Handbook of Management Scales/Risk aversion

Risk aversion (CR = 0.81)

Description

Hofstede's five cultural factors are reconceptualized as ten personal cultural orientations: independence, interdependence, power, social inequality, masculinity, gender equality, risk aversion, ambiguity intolerance, tradition, and prudence. A new 40-item scale is developed to measure these personal cultural orientations. Much effort has been invested in ensuring validity, reliability, and cross-cultural measurement equivalence of the new scale.

Definition

Risk aversion is the extent to which people are reluctant to take risk or make risky decisions.

Items

• I tend to avoid talking to strangers. (0.83)
• I prefer a routine way of life to an unpredictable one full of change. (0.79)
• I would not describe myself as a risk-taker. (0.77)
• I do not like taking too many chances to avoid making a mistake. (0.75)

Source

• Sharma (2010): Measuring Personal Cultural Orientations: Scale Development and Validation. Journal of the Academy of Marketing Science, Vol. 38, No. 6, pp. 787–806

Related Scales

• Firm risk preference
• Risk taking