Diversification decision-making and risk management by high and low-technology executive

The problem. This study compared executives of high and low technology firms to determine whether significant differences exist in diversification risk-management.;Methods. Twenty-one hypotheses were tested to determine whether significant differences exist between groups in the areas of executives' personal risk-assumptive attitudes, degree of risk considered appropriate for investment candidates, and for their firms' portfolios as a whole.;Results. Six of the research hypotheses were supported: (1) High technology executives preferred greater risk in investment candidates than the risk scale midpoint; (2) Low technology executives believed their firms' portfolios contained less risk than the risk scale midpoint; (3) High technology executives believed their firms' portfolios contained greater risk than low technology portfolios; (4) High technology firms demonstrated greater total risk propensity than low technology firms; (5) High technology executives risk-assumptive attitudes were not significantly different from their preference for risk in investment candidates; and, (6) Low technology executives risk-assumptive attitudes were not significantly different from their preference for risk in investment candidates.;The following conditions emerged related to diversification decision making: (1) No significant differences existed between executives of high and low technology groups in their personal risk-assumptive attitudes. (2) Of the two groups high technology executives preferred greater risk in their investment candidates. (3) High technology executives saw their firms' portfolios representing greater risk than was seen by low technology executives in their firms' portfolios. (4) High technology firms demonstrated greater total risk than did low technology firms. (5) Executives of both high and low technology preferred a greater level of risk in investment candidates than they reported as being in their firms' portfolios. (6) Executives of both high and low technology professed a greater level of risk in their own personal risk assumptive attitudes than they reported as being in their firms' portfolios.