Abstract:
The research paper investigates the intricate connection between organizations' risk-taking attitude and performance. Organizations involve are SMEs i.e., small and medium enterprises. The study significantly contributes to the field of risk management. Data was gathered through managers working in different SMEs operating in Indonesia which was then further analyzed using PLS (Partial Least Square) and Structural Equation Modeling. The idea was to investigate the impact of information technology (IT) unrest which was used as a moderating variable as well as the influence of the pricing capacity of an organization as a mediating variable. Findings were not conclusive. It cannot be said with authority that organizations that have a risk-taking attitude stimulate positive performance. However, the important point to note is that when IT unrest is at the low side, risk-taking attitude can bring about positive performance. Research paper further expands the present literature on risk management by analyzing the risk-taking attitude in the SME context, also taking into consideration the impact of IT unrest and the pricing capacity of an organization.
Keywords: attitude; Small and medium enterprises (SMEs); Information technology (IT)
