How risk-taking affects pioneering orientation in tourism MSEs in developing economies: a business growth perspective

Understanding how micro and small enterprises (MSEs) in developing economies implement pioneering strategies through risk-taking (RT) is crucial to foster their growth. This study examines the curvilinear relationship between risk-taking and pioneering orientation (PO), considering firm size as a moderating variable across different stages of business development. Data were collected from 302 tourism enterprises in Peru, and partial least squares structural equation modeling was employed to test a series of quadratic and moderated models. The findings reveal that risk-taking exhibits a U-shaped curvilinear effect in microenterprises, an inverted U-shape in newly established small enterprises, and a U-shape in mature small enterprises. Firm size plays a significant moderating role, with distinct patterns emerging according to the stage of organizational development. The study concludes that effective pioneering orientation requires appropriate alignment between the level of risk undertaken and a firm's growth phase. From a practical perspective, managers must accurately identify whether their firm is newly established or already consolidated and recognize that the relationship between risk-taking and pioneering orientation is not linear. Emerging microenterprises should encourage innovation while maintaining prudent risk management and closely monitoring competitive environments.