Marketing culture and business performance

2014 ◽  
Vol 32 (7) ◽  
pp. 794-822 ◽  
Author(s):  
Samer Al-Mohammad ◽  
Mamoun Akroush ◽  
Abdelhadi Lutfi Odetallah
Keyword(s):  
Organizational Factors ◽  
Tourism Industry ◽  
Original Model ◽  
Front Line ◽  
Content Type ◽  
Culture Dimensions ◽  
Research Findings ◽  
Culture Strategies ◽  
The Impact

Purpose – The purpose of this paper is to examine the validity and reliability of marketing culture measurement scale developed by Webster (1990, 1993) in the context of Jordanian tourism restaurants industry. Further, the paper aims to assess the impact of marketing culture, and its dimensions, over Jordanian restaurants performance. Design/methodology/approach – A structured and self-administered survey was employed targeting managers and employees of tourism restaurants operating in Jordan. A sample of 334 of tourism restaurants managers and employees were involved in the survey. A series of exploratory and confirmatory factor analyses were used to assess the research constructs dimensions, unidimensionality, validity, and composite reliability. Two structural path models analyses were also used to test the hypothesized relationships of the research model. Findings – The empirical findings indicate that marketing culture dimensions are found to be seven rather than six dimensions as proposed by the original model; service quality, interpersonal relationships, management-front-line interaction, selling task, organization, internal communication, and innovativeness. A new dimension is found, named as management-front-line interaction, which exerted a positive and significant effect on restaurants performance. The structural findings indicate that the marketing culture “construct” has a positive and significant effect on restaurants performance, meanwhile only three out of seven of its dimensions exerted a positive and significant effect on restaurants performance; innovativeness, management-front-line interaction, and organization, respectively. Research limitations/implications – Theoretically, the author examined only seven components of marketing culture; meanwhile there could be other factors of marketing culture, or other organizational factors, that may affect restaurants performance. Empirically, the research has also examined the effect of marketing culture on restaurant financial performance only. Further, the research is industry limited; tourism restaurants in Jordan. Accordingly, the findings cannot be generalized to other service industries without further examination. Practical implications – Tourism restaurants managers should recognize that marketing culture is not simply a number of dimensions that shape it rather; it is a complex organizational phenomenon that affects performance. Marketing culture is a multidimensional construct that consists of seven dimensions not just six as proposed by the original model. Tourism restaurants managers and executives can benefit from the research findings while designing their marketing culture strategies to achieve long-term performance objectives. Originality/value – This is the first research effort devoted to reveal the marketing culture dimensions and examine their effect on tourism restaurants performance in Jordan. Executives and managers can benefit from the research findings to enhance their marketing culture strategies to achieve long-term objectives. International tourism restaurants planning to expand their operations in Jordan's tourism industry have now empirical evidence concerning the marketing culture dimensions and their effect on performance.

A multidimensional model of marketing culture and performance

2015 ◽  
Vol 27 (7) ◽  
pp. 1442-1478
Author(s):  
Mamoun N. Akroush ◽  
Samer M. Al-Mohammad ◽  
Abdelhadi L. Odetallah
Keyword(s):  
Service Quality ◽  
Interpersonal Relationships ◽  
Tourism Industry ◽  
Path Model ◽  
Multidimensional Model ◽  
Front Line ◽  
Content Type ◽  
Culture Dimensions ◽  
And Performance ◽  
Internal Communications

