Abstract :
This paper argues that creative behavior requires an employee
to be willing to engage risk. Aside from the discussion of risk
propensity as an individual difference, a new situational variable
will be developed and tested: willingness to take risks
(WTR). WTR captures the employee’s willingness to engage
risks in their work and is positioned as an important influence
on creative behavior. The results of a field study indicate that
WTR is a significant predictor of employee creativity and, in
addition, mediates the relationship between encouragement
and creativity. The results are discussed in light of the current
literature on employee creativity.