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1 – 10 of over 1000Wei Liu, Dimitri van der Linden and Arnold B. Bakker
Using positive psychology theories, the authors build a model to test whether episodic fluctuations in strengths use coincide with changes in flow experiences and further predict…
Abstract
Purpose
Using positive psychology theories, the authors build a model to test whether episodic fluctuations in strengths use coincide with changes in flow experiences and further predict risk-taking behavior and attentional performance.
Design/methodology/approach
A field study covering five working days was conducted among 164 Chinese employees; twice a day, they were asked to complete questionnaires regarding their strengths use and flow experiences during the previous hour (N = 938 observations). Immediately afterward, their risk-taking behaviors and attentional performance were tested using computerized tasks.
Findings
Multilevel analyses showed that when employees used their strengths more often in the previous hour, they also reported an increase in flow. Episodic fluctuations in flow were positively associated with risk taking and negatively related to attentional performance.
Practical implications
Employees should be encouraged to use their strengths more at work, as this might increase their flow experiences. At the same time, they should pay attention to the downsides of flow (i.e. less attention after flow) at an episodic level.
Originality/value
The authors add to previous studies by using a more objective approach, namely employing computerized tasks on risk-taking behavior and attention to capture the behavioral outcomes of work-related flow.
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This study aims to examine that personality traits are associated with the investor’s ability to exhibit disposition effect, herding behavior and overconfidence. It also explores…
Abstract
Purpose
This study aims to examine that personality traits are associated with the investor’s ability to exhibit disposition effect, herding behavior and overconfidence. It also explores how risk-attitude can modify investor behavior by moderating the association between personality traits, disposition effect, herding and overconfidence.
Design/methodology/approach
Data were collected from 396 respondents by using personally administrated survey. Confirmatory factor analysis (CFA) was used to confirm the validity and reliability of data. Regression analysis was used to test the proposed hypotheses.
Findings
The results supported the proposed hypotheses and showed that extravert investors were more likely to exhibit disposition effect, herding and overconfidence. The conscientiousness trait was associated with disposition effect and overconfidence, while neuroticism was associated with herding behavior. The results confirmed the moderating effect of risk aversion on the association between personality traits, disposition effect, herding and overconfidence.
Originality/value
This study demonstrates how risk aversion modes the strength of association between psychological characteristics (represented by personality traits) and cognitive biases (disposition effect, herding and overconfidence). The results support the “auction” interpretation of investors' behavior by suggesting that personality traits are associated with investment decision-making and that investors are marginal price setters.
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This empirical study examined links between entrepreneurial personality traits and perception of new venture opportunity in a sample of 207 respondents. Four entrepreneurial…
Abstract
This empirical study examined links between entrepreneurial personality traits and perception of new venture opportunity in a sample of 207 respondents. Four entrepreneurial personality traits were included to predict respondents℉ perception of new venture opportunity. They are (1) achievement motivation, (2) locus of control, (3) risk propensity, and (4) proactivity.The results of multiple regression analysis show that three of the four entrepreneurial personality traits‐locus of control, risk propensity, and proactivity‐related significantly to perception of new venture opportunity in expected directions. Among the three personality traits, proactivity was found to have the strongest influence over entrepreneurial perception. No significant relationship was found between achievement motivation and perception of new venture opportunity. Among six control variables, only work experience was found to influence perception of new venture opportunity. This study explored links between entrepreneurial personalities and cognition and its results suggest that a combination of trait and cognition approaches contributes to a better understanding of entrepreneurial decision-making process. Both theoretical and practical implications were discussed.
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Managers must make numerous strategic decisions in order to initiate and implement a business model innovation (BMI). This paper examines how managers perceive the management team…
Abstract
Purpose
Managers must make numerous strategic decisions in order to initiate and implement a business model innovation (BMI). This paper examines how managers perceive the management team interacts when making BMI decisions. The paper also investigates how group biases and board members’ risk willingness affect this process.
Design/methodology/approach
Empirical data were collected through 26 in-depth interviews with German managing directors from 13 companies in four industries (mobility, manufacturing, healthcare and energy) to explore three research questions: (1) What group effects are prevalent in BMI group decision-making? (2) What are the key characteristics of BMI group decisions? And (3) what are the potential relationships between BMI group decision-making and managers' risk willingness? A thematic analysis based on Gioia's guidelines was conducted to identify themes in the comprehensive dataset.
