Interpersonal Risk Aversion: An impediment to learning and knowledge translation for innovation
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CONTRIBUTORS:
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JOURNAL:
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Risk Management: An International Journal,
6(2),
31 -
47.
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YEAR:
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2004
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PUB TYPE:
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Journal Article
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SUBJECT(S):
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Interpersonal Risk, Precautionary Principle, Organizational Learning, Knowledge Management, Organizational Culture
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DISCIPLINE:
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Business/Management
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HTTP:
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http://www.perpetuitypress.com
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LANGUAGE:
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English
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PUB ID:
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103-406-226
(Last edited on
2004/08/19 07:44:26 GMT-6)
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SPONSOR(S):
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ABSTRACT:
This paper examines the nature of interpersonal risk, its propagation and how risk aversion can act as a barrier to learning and knowledge translation for innovation. A study of the social relations between a top management team and director-level staff in a 'high reliability' organization frames the argument that the team's risk mitigation processes concerning new proposals are a factor in producing and maintaining a risk-averse corporate culture. This condition impedes organizational learning and knowledge processes when staff adjust their presentations to reduce risk exposure associated with the new ideas, uncertainty and untested sense-making.
A related risk to the firm arises when employees find presenting innovative proposals too risky, and cease making presentations on key corporate initiatives. The 'precautionary principle' is suggested as one factor that contributes towards risk aversion in the firm's culture.
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