Environmental Factors and Mediating Role of Risk-Taking Propensity Among Successful Women Entrepreneurs in Malaysia

Abstract

This paper is to addresses the relationship underexplored, but potentially very central issue in entrepreneurship research by investigating the relationship between the risk-taking propensity and environmental factors among successful women entrepreneurs in Malaysia. Risk attitudes of entrepreneurs are well-established drivers of business success but leaving out the role of risk-taking propensity. Structural equation modelling is used to test the direct and indirect effects of environmental factors and the risk-taking propensity of the research hypotheses on a data set of 316 successful women entrepreneurs. Our results show that risk-taking propensity fully mediates the effect of environmental factors of women entrepreneurs to success. These findings lead us to believe that the perceptual framing of a situational context in the women entrepreneurs’ thought processes increased and overwhelming the environmental factors concerning either they are risk-seeking or risk-averseness and responsible risk-takers through careful identification of risk reduction strategies. Therefore, the tendency to engage in a risky decision is more psychological and implications of the research are further explored.