Determinants of Managerial Risk Perceptions and Intentions

Abstract

This study has been undertaken as an attempt to address two questions surrounding managerial risk. From a manager's perspective, what factors make a given situation risky, and what factors actually determine whether managers will seek risk? Managerial risk perceptions and risk intentions were tested among 149 junior- to senior-level managers from a variety of industries. A risk-assessment instrument (Williams & Wong, 1999) consisting of systematically varied business scenarios was used to measure the managerial risk assessments of outcome uncertainty, possible gains/losses, personal consequences, and situational framing. Managerial risk willingness and control beliefs were measured as well. Multivariate analyses revealed that managers perceived greater risk when they believed there were higher amounts of outcome uncertainty, greater potential losses, more personal consequences, situations were framed negatively, and when risk willingness decreased. However, perceived riskiness did not influence risk intentions. Managerial likelihood to seek risk was only determined by assessments of the magnitude of likely potential gains and when situations were positively framed (e.g., favorable conditions). ABSTRACT FROM AUTHOR Copyright of Journal of Management Research (09725814) is the property of South Asia Publications and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)