Retail 4.0 adoption and firm performance among Malaysian retailers: the role of enterprise risk management as moderator

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Poorni Sakrabani ◽  
Ai Ping Teoh
Keyword(s):  
Risk Management ◽  
Firm Performance ◽  
Balanced Scorecard ◽  
Online Survey ◽  
Enterprise Risk Management ◽  
Cross Sectional ◽  
Content Type ◽  
Enterprise Risk ◽  
Impact Of Technology ◽  
The Impact

PurposeThe purpose of this study was to ascertain the determinants of firm performance for Malaysian retailers.Design/methodology/approachAn online survey was conducted to collect responses from members of the Malaysian Retailers' Chain Association. A total of 126 responses were obtained. Data analysis was done by using the PLS-SEM method.FindingsThe results of the study indicate that Retail 4.0 adoption is able to improve retailers' performance as-a-whole by improving the four perspectives of firm performance as given in the Balanced Scorecard, i.e. the finance perspective, the customer perspective, the internal processes' perspective and also learning and growth perspective. Further, enterprise risk management was found to have a positive moderating effect on retailers' performance as-a-whole and also on the finance and customer perspectives of performance.Research limitations/implicationsThe study was conducted only in Malaysia and so, it might be geographically limited. Besides, it is cross-sectional in nature and therefore, the impact might be different if the study had been conducted over a longer period.Practical implicationsThis study provides a useful framework for retailers who are seeking to improve firm performance.Originality/valueThis is one of the first studies to show the impact of Retail 4.0 adoption on firm performance. Besides, this is also the first time, enterprise risk management has been introduced as a positive moderator on the impact of technology adoption on retailers' performance.

Enterprise risk management and sustainability of banks performance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Babajide Oyewo
Keyword(s):  
Risk Management ◽  
Banking Sector ◽  
Management Practice ◽  
Enterprise Risk Management ◽  
Annual Reports ◽  
Banking Reform ◽  
Content Type ◽  
Enterprise Risk ◽  
The Impact

PurposeThis study investigates firm attributes (namely level of capitalisation, scope of operation, organisational structure, organisational lifecycle, systemic importance and size) affecting the robustness of enterprise risk management (ERM) practice, the extent to which ERM affects the performance of banks and the impact of ERM on the long-term sustainability of banks in Nigeria. This was against the backdrop that the 2012 banking reform was a major regulatory intervention that mainstreamed ERM in the Nigerian banking sector.Design/methodology/approachThe study employed a mixed methodology of content, trend and quantitative analyses. Ex post facto research design was deployed to analyse performance differential of banks, with respect to the implementation of ERM, over a 10-year period (2008–2017). A disclosure checklist developed from the COSO ERM integrated framework was used to assess the robustness of ERM by content-analysing divulgence on risk management in published annual reports. The banking reform periods were dichotomised into pre- (2008–2012) and post- (2013–2017) reform periods. Jonckheere–Terpstra test, independent sample t-test and Mann–Whitney test were applied to analyse a total of 1,036 firm-year observations over the period 2008–2017.FindingsResult shows that bank attributes significantly affecting the robustness of risk management practice are level of capitalisation, scope of operation, systemic importance and size. Performance of banks improved slightly during the post-2012 banking reform period. This suggests that as banks consolidate on the gains of ERM, benefits of the regulatory policy on risk management may be realised in the long run. Result also shows that ERM enhances long-term performance, connoting that effective risk management could serve as a competitive strategy for surviving turbulence that typically characterises the banking sector.Practical implicationsThe emergence of level of capitalisation, scope of operation, systemic importance and size as determinants of ERM provides empirical evidence to support the practice of reviewing the capital requirements for banking business from time to time by regulatory authorities (i.e. recapitalisation policy) as a strategy for managing systemic risk. Top management of banks may consider instituting mechanisms that will ensure risk management is given prominence. A proactive approach must be taken to convert risks to opportunities by banks and other financial institutions, going forward, to cope with the vicissitudes of financial intermediation.Originality/valueThe originality of the study stems from the consideration that it provides some new insights into the impact of ERM on banks long-term sustainability in a developing country. The study also contributes to knowledge by exposing the factors determining the robustness of risk management practice. The study developed a checklist for assessing ERM practice from annual reports and other risk management disclosure documents. The paper also adds to the scarce literature on risk governance and risk management.

