The Influence of Risk Perception and Proactive Behavior on Performance of Firms:

The Moderating Roles of Organizational Units and Types of Firms


  • Sippavit Wongsuwatt Prince of Songkla University, Thailand
  • Sid Suntrayuth National Institute of Development Administration, Thailand


Risk Perception, Proactive Behavior, Firm Performance, Types of Firm, Organizational Units


Research on the role of risk perception and proactive behavior on firm performance has gained more importance, but little is known about the types of firm and different roles of managers that might influence the outcomes of firm performance when they perceive risk and take proactive actions. This study aims to investigate the effects of firms’ perceived risk on managers and their proactive behaviors and the firm managers’ proactive actions on firm performance in terms of financial and risk concepts. Using a questionnaire survey and financial database, data from 488 respondents representing 231 firms listed in the SET (The Stock Exchange of Thailand) was collected. Results from ordinary least squares regression found a significant associations among risk perception, proactive behavior, and firm performance. These findings suggest that perceiving risk tends to increase proactive behavior in managers who work at below average target firms and work in line functional unit and that proactive behavior of firm managers who work in firms with an established risk management department and work in line functional units tends to enhance firm performance and mitigate risk. In terms of organizational implications, our findings would suggest that establishing risk management systems will enhance firm performance in terms of financial and risk concepts.