Purpose – The purpose of this paper is to examine a multidimensional model of marketing culture and performance in tourism restaurants operating in Jordan. The paper introduces a model proposing certain associations between Webster’s (1990) marketing culture dimensions and attempts to underline how such associations affect restaurants’ performance. Design/methodology/approach – A structured and self-administered survey was used, targeting managers and employees of tourism restaurants operating in Jordan. A sample of 334 tourism restaurants’ managers and employees were involved in the survey. A series of exploratory and confirmatory factor analyses were used to assess the research constructs dimensions, unidimensionality, validity and composite reliability. Structural path model analysis was also used to test the hypothesised interrelationships of the research model. Findings – The empirical findings indicate that the marketing culture dimensions are seven rather than six, as proposed by Webster’s (1990) original model: service quality, interpersonal relationships, management–front-line interaction, selling task, organisation, internal communication and innovativeness. “Organisation” had positively and significantly affected “interpersonal relationships”. “Interpersonal relationships” had positively and significantly affected each of “management–front-line interaction”, “selling task” and “internal communications”. On the other hand, each of “management–front-line interaction”, “selling task” and “internal communications” had positively and significantly affected “innovativeness”. However, “innovativeness” itself had positively and significantly affected each of “service quality” and restaurant performance. Finally, “service quality” had positively and significantly affected restaurants’ performance. Research limitations/implications – Only seven dimensions of marketing culture were examined; meanwhile, there could also be other dimensions that affect restaurants’ performance. This paper has also examined the effect of a multidimensional model of marketing culture on restaurants’ financial performance only; the use of other types of non-financial measures could yield different results. The fact that paper’s sample consisted only of Jordanian restaurants further limits its generalisation potential. Practical implications – The paper reinforces the importance of sound marketing culture to Jordanian tourism restaurants. It further underlines the importance of several marketing culture dimensions, particularly those related to employees’ selection, development and communication. Further, the paper emphasises the particular importance of front-office employees to the success of Jordanian restaurants. Tourism restaurants’ managers and executives can benefit from such findings for designing their marketing culture strategies to achieve long-term performance objectives. Originality/value – This paper represents the first empirical attempt to examine the interrelationships between marketing culture dimensions introduced by Webster (1990). Accordingly, it should shed more light on the dynamics of marketing culture within service organisations, and how such dynamics affect organisations’ performance. Further, the paper is the first of its kind to study marketing culture dynamics in the context of Jordanian tourism restaurants industry. International tourism restaurants planning to expand their operations in Jordan’s tourism industry have now valuable empirical evidence concerning the marketing culture dimensions and their effect on performance.

Value antecedents in relationship between tourism companies

2014 ◽  
Vol 29 (3) ◽  
pp. 215-226 ◽  
Author(s):  
Beatriz Moliner-Velazquez ◽  
María Fuentes-Blasco ◽  
Irene Gil-Saura
Keyword(s):  
Service Differentiation ◽  
Tourism Industry ◽  
Special Treatment ◽  
Content Type ◽  
Relationship Value ◽  
Relationship Benefits ◽  
The Impact ◽  
The Relationship ◽  
Business To Business

Purpose – In the context of relationship marketing, identifying the elements that contribute to creating value for companies has become essential for managing customer satisfaction and retention. The literature has focused on business-to-end consumer relationships and there are few contributions in the business-to-business context, especially in the tourism industry. The aim of this study is to analyze the process of relationship value creation between tourism companies from the more relevant antecedents proposed in the literature: relationship benefits, long-term orientation and attitude towards the main provider. Design/methodology/approach – A survey was conducted with 309 travel agency managers who assessed the relationship with their main provider. All constructs were measured with multiple-item scales adapted from the literature. The proposed relationships were tested with a causal model estimated by robust maximum likelihood algorithm showing adequate fix indices. Findings – The results show that attitude toward the service provider, long-term relationship and relational benefits – multi-dimensional construct formed by confidence, social and special treatment benefits – make a significant contribution to the value formation in the relationship with the main provider. Furthermore, relationship benefits exert the greatest effect on relationship value. Practical implications – Based on the authors findings, practical suggestions for developing and maintaining successful long-term relations between tourism companies are proposed. To avoid the characteristic disintermediation of the travel industry, both providers and client agencies must be aware of the importance of perceived relationship value. Interpersonal elements such as trust, affective ties and preferential treatment are important aspects in the creation of that value. Service differentiation strategies are also the key to improving supplier image and perceived value in relation to the competition. Finally, the appropriate combination of ICT investment and customized service can provide major opportunities for reinforcing relations between tourism companies. Originality/value – The paper provides empirical evidence of the impact of relationship benefits, attitude and long-term orientation on relationship value in the business-to-business tourism context.

Unpacking the effects of star architecture projects

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nadia Alaily-Mattar ◽  
Dominik Bartmanski ◽  
Johannes Dreher ◽  
Michael Koch ◽  
Martina Löw ◽  
...  
Keyword(s):  
Impact Model ◽  
Content Type ◽  
Research Perspectives ◽  
Research Findings ◽  
Transformative Impact ◽  
The Impact ◽  
Methodological Strategy

