Enjoying or refraining from risk? The impact of implicit need for achievement and risk perception on SME internationalization

Abstract

Purpose This study aims to explore how an entrepreneur's implicit need for achievement and risk reception contribute to internationalization performance. Design/methodology/approach This study involves 176 Indonesian entrepreneurs. The authors use the Operant Motive Test to assess the entrepreneur's implicit needs and apply hierarchical Tobit regression to assess the interplay between implicit need for achievement, risk perception and internationalization. Findings The authors show that an entrepreneur's basic needs and risk perception play an essential role in SME internationalization. More specifically, the authors reveal a positive association between the entrepreneur's need for achievement and small and medium enterprises (SME) internationalization. They also show a U-shaped relationship for the moderation effect of risk perception on this relationship. That is, for a high need for achievement-motivated entrepreneur, the level of internationalization is at the highest when risk perception is either very low or very high. Originality/value In this study, the authors argue that analyses at the entrepreneur's individual level are indispensable to better understand firm internationalization. The authors argue that the role of psycho-cognitive characteristics of individuals (such as motivational dispositions) received too little attention, compared to factors at the firm or environmental level. This study examines such personality aspects and finds that implicit need for achievement and risk perception impact SME internationalization.

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