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Despite the importance of managing risk taking in organizations, we know relatively little about how organizational design influences the risk-related perceptions of key organizational decision makers such as senior managers. This study examines how two basic organizational design variables—the extent to which organizations use cross-functional teams (CFTs) and the centralization of decision-making authority—interact to influence senior managers’ perceptions of the extent to which risk taking is supported within their organizations, in a new product development context. Regression results from a survey of 102 senior managers of various organizations in the United States and Norway find that extent of CFT use positively influences senior managers’ perceptions of organizational support for risk taking at low to moderate levels of decision-making authority. At high levels of senior manager authority, risk-related perceptions are not only more positive but also largely independent of the extent of CFT use