Does technology orientation predict firm performance through firm innovativeness?

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Seemab Yousaf ◽  
Muhammad Khalid Anser ◽  
Muhammad Tariq ◽  
Sakhawat Ur Rehman Sahibzada Jawad ◽  
Sadaf Naushad ◽  
...  
Keyword(s):  
Firm Performance ◽  
Longitudinal Research ◽  
Cross Sectional ◽  
Content Type ◽  
Mediating Role ◽  
Correlation And Regression Analysis ◽  
Firm Innovativeness ◽  
Impact Of Technology ◽  
Technology Orientation ◽  
The Impact

PurposeThe purpose of this study is to investigate the impact of technology orientation (TO) on firm performance (FP). This study also aims to identify the mediating role of firm innovativeness (FI) in the relation between TO and FP.Design/methodology/approachQuantitative approach has been adopted for analyzing the impact of TO on FP in software houses located in two big cities of Pakistan. Mean, standard deviation, correlation and regression analysis were used.FindingsResults proved that of TO predicts FP and FI mediate the relationship between TO and FP.Practical implicationsThis study used cross-sectional further studies may be conducted using longitudinal research design for achieving in-depth insights.Social implicationsSoftware houses should focus on TO and innovativeness for improving their performance.Originality/valueThis research guides the way to improve performance TO and innovativeness of software houses based on the empirical results.

A framework for enterprise risk identification and management: the resource-based view

2019 ◽  
Vol 34 (2) ◽  
pp. 162-188 ◽  
Author(s):  
Birendra K. Mishra ◽  
Erik Rolland ◽  
Asish Satpathy ◽  
Michael Moore
Keyword(s):  
Risk Management ◽  
Online Survey ◽  
Risk Identification ◽  
Enterprise Risk Management ◽  
Sample Survey ◽  
Risk Exposure ◽  
Organizational Resources ◽  
Data Set ◽  
Content Type ◽  
Enterprise Risk

Purpose This study aims to examine the factors influencing enterprise risk management and propose a framework for identifying and explaining the components of enterprise risk management. To enable broader analytical thinking about risk factors, the framework utilizes the resource-based theory to link various classes of risks to an extended set of organizational resources. Design/methodology/approach The paper opted for an exploratory study using a sample from an online survey. The survey subjects were recruited from the membership database of the American Institute of Certified Public Accountants, focusing primarily on CFOs. The survey consisted of six sections: demographics, a section on each of the four risk types included in ERM: strategic risk, operational risk, financial risk and hazard risk, and exit questions (where very general questions about ERM were asked). The survey yielded a data set of 227 valid responses. Findings Using the associated sample survey data, the paper provides empirical validation of the proposed framework that managers in any organizations could use to identify and manage risks. Research limitations/implications The proposed model does have limitations that predominantly exist from the fact that human judgment in decision-making is not always data-driven, and hence, a proper risk exposure could be ignored based on pure arguments of cost and benefits from domain experts. Therefore, researchers and practitioners are encouraged to test the proposed framework further. Practical implications Risk exposure is not a snapshot event in an organization’s time horizon. Rather, risk identification is an ongoing process and the proposed framework allows organizations to handle increasing complex risks and/or identifying them based on how the organizational resources may be exposed over time. Managers could use a form of risk control analytics (monitoring dashboard of all identified risks under each interaction sets on a regular basis) to become more proactive in managing risk or exploiting opportunities across enterprise. Originality/value This paper fulfills an identified need to study how enterprise risks exposure can be proactively assessed and managed.

