Journal of Management Research
Volume 8, Number 2 (August 2008)
ISSN: 0972-5814 Online ISSN: 0974-455X
Determinants of Managerial Risk Perceptions and Intentions
Steve Williams, Mohamed Zainuba and Robet Jackson
| 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).
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