The Effect of Enterprise Risk Management Practice on SME Performance

Yakob, Sajiah; B.A.M, Hafizuddin-Syah; Yakob, Rubayah; Raziff, Nur Aufa Muhammad

doi:10.21002/seam.v13i2.11785

Cited by 20 publications

(17 citation statements)

References 28 publications

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“…But the result of this research is not in line with the research Wang et al (2018) showing the weakness of ERM, with a systematically bad approach to the mechanism of revenue control, it will be able to contribute to the value of the company in the long term. Likewise, other researches by Anwar (2018), Florio and Leoni (2017), Barata et al (2022), Yakob et al (2020), andZou andHassan, 2017) are not in line and show that ERM contributes significantly to the company performance. Thus, the finding in this research is in line with and confirms the result of previous research that ERM does not directly contribute to company performance based on the research on the shipping companies listed on the Indonesia Stock Exchange.…”

Section: Enterprise Risk Management and Company Performancementioning

confidence: 86%

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

Ricardianto¹,

Lembang²,

Tatiana³

et al. 2023

10.5267/j.uscm

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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.

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Section: Enterprise Risk Management and Company Performancementioning

confidence: 86%

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

Ricardianto¹,

Lembang²,

Tatiana³

et al. 2023

10.5267/j.uscm

View full text Add to dashboard Cite

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“…There are many reasons why SMEs fail; those mentioned above are attributed to some constraints SMEs face (Msomi & Olarewaju, 2021;Mbomvu et al, 2021). According to Rehman and Anwar (2019) and Yakob, Hafizuddin-Syah, Yakob, and Raziff (2019), risk management significantly affects business performance.…”

Section: Sustainability Of Smesmentioning

confidence: 99%

. Operational risk factors and the sustainability of small and medium manufacturing enterprises in South Africa

Shipanga¹,

Roux²,

Dubihlela³

2022

IRD

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In South Africa, the success of Small and Medium-sized Enterprises (SMEs) is essential in developing the economy as these businesses are known as drivers of economic growth. However, these SMEs have a high failure rate, mainly caused by operational risks. According to Scholarly literature, operational risk is any event that disrupts the normal flow of business processes. It generates financial loss or damage due to operational risk factors: people, process, system and external events. It was further established in South Africa that when these operational risk factors are not controlled, they can adversely impact the sustainability of SMEs. Most of these manufacturing enterprises do not implement operational risk management as they consider it a privilege of large enterprises. These Manufacturing companies must implement operational risk management to mitigate potential threats. This research study aims to investigate the operational risk factors affecting Manufacturing SMEs' sustainability in the Cape Metropole. Quantitative data was acquired from 85 respondents (managers/or owners) of Manufacturing SMEs in the Cape Metropole. Based on the results, it was found that all four of these operational risk factors still affect the sustainability of these business entities. To deal with these operational risk factors effectively, SMEs need operational risk management to identify, minimise and mitigate risks that negatively affect their sustainability.

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“…Examining a company's financial performance is a way to determine the precise financial effects of its operations and policies (Yakob et al, 2020;Ali et al, 2020). It is a way of figuring out the monetary value of the results of a company's operations and policies.…”

Section: Financial Performancementioning

confidence: 99%

“…This study proposed five financial performance metrics based on earlier research (Return on Sales, Return on Investment, Sales Growth Rate, Return on Asset, and Return on Equity). Furthermore, many studies that assessed the impact of GC on company performance used published secondary data to measure financial performance, which some academics claim is inaccurate, not entirely available, and incomplete, especially in developing countries (Semrau et al, 2016;Yang et al, 2018;Yakob et al, 2020). The relationship between CG dimensions practice and financial performance (Return on Sales, Return on Investment, Sales Growth Rate, Return on Asset, and Return on Equity) of manufacturing firms has been studied before, but this is the first study to propose measuring the moderating influence of OC on that relationship .…”

Section: Financial Performancementioning

confidence: 99%

The Moderating Role of Organizational Culture on the Relationship between Corporate Governance Dimensions and Financial Performance in Saudi Manufacturing Industry: A Theoretical Framework

Aldriweesh¹,

Zakuan²,

Bajuri³

et al. 2022

IJARAFMS

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Corporate governance (CG) is critical in developing a corporate culture of awareness, transparency, and openness. Despite this, previous studies have not yet reached an agreement on the most important dimensions of CG implementation and their correlation with the financial performance of financial and non-financial companies, and there is a scarcity of studies that examined variables such as organisational culture (OC) that could improve CG implementation and their relationship with firm financial performance, particularly in developing countries. This paper provides a brief overview of the dimensions of CG implementation, which are board properties, audit committee characteristics, and transparency and disclosure as the most important dimensions of CG implementation, and their impact on financial performance in developing-country manufacturing firms. Furthermore, the purpose of this study is to look into the role of OC as a moderating variable in the relationship between the implementation of CG dimensions (board properties, audit committee characteristics, and transparency and disclosure) and the financial performance of manufacturing firms in developing countries. A conceptual model was developed for this study based on previous literature, revealing that there is a theoretical correlation between board properties, audit committee characteristics, and transparency and disclosure as main dimensions of CG implementation and financial performance in developing countries' manufacturing firms, most notably, this study also theoretically demonstrated the role of OC as a primary determinant in affecting the association between CG dimension implementation and financial success in manufacturing enterprises in developing countries. However, to explore correlations in the suggested model, these theoretical conclusions require a survey of a sample of executive directors in manufacturing enterprises in a developing country such

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The Effect of Enterprise Risk Management Practice on SME Performance

Cited by 20 publications

References 28 publications

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

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

. Operational risk factors and the sustainability of small and medium manufacturing enterprises in South Africa

The Moderating Role of Organizational Culture on the Relationship between Corporate Governance Dimensions and Financial Performance in Saudi Manufacturing Industry: A Theoretical Framework

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