Decisions of firm risk and the role of organizational identity
| Autor: | Alexandra Graddy-Reed |
|---|---|
| Rok vydání: | 2019 |
| Předmět: |
Economics and Econometrics
Entrepreneurship Organizational identity Risk aversion media_common.quotation_subject 05 social sciences Identity (social science) Face (sociological concept) Differential (mechanical device) General Business Management and Accounting State (polity) 0502 economics and business Survey data collection Business 050207 economics 050203 business & management Industrial organization media_common |
| Zdroj: | Small Business Economics. 57:1-21 |
| ISSN: | 1573-0913 0921-898X |
| Popis: | Due to risk aversion, nonprofit firms are believed to have a lower propensity to innovate than for-profits. In turn, social enterprises have arisen as a popular alternative to nonprofits under the expectation that their for-profit practices will lead to increased social innovation. Yet, hybrid firms face uncertainty in their organizational identity, which may detract from their propensity to innovate. Further, there is little empirical work on the actual differences of risk-taking outside of for-profit firms. This paper assesses how the organizational identity of a firm impacts their decisions of risk. Using survey data from the US state of North Carolina, logistic estimations reveal that organizational identity has differential impacts across firm structures. Specifically, for-profit firms benefit from an entrepreneurial identity, while nonprofit firms are hindered by a hybrid identity. This paper provides important developments in our understanding of the role of organizational identity on risk-taking behavior beyond traditional for-profit firms. |
| Databáze: | OpenAIRE |
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