Enterprise risk management: a capability-based perspective

2017 ◽  
Vol 18 (3) ◽  
pp. 234-251 ◽  
Author(s):  
Yevgen Bogodistov ◽  
Veit Wohlgemuth
Keyword(s):  
Risk Management ◽  
Dynamic Capabilities ◽  
Enterprise Risk Management ◽  
Dynamic Capability ◽  
Resource Based View ◽  
Content Type ◽  
Enterprise Risk ◽  
Risk Management Process ◽  
Management Concepts ◽  
The Impact

Purpose The purpose of this study is to enhance the existing enterprise risk-management (ERM) theory by introducing both a resource-based view and a dynamic capability perspective. These strategic management concepts might resolve several theoretical shortcomings in the field of risk management. The concept of risk-management capabilities is proposed as an explanation of a firm’s risk resilience. Design/methodology/approach This paper is conceptual in nature. For illustrative purposes, the paper refers to practical examples. Findings First, the resource-based view provides a framework that helps to set priorities in risk management. Second, the dynamic capability perspective illustrates how firms can handle unforeseen events. Third, it is proposed that dynamic capabilities are needed to allow a constant reassessment of the impact of specific resources and, consequently, of ERM priorities. Fourth, a risk-management capability, as an integral part of a dynamic capability, allows firms to develop risk resilience in turbulent environments. Research limitations/implications This paper develops an enhanced framework for ERM within specific boundary conditions. It shows how priorities at the strategic level are to be set, and how these priorities influence the operational level of risk management. Practical implications The framework provides clear guidelines on setting priorities in ERM and implementing a risk-management process within firms. Originality/value This study contributes to the theoretical literature on ERM by enhancing it through a new framework. The resource-based view and dynamic capability perspective benefit through insights from risk-management literature.

The effect of enterprise risk management on financial performance and firm value: the role of environmental, social and governance performance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Chairani Chairani ◽  
Sylvia Veronica Siregar
Keyword(s):  
Risk Management ◽  
Firm Performance ◽  
Financial Performance ◽  
Firm Value ◽  
Enterprise Risk Management ◽  
Content Type ◽  
Thomson Reuters ◽  
Enterprise Risk ◽  
Moderating Role

Purpose This study aims to examine the effect of enterprise risk management (ERM) on financial performance and firm value, as well as the moderating role of environmental, social and governance (ESG) performance. Design/methodology/approach The samples in this study are listed companies in the ASEAN 5 (Indonesia, Malaysia, Philippines, Singapore and Thailand) during the years 2014–2018, with total observations of 680 firm-years. Fixed effect panel data regressions were used to test the hypotheses. The data was collected from Financial Report, Annual Reports and Thomson Reuters. Findings The results show that ERM has a positive significant effect on financial performance and firm value. This paper also finds that ESG has a significant moderating role in increasing the effect of ERM on firm value. Further, this paper divides the samples into sensitive and non-sensitive industries and find a significant moderating role of ESG performance on firm performance for sensitive industries. Originality/value Extant studies have not empirically examined the moderating role of ESG on the effect of ERM on firm performance and firm value. The findings have important implications in suggesting that firms need to analyze various threats and opportunities related to and ESG risks in achieving competitive advantage.

scholarly journals The Impact of the Adoption of Enterprise Risk Management on the Industrial Financial Performance

2017 ◽  
Vol 6 (6) ◽  
pp. 9-20
Author(s):  
Kingsley Karunaratne Alawattegama
Keyword(s):  
Risk Management ◽  
Firm Performance ◽  
Firm Value ◽  
Positive Impact ◽  
Value Relevance ◽  
Secondary Data ◽  
Enterprise Risk Management ◽  
Integrated Framework ◽  
Enterprise Risk ◽  
The Impact

Enterprise risk management (ERM) has gained an increased attention during the recent past as an integrated approach to manage risk for creating and preserving firm value. The objective of this study is to explore and empirically verify as to whether the adoption of the ERM has an impact on the firm performance. This study uses both primary and secondary data pertaining to 129 companies listed on the Colombo Stock Exchange under the banking & finance, insurance, diversified, manufacturing, food and beverage and chemical and pharmaceutical sectors. Primary and secondary data are collected by distributing a survey questionnaire and analyzing the published financial statements of the observing companies. Researcher adopts ERM integrated framework suggested by the committee of sponsoring organization (COSO) of the Treadway Commission of the USA to assess the value relevance of ERM and uses return on equity (ROE) as a proxy to measure the firm performance. This study finds, except for control activities, none of the key ERM functions, suggested by the COSO’s ERM integrated framework, has a significant impact on the performance of listed companies. Internal environment, objective setting, and information & communication indicated a weak positive impact on the firm performance. Nevertheless, none of those impacts were statistically significant. Empirical evidence reveals that firms’ risk responding strategies have no impact on the performance. Surprisingly, monitoring of ERM functions has weak negative, but not significant, impact on the firm performance. These findings are contradictory with the theoretical expectation that the adoption of ERM practices has a positive impact on firm performance as confirmed by the prior researchers.