PurposeTo explain the process of how star architecture projects generate impact, one must first describe the outputs of such projects and then unpack the wide array of potential effects, which are generated by these outputs. This requires the application of multi-disciplinary research perspectives. Only then can one begin to systematically analyse the long-term impacts. The purpose of this paper is to illustrate how the complexity of such multi-disciplinary research exercise can be managed through the application of a methodological strategy aided by a conceptual impact model.Design/methodology/approachA conceptual impact model is presented, which describes the process of the development of star architecture projects, the various outputs of these projects and the possible effects generated by these outputs. The effects of three case study star architecture projects are discussed.FindingsEmpirical research findings indicate that while the isolation of effects serves the operationalisation of research, the investigation of the impact of star architecture projects on their respective cities must draw on the intertwinement of the fields of urban economy, society and morphology. The paper concludes by arguing for the application of the described methodological strategy as the basis for understanding in which dimensions a star architecture project generates impacts.Practical implicationsThe potential of the proposed impact model for urban analysis when considered as a field of intertwined relations is demonstrated in this article. It helps to reveal how particular local developments change the city significantly in socio-cultural and spatial terms.Originality/valueThe transformative impact of star architecture projects and the role of economic and other effects in this process has hardly been studied, particularly in small and medium-sized cities. This article presents a unique multi-disciplinary research project approached consecutively in the aforementioned fields.

Profile of the tourists visiting Porto and the North of Portugal

2014 ◽  
Vol 6 (5) ◽  
pp. 413-428 ◽  
Author(s):  
Jorge Costa ◽  
Melchior Moreira ◽  
Fernando Vieira
Keyword(s):  
Low Cost ◽  
Tourism Industry ◽  
Content Type ◽  
The Past ◽  
The North ◽  
Tourist Flows ◽  
Other Information ◽  
Marketing Activities ◽  
Research Findings ◽  
The Impact

Purpose – This article aims to characterize the profile of non-resident tourists visiting Porto and the North of Portugal and highlights the importance and evolution of tourist flows to the region, taking into account the airport development and the impact of low-cost airlines. Design/methodology/approach – The article presents and discusses official tourism statistics and the results of on an ongoing survey by Institute for Tourism Planning and Development (IPDT) – Institute of Tourism, conducted at Porto airport on the tourist profile of non-resident tourists to the region. Findings – The research findings reveal a remarkable growth in Porto and North of Portugal tourism – reflecting notable work over the past few years by tourism industry organizations. The Porto airport upgrade allowed for a new dynamic in the region, opening the door to European tourists via low-cost routes. The tourist’s profile depicts a young, active, upper class tourist, with an above average income, who truly appreciates Porto and the North of Portugal region and is willing to recommend it to friends and family. Practical implications – Results provide rich insights on non-resident tourism in the region – where tourists come from, why they selected this destination for their trip and what they enjoy doing, among other information and is highly relevant for strategic and marketing activities related to tourism promotion and the service quality offer. Originality/value – This article seeks to illustrate the non-resident tourist profiles of those visiting Porto and the North of Portugal, based on a unique study conducted over the past three years.

Coronavirus pandemic and economic lockdown; study of strategic initiatives and tactical responses of firms

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Som Sekhar Bhattacharyya ◽  
Shreyash Thakre
Keyword(s):  
Theoretical Perspective ◽  
Working Capital ◽  
Strategic Responses ◽  
Short Term ◽  
Firm Level ◽  
Content Type ◽  
Strategic Initiatives ◽  
Research Findings ◽  
The Impact

