Emerging Market Firms' Dynamic Capabilities: Case Studies of Traditional Industries in China

Bhutto³

2020

SIJMB

Despite the pivotal role of risk management very limited research is carry out on the issue of firm’s risk management capability and value creation. This study aims to analyze the impact of firms risk management capabilities on firm performance and cost. Using panel data technique a sample of 301 non financial firms was analyzed for the time period on five years starting from 2011 to 2015. We assert that effective risk capabilities have positive impact on all stakeholders. The effective risk management capabilities guarantee more resilience to exogenous and endogenous risks. Our findings will have a significant impact on existing literature, by extending the existing knowledge of firm’s risk management capabilities into the domain of diverse stakeholders and resources adjustment.

Section: H3mentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Reassessing the Impact of Risk Management Capabilities on Firm Value: A Stakeholders Perspective

Bhutto³

2020

SIJMB

“…The above empirical result shows that CRM allows the firm to identify, monitor and most importantly shield the firm’s operations from endogenous and exogenous risks and thereby evade its negative consequences and challenges (Aisyah et al , 2019; Song et al , 2019). The empirical finding also substantiates that the negative effects of firm-specific and systematic risk on business prospects and most importantly on the perceptions of a firm’s key stakeholders can be effectively taken away with the introduction of a firm CRM framework (Khanna et al , 2005; Miller and Chen, 2003).…”

Section: Resultsmentioning

confidence: 88%

Does corporate risk management lead to risk mitigation and firm performance? Evidence from Asian emerging markets

Rehman

et al. 2023

MRR

Purpose This study aims to verify the significance of Andersen (2008) corporate risk management (CRM) framework in Asian emerging markets (AEMs) to control firm risk and improve firm performance. Design/methodology/approach The cross-sectional analyses are performed on a sample of 4,609 firms across nine Asian emerging countries using 2SLS estimation technique. Findings The empirical findings show that the adoption of CRM not only enhances firm performance by increasing the firm ability to capitalize on the market opportunity but also plays a significant role in reducing firm risk. The findings of this study assert that by institutionalizing risk management practices into an integrated CRM framework, the firm can reap multiple benefits by maintaining better contractual agreements and strategic partnerships with key stakeholders. Originality/value The study shifts the focus of CRM away from Western countries toward AEMs, which has been afflicted by high risks and uncertainties. The effectiveness of CRM against firm risk is established by dividing firm risk into firm-specific risk and systematic risk. Furthermore, this study also establishes that CRM not only leads to high returns but also reduces firm operational and production costs. Overall, the study provides a compelling argument to implement CRM for improving organizational performance and managing risks in a strategic and integrated manner. The findings are also relevant to risk management practitioners, as well as to academicians interested in the broader fields of corporate finance and strategy.

“…It can help enterprises stay away from risks, but also play as a guide to maximize performance (Mu et al, 2014). Therefore, Enterprises with effective risk management capabilities will better control internal and external risks, to minimize operational efficiency and operating costs (Khan et al, 2020; Song et al, 2019). Subsequently, this will improve its overseas competitiveness and thus improve its export performance.…”

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

Chinese High-Tech Export Performance: Effects of Intellectual Capital Mediated by Dynamic and Risk Management Capabilities

Lee

Wang

2023

Sage Open

This study analyzed the effect of intellectual capital on Chinese exporters’ performance and the joint mediating effect of two-way capabilities to explain the relationships. With a sample of 197 firms responsible for exporting Chinese high-tech products, we empirically evaluated higher-order constructs in a partial least squares structural equation model using a two-stage approach. The results show that firms’ intellectual capital generates dynamic capabilities, which lead human, structural, and relational capital to improve overseas export performance. Furthermore, the study shows risk management capability also has a complementary mediating role in improving overseas export performance. These findings point to the significant role of two-way capabilities, clarifying how risk management capabilities can be used to enhance export performance and highlighting the role of dynamic capabilities in leveraging export performance. Our findings hold managerial implications on how Chinese high-tech exporting businesses adapt to fast-changing environments.