< Handbook of Management Scales

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.
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