Taking risks in the face of uncertainty

Stephen Roper, Efstathios Tapinos

Research output: Contribution to journalArticle

24 Citations (Scopus)
3 Downloads (Pure)

Abstract

The relationship between uncertainty and firms’ risk-taking behaviour has been a focus of investigation since early discussion of the nature of enterprise activity. Here, we focus on how firms’ perceptions of environmental uncertainty and their perceptions of the risks involved impact on their willingness to undertake green innovation. Analysis is based on a cross-sectional survey of UK food companies undertaken in 2008. The results reinforce the relationship between perceived environmental uncertainty and perceived innovation risk and emphasise the importance of macro-uncertainty in shaping firms’ willingness to undertake green innovation. The perceived (market-related) riskiness of innovation also positively influences the probability of innovating, suggesting either a proactive approach to stimulating market disruption or an opportunistic approach to innovation leadership.
Original languageEnglish
Pages (from-to)357-363
Number of pages7
JournalTechnological Forecasting and Social Change
Volume112
Early online date26 Aug 2016
DOIs
Publication statusPublished - 30 Nov 2016

Keywords

  • perceived environmental uncertainty
  • innovation risk
  • green innovation
  • SMEs

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