Findings
First, the results show four typical group biases in BMI group decisions: Groupthink, social influence, hidden profile and group polarization. Findings show that the hidden profile paradigm and groupthink theory are essential in the context of BMI decisions. Second, we developed a BMI decision matrix, including the following key characteristics of BMI group decision-making managerial cohesion, conflict readiness and information- and emotion-based decision behavior. Third, in contrast to previous literature, we found that individual risk aversion can improve the quality of BMI decisions.
Practical implications
This paper provides managers with an opportunity to become aware of group biases that may impede their strategic BMI decisions. Specifically, it points out that managers should consider the key cognitive constraints due to their interactions when making BMI decisions. This work also highlights the importance of risk-averse decision-makers on boards.
Originality/value
This qualitative study contributes to the literature on decision-making by revealing key cognitive group biases in strategic decision-making. This study also enriches the behavioral science research stream of the BMI literature by attributing a critical influence on the quality of BMI decisions to managers' group interactions. In addition, this article provides new perspectives on managers' risk aversion in strategic decision-making.
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Zeshan Ahmad, Shahbaz Sharif, Muhammad Ahmad Alrashid and Muhammad Nadeem
The purpose of this study is to investigate how the congruence between predecessor and successor personality traits (PTs) with the values of their small family business (SFB…
Abstract
Purpose
The purpose of this study is to investigate how the congruence between predecessor and successor personality traits (PTs) with the values of their small family business (SFB) contributes to a successful succession transition across generations.
Design/methodology/approach
The conceptual model method was employed in this investigation, which describes an entity and identifies issues that should be considered in a study (MacInnis, 2011). It involves a form of theorizing that seeks to create a nomological network around the focal concept, to examine and detail the causal linkages and mechanisms at play (Delbridge and Fiss, 2013).
Findings
Drawing on the trait activation theory (TAT), this study conceptualizes that the congruence of the successor's PTs with those of the predecessor, as well as the values, transitions and nature of the assigned task, activates the successor's PTs and motivates him to work diligently for a successful succession transition while preserving the business's core values established by the founder.
Research limitations/implications
This study is an eye-opener for strategists and SFB predecessors to ponder the successor's PTs disparities across generations. Additionally, it urges them to consider the congruence of SFB's values and nature of operations with the successor's PTs for successful succession transition. Thus, such awareness may contribute to stabilizing the SFB's survival rate.
Originality/value
This study contributed to the existing literature by answering how predecessor’s and successor's PTs congruence and SFB's values and nature of operations congruence with their PTs may contribute to successful succession transition across generations. This study contributed to the TAT by thematically explaining the organizational cues to bridge a relationship between entrepreneurial personality traits (EPT) and succession success of SFBs.
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Thao Phuong Tran and Anh-Tuan Le
This paper examines how the degree of happiness affects corporate risk-taking and the moderating influence of family ownership of firms on this relationship.
Abstract
Purpose
This paper examines how the degree of happiness affects corporate risk-taking and the moderating influence of family ownership of firms on this relationship.
Design/methodology/approach
The authors use an international sample of 17,654 firm-year observations from 24 countries around the world from 2008 to 2016.
Findings
Using the happiness index from the World Happiness Report developed by the United Nations Sustainable Development Solutions Network, the authors show that a country's overall happiness is negatively correlated with risk-taking behavior by firms. The findings are robust to an alternative measure of risk-taking by firms. Further analyses document that the negative influence of happiness on firm risk-taking is more pronounced for family-owned firms.
Practical implications
The paper is consistent with the notion that happier people are likely to be more risk-averse in making financial decisions, which, in turn, reduces corporate risk-taking.
Originality/value
This study contributes to the broad literature on the determinants of corporate risk-taking and the growing literature on the role of sentiment on investment decisions. The authors contribute to the current debate about family-owned firms by demonstrating that the presence of family trust strengthens the negative influence of happiness on corporate risk-taking, a topic that has been unexplored in previous studies.
