Enterprise risk management and business strategy on firm performance: The role of mediating competitive advantage

Abstract

This research aims to know and analyze the contribution of enterprise risk management and business strategy to the competitive advantage and company performance of shipping companies listed on the Indonesia Stock Exchange. The company performance and competitive advantage of shipping companies listed on the Indonesia Stock Exchange fluctuate and are decreasing. The enterprise risk which is not well-managed can result in a decrease in competitive advantage and company performance. The shipping companies having no competitive advantage will have poor performance and lose in the competition with similar companies. This research uses Path Analysis with the analysis tool of Partial Least Square SmartPLS3 and its path coefficient significance test using a t-test. The total number of samples is 65 consisting of 13 companies with five years of observation taken using the purposive sampling technique. The result of this research states that shipping companies in Indonesia can increase their company performance through enterprise risk management. So, the companies must practice enterprise risk management properly where the aspect of risk management is integrated into the company strategy. Shipping companies in Indonesia can also increase their company performance through competitive advantage so that they can increase their revenue. Shipping companies can increase their company performance through business strategy, so they must implement a business strategy.

Supply Chain Digitalization, Green Supply Chain, Supply Chain Resilience Toward Competitiveness and Msmes Performance

“…The findings of this research are able to prove the existence of Porter's competitive advantage theory that competition is the core of a company's success and failure, as well as determining the appropriateness of company activities that can support the company's operational performance. The findings of this research, both in terms of description and measurement model of indicators for competitiveness, are very priority in their application according to respondents' assessments and have a dominant contribution in reflecting the company's competitiveness (Ricardianto et al, 2023;Siagian et al, 2022). In addition, it supports the opinion that high-quality performance is very important for the success of operations and can influence the company's competitive advantage position.…”

“…This phenomenon is, for example, in the case of Scania, one of the 26 case companies in Björkdahl's (2020) study, the results of which reveal that digitalization brings new business growth opportunities. A company will most likely reduce its cash conversion cycle by increasing supply-side digitalization (Magretta, 1998), directly affecting its profitability, increasing its competitiveness and creating such (Ricardianto et al, 2023). In the existing literature, the digitalization of supply chains is believed to benefit organizations.…”

Examining The Role of Big Data Analytics and Data Availability on Sustainable Competitive Advantage and Business Performance: Mediating Role of Innovative Capabilities

“…The survey comprised of a series of 21 questions, where participants assessed each question using a five-point Likert scale that ranged from "1: strongly disagree" to "5: strongly agree". The selection of the questionnaire was based on the existing literature, specifically the studies conducted by (Makhloufi et al, 2023;Ramadan et al, 2020). The present study employed partial least squares-structural equation modelling (PLS-SEM) as a statistical software tool for data analysis and hypothesis testing.…”

“…BDAC is widely recognized as a dynamic capability, exhibiting qualities such as repeatability that are inherent to dynamic capabilities. When correctly used, this dynamic capacity has the potential to provide unique experiences that are difficult for rivals to replicate, hence creating valuable assets that enhance competitive advantage (Ramadan et al, 2020). In order to fully harness the capabilities of Big Data Analytics (BDA), it is crucial to ensure the accessibility and availability of data (Aidara et al, 2021).…”

“…The term "strategic competitive advantage" (SCA) refers to the extensive collection of tangible and intangible assets, skills, and distinctive qualities that a company has. These characteristics make it difficult for rivals to copy or replicate them (Ricardianto et al, 2023). Organisations must use their capabilities wisely in order to gain sustainable competitive advantage (SCA), notably via the use of big data analytics (BDA) (Algarni et al, 2023).…”