Audit committee characteristics, enterprise risk management and stock price synchronicity

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Zeshan Ghafoor ◽  
Irfan Ahmed ◽  
Arshad Hassan
Keyword(s):  
Risk Management ◽  
Stock Price ◽  
Audit Committee ◽  
Enterprise Risk Management ◽  
Policy Implications ◽  
Stock Price Synchronicity ◽  
Content Type ◽  
Negatively Associated ◽  
Enterprise Risk ◽  
The Impact

Purpose This study aims to examine the impact of audit committee (AC) characteristics and enterprise risk management (ERM) on stock price synchronicity (SYNCH). Design/methodology/approach Based on a sample of 437 US-based firms over the period 2010 to 2017, the current study uses fixed-effect and ordinary least square to test the formulated hypotheses. Majority of the sample firms are based on the S&P 500 index. This study also performs a battery of robustness checks. Findings The authors find that overall female members and female financial experts and female chairpersons of the AC are negatively associated with SYNCH. Similarly, the study endorses the monitoring role of financial experts and the diligence of the AC (threshold of four annual meetings), as both are negatively associated with SYNCH. However, the authors find that the AC chaired by the financial expert is also negative but insignificantly associated with SYNCH. Finally, the study finds that ERM is also negatively linked with SYNCH. Practical implications The findings of the current study offer some important policy implications. For instance, the shareholders can benefit from the monitoring abilities of women and financial experts by increasing their ratio in the AC. The study also offers some useful insights regarding the financial experts and chair of the AC and ERM. Originality/value The current study examines the association of AC characteristics with SYNCH, while the prior literature only assesses the impact of various board characteristics (such as size, independence and gender diversity). The study also contributes to the literature of ERM by providing new insights on the influence of the presence of ERM framework/program on SYNCH.

scholarly journals The Impact of Enterprise Risk Management on Firm Performance: Evidence from Sri Lankan Banking and Finance Industry

2017 ◽  
Vol 13 (1) ◽  
pp. 225
Author(s):  
Kingsley Karunaratne Alawattegama
Keyword(s):  
Risk Management ◽  
Firm Performance ◽  
Firm Value ◽  
Positive Impact ◽  
Enterprise Risk Management ◽  
Integrated Framework ◽  
Banking And Finance ◽  
Finance Industry ◽  
Enterprise Risk ◽  
The Impact

This study explores the impact of the adoption of enterprise risk management (ERM) practices on firm performance. A sample of forty five banking and finance companies listed on the Colombo Stock Exchange (CSE) was selected for this study and uses both primary and secondary data for the empirical analysis. The extent of adoption of ERM practices was assessed by using the ERM integrated framework of committee of sponsoring organization (COSO) of the Treadway Commission of USA. Return on equity (ROE) is used as a proxy to measure the firm performance and uses multivariate regression analysis to assess the impact of key ERM functions on firm performance. This study finds none of the eight key ERM functions suggested by the COSO’s ERM integrated framework has a significant impact on firm performance. Event identifications, risk assessment, risk response and information & communication indicate a positive impact on firm performance. However, none of those impacts were significant. Surprisingly, empirical evidence reveals that objective setting; event identification, control activities and monitoring of ERM functions have a negative, but not significant, impact on the firm performance. These findings induce the corporate managers to pay a close attention to the cost-benefits considerations when designing and implementing ERM practices and not heavily relied upon and extensively invest on ERM as a vehicle for creating firm value.

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