Ebook: Strategic Risk: A State-Defined Approach

Strategic Risk examines a fundamental issue in the field of strategic management and organizations: how to study changes in the competitive outcomes of firms. Collins and Ruefli develop the concept of ordinal risk and extend this concept and its associated measures to the more general framework of state-defined systems. The book makes the state-defined risk methodology more accessible to strategic management researchers, and to social scientists in general. The need for quantitative frameworks with which to analyze the dynamics of strategic management has been apparent for some time. The state-defined risk methodology has the advantage of being based on a common usage definition of risk, and is also based on a mathematically well-behaved function. It permits investigation of the chance of gain while yielding a measure of environmental uncertainty. Finally, the development is general and permits applications employing a variety of performance dimensions over a range of entities in a diversity of contexts. The authors demonstrate the practicability and reliability of this approach by applying the model to mutual funds, large mining and manufacturing firms, and public firms on an industry by industry basis.

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Strategic Risk examines a fundamental issue in the field of strategic management and organizations: how to study changes in the competitive outcomes of firms. Collins and Ruefli develop the concept of ordinal risk and extend this concept and its associated measures to the more general framework of state-defined systems. The book makes the state-defined risk methodology more accessible to strategic management researchers, and to social scientists in general. The need for quantitative frameworks with which to analyze the dynamics of strategic management has been apparent for some time. The state-defined risk methodology has the advantage of being based on a common usage definition of risk, and is also based on a mathematically well-behaved function. It permits investigation of the chance of gain while yielding a measure of environmental uncertainty. Finally, the development is general and permits applications employing a variety of performance dimensions over a range of entities in a diversity of contexts. The authors demonstrate the practicability and reliability of this approach by applying the model to mutual funds, large mining and manufacturing firms, and public firms on an industry by industry basis.

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Strategic Risk examines a fundamental issue in the field of strategic management and organizations: how to study changes in the competitive outcomes of firms. Collins and Ruefli develop the concept of ordinal risk and extend this concept and its associated measures to the more general framework of state-defined systems. The book makes the state-defined risk methodology more accessible to strategic management researchers, and to social scientists in general. The need for quantitative frameworks with which to analyze the dynamics of strategic management has been apparent for some time. The state-defined risk methodology has the advantage of being based on a common usage definition of risk, and is also based on a mathematically well-behaved function. It permits investigation of the chance of gain while yielding a measure of environmental uncertainty. Finally, the development is general and permits applications employing a variety of performance dimensions over a range of entities in a diversity of contexts. The authors demonstrate the practicability and reliability of this approach by applying the model to mutual funds, large mining and manufacturing firms, and public firms on an industry by industry basis.
Content:
Front Matter....Pages i-xv
Introduction....Pages 1-21
Review and Analysis of Traditional Conceptualizations and Related Measures of Risk....Pages 23-45
A Concept of State-Defined Risk....Pages 47-60
A Measure of State-Defined Risk....Pages 61-76
A Generalized Measure of State-Defined Uncertainty....Pages 77-98
Concepts and Measures of State-Defined Prospect and Hold....Pages 99-111
Recapitulation....Pages 113-119
Two Illustrative Examples....Pages 121-139
Ex Post Risk and Return Relationships....Pages 141-164
Asymmetries in State-Defined Risk and Prospect....Pages 165-181
Implications, Contributions, Limitations, and Directions for Future Research....Pages 183-191
Back Matter....Pages 193-218

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Strategic Risk examines a fundamental issue in the field of strategic management and organizations: how to study changes in the competitive outcomes of firms. Collins and Ruefli develop the concept of ordinal risk and extend this concept and its associated measures to the more general framework of state-defined systems. The book makes the state-defined risk methodology more accessible to strategic management researchers, and to social scientists in general. The need for quantitative frameworks with which to analyze the dynamics of strategic management has been apparent for some time. The state-defined risk methodology has the advantage of being based on a common usage definition of risk, and is also based on a mathematically well-behaved function. It permits investigation of the chance of gain while yielding a measure of environmental uncertainty. Finally, the development is general and permits applications employing a variety of performance dimensions over a range of entities in a diversity of contexts. The authors demonstrate the practicability and reliability of this approach by applying the model to mutual funds, large mining and manufacturing firms, and public firms on an industry by industry basis.
Content:
Front Matter....Pages i-xv
Introduction....Pages 1-21
Review and Analysis of Traditional Conceptualizations and Related Measures of Risk....Pages 23-45
A Concept of State-Defined Risk....Pages 47-60
A Measure of State-Defined Risk....Pages 61-76
A Generalized Measure of State-Defined Uncertainty....Pages 77-98
Concepts and Measures of State-Defined Prospect and Hold....Pages 99-111
Recapitulation....Pages 113-119
Two Illustrative Examples....Pages 121-139
Ex Post Risk and Return Relationships....Pages 141-164
Asymmetries in State-Defined Risk and Prospect....Pages 165-181
Implications, Contributions, Limitations, and Directions for Future Research....Pages 183-191
Back Matter....Pages 193-218
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