Controlled risk taking as a driver of value creation

Keil, Thomas, Maula, Markku v. j. and Syrigos, Evangelos d. (2014) Controlled risk taking as a driver of value creation. Academy of Management Proceedings, 2014 (1), 15131. (doi:10.5465/ambpp.2014.15131abstract).

Record type: Article

Abstract

Prior literature has independently identified moderate positive relationships between firm value creation and both entrepreneurial orientation and corporate governance. However, the literature indicates a need to identify moderators of these relationships. We posit that entrepreneurial orientation and corporate governance have the greatest impact on sustainable value creation when both are present. We test the hypothesized interaction effect of entrepreneurial orientation and corporate governance on value creation in a unique longitudinal setting using well-validated operationalizations of entrepreneurial orientation and corporate governance measures for S&P 500 firms between 1999 and 2007. We find strong support for our interaction hypothesis, suggesting that sustainable value creation is maximized by controlled risk taking, not control or risk taking alone.

This record has no associated files available for download.