, teamwork, understanding of risk and a sense of responsibility. 18 Cultural/Social framework:
in Europe by encouraging young Europeans to take more risks in innovation and entrepreneurship, and encouraging governments, businesses, society and individuals to support
and reward such risk-taking through policy frameworks and access to mentors, finance and markets.
Part of it is linked to higher levels of risk aversion following the financial crisis as investors struggle with an increased regulatory burden. 39 This drop in private investment has seen the role of government agencies in venture capital raised from institutional investors increase from pre-crisis
Chairman, Europe, Microsoft Corporation Benefit for large corporates Benefit for entrepreneurs Risk to one or both partners Company shares in high-potential entrepreneurial ventures Access
and competencies of both organizations. 51 An overview of the benefits and risks of collaboration for entrepreneurs and large corporates is shown in Table 3. 26 Enhancing Europe's Competitiveness The analysis is based on the six dimensions
or without a considerable time allocation for R&d inherits major risk for entrepreneurs. 53 Scouting for partners Developing transparency on available partners Any firm may find an enormous number of potential market
not months otherwise the opportunity to accelerate processes is turned into a risk. Fridolin Stary, Senior vice-president, Research and development, Wacker Chemie Fostering Innovation-driven Entrepreneurship in Europe 31 Dimension Practice/example Developing collaboration and exploiting results Being adaptable to the needs
The inherent risk of innovation, quoted by 22%of small firms The direct cost of innovation,
Moreover, connecting actors to improve access to capital is of key importance to enable progress towards a more transparent, single European market for risk finance.
Investments in pan-European fund structures support the above-mentioned development towards a European single market for risk finance.
We need to create an entrepreneur-friendly culture that encourages young people to take risks
or contain the risk of collisions. Able to innovate cooperatively, both amid and driven by contextual changes,
They would be able to minimize the three critical types of risk in any new venture:
market risk, technology risk and team risk. What does this mean for how organizations operate?
To master risk and reap the benefits of new sources of growth in an increasingly volatile and uncertain environment,
O'neill, M. 2013), Mini-bonds come with no small risks, Investorschronicle. co. uk, based on research from Capita Registrars. 48. http://www. tekes. fi/en/tekes/.
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.
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