RISK-TAKING PROPENSITY OF DOMESTIC AND EXPATRIATE MANAGERS IN THE CROATIAN HOTEL INDUSTRY

This paper analyses the characteristics of expatriate and domestic managers
in Croatian hotel industry related to the risk-taking propensity that
is regarded as a vital component for a personal and organisational achievement.
The research was conducted in 2011 and 2012 using the questionnaire
on a sample of middle and top level domestic and expatriate managers employed
in Croatian hotel companies. Two measures of risk-taking propensity
were used: objective (Choice Dilemma Questionnaire) and subjective
(self-evaluation). The results suggest that foreign managers are greater risk
takers compared to Croatian managers. Besides country of origin, certain
characteristics such as gender, dependants and education also determine
managerial risk-taking propensity. Furthermore, correlation coeffi cients
between subjective and objective evaluations of risk-taking propensity show
that expatriates’ self-evaluation corresponds to objective risk-taking propensity
measure while Croatian managers’ self-evaluation does not correspond.
This research provides new insights into managerial risk-taking propensity
in Croatian hotel industry.