Risk-taking behavior of technology firms: The role of performance feedback in the video game industry

Situmeang, Frederik; Gemser, Gerda; Wijnberg, Nachoem M.; Leenders, Mark A.A.M.

doi:10.1016/j.technovation.2016.03.002

Cited by 18 publications

(17 citation statements)

References 71 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…This study extends the traditional view that the high-risk have the potential to offer the high return by introducing information technological turbulence as a moderating variable. The results do not only support to the previous literature that risk-taking behavior has the positive effect on firm performance (Willebrands et al, 2012;Situmeang et al, 2016) but also indicate that high information technological turbulence reduces the effectiveness of risktaking behavior on firm performance. The results of regression with moderating variable of information technology indicate that the effect of risk-taking behavior on firm performance is less effective under high information technological turbulence.…”

Section: Theoretical Implicationsupporting

confidence: 83%

“…This study extends the traditional view that the high-risk have the potential to offer the high return by introducing information technological turbulence as a moderating variable. The results do not only support to the previous literature that risk-taking behavior has the positive effect on firm performance (Willebrands et al, 2012;Situmeang et al, 2016) but also 2013, which argues that SMEs should consider the low-risk technological arbitrage opportunities in mature technologies, which extends the discussion on why firms take a risk by making a decision to adopt a highly speculative technology with a small probability of achieving significant commercial success, while other firms remain to pursue the old technology (Ross, 2014).…”

Section: Theoretical Implicationsupporting

confidence: 79%

“…SMEs with simple organization structure will be more flexible at responding to the dynamic environment but less profit due to small economies of scale (Falker and Hiebl, 2015). The long-term orientation strategy leads SMEs to become the risk takers by leveraging their management capabilities more effectively (Zellweger and Sieger, 2010;Situmeang et al, 2016).…”

Section: Hypothesis Developmentmentioning

confidence: 99%

See 2 more Smart Citations

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

Pratono

2018

JRF

View full text Add to dashboard Cite

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 ownermanagers 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.

show abstract

Section: Theoretical Implicationsupporting

confidence: 83%

“…This study extends the traditional view that the high-risk have the potential to offer the high return by introducing information technological turbulence as a moderating variable. The results do not only support to the previous literature that risk-taking behavior has the positive effect on firm performance (Willebrands et al, 2012;Situmeang et al, 2016) but also 2013, which argues that SMEs should consider the low-risk technological arbitrage opportunities in mature technologies, which extends the discussion on why firms take a risk by making a decision to adopt a highly speculative technology with a small probability of achieving significant commercial success, while other firms remain to pursue the old technology (Ross, 2014).…”

Section: Theoretical Implicationsupporting

confidence: 79%

Section: Hypothesis Developmentmentioning

confidence: 99%

See 1 more Smart Citation

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

Pratono

2018

JRF

View full text Add to dashboard Cite

show abstract

“…When GER is at a lower level, the lack of strict and forward-looking environmental standards lead to a result that enterprises are unwilling to make a great change [28]. The existing research indicated that SEI effectively reduce the consumption of material, water and energy, and constantly improve the production efficiency by improving existing technologies and products, improving product and service quality or improving existing function [11].…”

Section: Literature Review and Hypothesesmentioning

confidence: 99%

The Relationship between Green Organization Identity and Corporate Environmental Performance: The Mediating Role of Sustainability Exploration and Exploitation Innovation

Xing

Wang

Tou

2019

IJERPH

View full text Add to dashboard Cite

The link between green organizational identity (GOI) and corporate environmental performance (CEP) has been investigated, but existing studies have no consistent conclusion. A significant research gap remains regarding the mediating role of sustainability exploration innovation (SER), sustainability exploitation innovation (SEI), and the moderating role of government environmental regulation (GER). This study explored the relationship between GOI and CEP in a moderated meditation model which includes SER, SEI, and GER. Using structural equation modelling and bootstrap method based on data sets from of 380 Chinese companies, the results show that: (1) GOI promotes SER, thereby enhancing CEP; (2) GOI promotes SEI, thereby enhancing CEP; (3) GER can positively moderate the indirect effect of GOI on CEP via SER; (4) GER negatively moderate the indirect effect of GOI on CEP via SEI. These findings suggest that firms choose different innovative ways between SER and SEI to improve CEP which depends on different levels of GER in China.

show abstract

“…In the empirical studies, Kliger and Tsur examined the relationship between the returns and risk level by using the COMPUSTAT data and showed that firms with returns above their expectations will assume less risk than those firms with returns below their expectations [37]. Situmeang et al, in a study of 362 game developer firms, further found that a stable market will negatively influence new market entry while a high-degree variable market will positively influence new market entry [38]. is conclusion is also supported by a study that examined the 379 firms in India [35].…”

Section: Literature Reviewmentioning

confidence: 99%

Evolutionary Game Analysis of Firms’ Technological Strategic Choices: A Perspective of the Behavioral Biases

et al. 2021

View full text Add to dashboard Cite

To reveal the mechanisms of firms’ technological strategic choices between innovation and imitation, an evolutionary game model is proposed from the perspective of the behavioral biases. First, behavioral biases such as reference point dependence, loss aversion, and probability weighting can be defined and modeled based on the prospect theory. Second, according to the firm theory, a Cournot or Stackelberg game modeled with a technology spillover effect and intellectual property protection is applied to portray the interaction between firms. Third, an improved evolutionary game model is provided by incorporating behavioral biases into the framework of the decision-making process. Finally, the simulation analysis of some important factors, such as intellectual property protection, patent fees, innovation risks, decision-making attitudes, and consumers’ price preference on firms’ technological strategic choices, is presented. The corresponding results show that (1) innovation risk is an important factor affecting the technological strategic choices of firms, (2) increasing the intellectual property protection and the patent fee for technology transfer can effectively control the spillover effect of technology, (3) there is a partial U-shaped relationship between the consumers’ price preference and innovation, and (4) the behavioral biases such as reference point dependence, loss aversion, and probability weighting will change the perception of payoff and risk and will eventually induce firms to adopt the innovation strategy.

show abstract

Risk-taking behavior of technology firms: The role of performance feedback in the video game industry

Cited by 18 publications

References 71 publications

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

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

The Relationship between Green Organization Identity and Corporate Environmental Performance: The Mediating Role of Sustainability Exploration and Exploitation Innovation

Evolutionary Game Analysis of Firms’ Technological Strategic Choices: A Perspective of the Behavioral Biases

Contact Info

Product

Resources

About