Handbook of Management Scales/Firm risk preference

Firm risk preference (CR = 0.70) Description The scale was based on Venkatraman (1989). Definition In the article, firm risk preference refers to a firm's propensity for risk taking. Items Items were rated on a scale ranging from 1, "strongly disagree", to 7, "strongly agree". We seem to adopt a rather conservative view when making major decisions. We have a tendency to support projects where the expected returns are certain. Operations have generally followed the "tried and true" paths. Our operations can be generally characterized as high risk. (R) Source Steensma & Corley (2001): Organizational Context as a Moderator of Theories on Firm Boundaries for Technology Sourcing. Academy of Management Journal, Vol. 44, No. 2, pp. 271-291. Related Scales Risk aversion Risk taking