Abstract

The majority of research assumes that taking risks provides an advantage to firms. However more recently, scholars also acknowledged that risk-taking might be a ‘double-edged sword’, meaning that high levels of risk not only positively affect performance but also cause a higher likelihood of failure. Because we assume that deeper insights into the risk-taking-performance relationship can be gained by investigating intertwined mechanisms among internal and external characteristics of firms, we compare two methodological approaches.

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