360° of Creative Risk.
Douglas C West Henley Management College, UK
This article examines creative-risk-taking behavior by agencies and the circumstances that increase their propensity to take risks. Drawing upon agency theory, and the wider literature on risk in management decision making, two areas are investigated: (1) resolving the conflicting desires of agencies and advertisers, and (2) how advertisers control agents risk-taking. A mail survey of senior creative directors across a cross section of agencies is used and data to test the hypotheses gathered. Analyses indicate that agencies are less risk-seeking than expected. Market response and advertisers have the...