Organizational risk taking: adaptation versus variable risk preferences Export

@article{citeulike:5983529, abstract = {The observed association between performance and organizational risk taking has usually been attributed to the influence of performance on risk preferences. Here I show how a simple model of adaptation, which only assumes that organizations avoid activities with poor past performance, can explain the empirically observed U-shaped association between risk and return. The model also makes novel predictions, which are shown to be consistent with the data. The findings suggest that risk taking may be a by-product of adaptation rather than a deliberate choice motivated by variable risk preferences. 10.1093/icc/dtn007}, author = {Denrell, Jerker}, citeulike-article-id = {5983529}, citeulike-linkout-0 = {http://dx.doi.org/10.1093/icc/dtn007}, citeulike-linkout-1 = {http://icc.oxfordjournals.org/content/17/3/427.abstract}, citeulike-linkout-2 = {http://icc.oxfordjournals.org/content/17/3/427.full.pdf}, day = {1}, doi = {10.1093/icc/dtn007}, journal = {Ind Corp Change}, keywords = {adaptation, organizational, preferences, risk, taking, variable}, month = {June}, number = {3}, pages = {427--466}, posted-at = {2009-10-22 04:47:18}, priority = {3}, title = {Organizational risk taking: adaptation versus variable risk preferences}, url = {http://dx.doi.org/10.1093/icc/dtn007}, volume = {17}, year = {2008} }

TY - JOUR ID - citeulike:5983529 L3 - citeulike-article-id:5983529 N2 - The observed association between performance and organizational risk taking has usually been attributed to the influence of performance on risk preferences. Here I show how a simple model of adaptation, which only assumes that organizations avoid activities with poor past performance, can explain the empirically observed U-shaped association between risk and return. The model also makes novel predictions, which are shown to be consistent with the data. The findings suggest that risk taking may be a by-product of adaptation rather than a deliberate choice motivated by variable risk preferences. 10.1093/icc/dtn007 IS - 3 JF - Ind Corp Change EP - 466 TI - Organizational risk taking: adaptation versus variable risk preferences VL - 17 SP - 427 KW - adaptation KW - organizational KW - preferences KW - risk KW - taking KW - variable AU - Denrell, Jerker PY - 2008/06/01/ UR - http://dx.doi.org/10.1093/icc/dtn007 ER -