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Nicholas Addai Boamah, Augustine Boakye-Dankwa and Emmanuel Opoku
The study examines the dynamic association between competition, risk-taking, performance and income diversification of frontier and emerging economy (FEE) banks. It additionally…
Abstract
Purpose
The study examines the dynamic association between competition, risk-taking, performance and income diversification of frontier and emerging economy (FEE) banks. It additionally, explores the effect of banking sector depth and economic performance on the level of competition, performance and risk-taking behavior of banks in these economies.
Design/methodology/approach
The paper adopts a panel vector auto-regressive technique and collects data across ninety (90) FEEs.
Findings
The paper finds that competition increases with improvement in the depth of the banking sector, a surge in risk-taking behavior and the adoption of focused strategy by banks. Similarly, income diversification activities are driven by competition, banking sector depth, the state of the economy and bank performance. Additionally, risk-taking behavior, banking sector depth and the state of the economy are relevant in describing bank performance. Also, risk-taking behavior is influenced by bank performance, banking sector depth and economic growth.
Originality/value
The evidence indicates that although competition improves banking sector health, excessive competition and non-competitive banking environment constrain banks’ performance and stability.
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Magnus Jansson, Magnus Roos and Tommy Gärling
This paper aims to investigate whether loan officers' risk taking in credit decisions are associated with their personal financial risk preference and personality traits or solely…
Abstract
Purpose
This paper aims to investigate whether loan officers' risk taking in credit decisions are associated with their personal financial risk preference and personality traits or solely with bank-contextual and loan-relevant factors.
Design/methodology/approach
An online survey administered in six large Swedish banks to 163 loan officers responsible for assessing credit risk and approval of loan applications. The loan officers rated their likelihood of approving fictitious loan applications from business companies.
Findings
The loan officers' credit risk taking is associated with bank-contextual factors, directly with perceived organizational credit risk norms and indirectly with self-confidence in assessing credit risks through attitude to credit risk taking. A direct association is also found with personal financial risk preference but not with personality traits.
Research limitations/implications
Increased awareness of that loan officers' personal financial risk preference is associated with their credit risk taking in loan decisions but that the banks' risk policy has a stronger association. Banks' managements and boards should therefore assure that their credit risk policy is implemented, followed and being aligned with their performance incentives.
Practical implications
Increased awareness of that loan officers' credit risk taking is associated with personal financial risk preference but more strongly with the banks' risk policy that motivate banks' managements and boards to assure that their credit risk policy is implemented, followed and being aligned with their performance incentives.
Originality/value
The first study which directly compare the associations of loan officers' risk taking in credit approvals with personal risk preference and personality traits versus bank-contextual factors and loan-relevant information.
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Lianne Jones, Rachelle Rogers, Doug Rogers, Austin McClinton and Lisa Painter
The ever-changing educational landscape, exacerbated by recent events surrounding COVID, political and cultural unrest, necessitates educators who are antifragile, able to…
Abstract
Purpose
The ever-changing educational landscape, exacerbated by recent events surrounding COVID, political and cultural unrest, necessitates educators who are antifragile, able to withstand pressures and thrive amidst uncertainty. To this end, the pilot study reported here aims to examine mathematics educators’ initial reflections on what it means to be a risk-taker in the classroom, what prevents them from engaging in instructional risks and what would support their instructional risk-taking.
Design/methodology/approach
The pilot study utilized interviews with participants, including four pre-service teachers who were enrolled at the university and seven in-service teachers who were employed on active PDS campuses within the school district.
Findings
Preliminary findings suggest teacher beliefs concerning risk-taking, the barriers to engaging in such behaviors and the support needed to be able to take instructional risks. Results highlight the role of school–university partnerships in cultivating a culture of risk-taking through active collaboration and dialogue.
Research limitations/implications
These findings have important implications for universities and PDS partners engaged in preparing teachers for an educational field that is unpredictable and continually changing. Additional research should be completed in varying PDS settings.
Practical implications
Findings highlight the role of school–university partnerships in cultivating a culture of risk-taking through active collaboration and dialogue.
Originality/value
Educators are currently faced with an unprecedented instructional landscape. Antifragile, risk-taking teachers are needed who are adaptable and innovative, thus better equipped to enter the challenging and uncertain realities of education.
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