The influence of risk perception on the strategic and operational planning of small firms : Singapore's automotive sector.

Abstract

This paper strives to understand the relationship between risk perception and the type of planning that small firms engage in. Over the years, literature has indicated growing importance of the influence of environmental risk perceptions and entrepreneurial orientations on the planning response of small firms. In view of the potential impact of planning response on the performance of firms, this has motivated an investigation into how risk perception affects the extent of risk taking behaviour and thus the type of planning in small firms. In addition, given that entrepreneurial orientation may have a bearing on the risk perception of owner-managers, this paper also seeks to explore this perspective as well. Further research is necessary to provide a more holistic understanding of the contemporary events under study and thus a case study method has been proposed.