PR - THE EFFECT OF ENTREPRENURIAL ORIENTATION ON CROP PORTFOLIO CHOICE: RESULTS FROM A STUDENT SIMULATION

Abstract:
The paper explores how crop choices within a farm simulation game are influenced by the entrepreneurial orientation (EO) of participants. To do so, we employs a survey on demographics and management style to estimate the riskiness of crop choices as well as the entrepreneurial posture of participants. The purpose is to verify if the level of EO, constructed from the dimensions identified in the literature, helps predict the student’s inclination towards crop diversification as it relates to portfolio risk. The results reveal that participants with a high level of EO selected higher-risk crop portfolios, a result consistent with other empirical studies on entrepreneurship. The study is a step toward developing an analytical basis for future empirical study in farming risk mitigation.
Keywords: Entrepreneurial Orientation, Portfolio Choice, Managing Risk