Purpose The coronavirus pandemic (COVID-19) and the associated economic lockdown provided a jolt to businesses around the world and the global economy. Amid the ongoing uncertainty, circumstances varied across business sectors and regions, but the common goal for business organizations was to respond effectively, devising strategies to survive the turmoil and accelerate recovery. The narrative in India was no different from the rest of the world. Due to the novelty of the event, literature regarding its impact on the strategic management of firms was scarce. Thus, this paper aims to attempt to ascertain the crisis impact on firms and subsequently unravel the tactical short-term and long-term strategic responses initiated by Indian firms. Design/methodology/approach The authors carried out an empirical investigation to comprehend the strategic foresight adopted by Indian firms. Following a structured literature review, the authors conducted semi-structured open-ended interviews with 28 business experts who were involved in drafting strategic responses for their respective firms. Subsequently, the authors performed a thematic content analysis of the expert interview responses to document firm-level strategic responses to the COVID-19 crisis and associated economic lockdown. The authors further searched reputed media articles to supplement and triangulate the primary research findings with management perspectives. Findings The authors identified that managers had adopted a dual approach responding to the disruption. Companies simultaneously focused on surviving the crisis in the short-term by reconfiguring existing resources and initiated long-term recovery by mobilizing efforts for a redesigned business model. The research findings indicated that companies had adapted to the dynamic chaotic crisis environment to fulfill the changed consumer expectations. Remote working was widely implemented, supply networks were adjusted, operations were managed with minimal resources, working capital was closely monitored and the product-portfolio was revamped to reap benefits in an essentials-only world. The impact of several strategic firm responses was determined through this study on the revenue, profitability, operational costs and regulatory adherence of the companies along with the ability to meet stakeholder expectations. The study suggested that companies encouraged innovative solutions and highlighted the importance of collaborative inter-organizational practices. Research limitations/implications The study contributed to an inter-theoretical perspective on firm strategic initiatives to confront a global crisis. Resource-based view, dynamic capabilities perspective and industrial-organizational theory-based perspectives, were applied. This facilitated an extensive analysis of the entire business ecosystem to identify various paths to accelerated recovery during and post COVID-19 world. Practical implications The research findings would aid managers in drafting a comprehensive response strategy during and post COVID-19 world. This study results would help managers in addressing multiple concerns such as the sustainability of operations in the short-term through working capital management, the fulfillment of changing consumer needs through sustained innovation and business model alterations to ensure long term growth. The study enabled managers to prioritize necessary actions, ascertain the impact of strategic initiatives and build sustainable competitive advantage for long-term growth. Originality/value The novel coronavirus pandemic and the associated economic lockdown impacted firm strategies and this was one of the very first empirical studies regarding how firm-level short-term tactics and long-term strategies were getting reshaped. Traditionally, companies were prepared to handle localized disruptions but a crisis of such epic global proportions jeopardized most business. This study provided an extensive review of the short-term tactical and long-term strategic response perspectives adopted by Indian firms to absorb the impact of this unique crisis and expected recovery with renewed strength. This was one of the first research articles to provide an inter-theoretical perspective on the ongoing global pandemic. This integrated view of the possible impacts of firm-level strategic initiatives provided a detailed knowledge repository to design the crisis response capability of firms.

Social capital and national innovation system: a cross-country analysis

2014 ◽  
Vol 21 (4) ◽  
pp. 453-475 ◽  
Author(s):  
Sepehr Ghazinoory ◽  
Ali Bitaab ◽  
Ardeshir Lohrasbi
Keyword(s):  
Social Capital ◽  
National Level ◽  
Innovation System ◽  
Negative Effects ◽  
Content Type ◽  
Research Findings ◽  
Different Dimensions ◽  
The Impact ◽  
Positive Effect

Purpose – In the last two decades, researchers have paid much attention to the role of cultural values on economic and social development. In particular, the crucial role of different aspects of culture on the development of innovation has been stressed in the literature. Consequently, it is vital to understand how social capital, as a core cultural value, affects the innovation process and the innovative performance at the national level. However, to date, the impact of different dimensions of social capital and innovation has not been properly portrayed or explained. Thus, the purpose of this paper is to investigate the influence of four different dimensions of social capital (institutional and interpersonal, associational life and norms) on two of the main functions of national innovation system (NIS) (entrepreneurship and knowledge creation) based on over 50,000 observations in 34 countries. Design/methodology/approach – In this regard, national-level data from the World Values Survey database was employed to quantify social capital. Entrepreneurship is, in turn, assumed to consist of three sub-indexes and 14 indicators based on the Global Entrepreneurship Index. Knowledge creation is also measured through US Patent Office applications. Also, exploratory factor analysis and structural equation modeling approach were used to build the measurement model and investigate the impact that each factor of social capital had on entrepreneurship and knowledge application, respectively. Measurement and structural models were built and their reliability and validity were tested using various fit indices. Research findings suggest the strong positive effect of institutional trust and networking on entrepreneurship. Also, interpersonal trust and networks were shown to have high influence on knowledge development at the national level. Norms appear to have naïve to medium negative effects on both functions. Findings – Research findings suggest the strong positive effect of institutional trust and networking on entrepreneurship. Also, interpersonal trust and networks were shown to have high influence on knowledge development at the national level. Norms appear to have naïve to medium negative effects on both functions. Originality/value – However, to date, the impact of different dimensions of social capital and innovation has not been properly portrayed or explained.

Socio-economic preconditions of resort agglomerations development in the south of Russia

2018 ◽  
Vol 10 (4) ◽  
pp. 467-477 ◽  
Author(s):  
Matvey S. Oborin ◽  
Irina Kozhushkina ◽  
Tatyana Gvarliani ◽  
Nikolay Ivanov
Keyword(s):  
Natural Resource ◽  
Federal District ◽  
Tourism Industry ◽  
Infrastructure Development ◽  
The South ◽  
Health Tourism ◽  
Resource Potential ◽  
Content Type ◽  
Advantages And Disadvantages ◽  
The Impact

Purpose This paper aims to analyze the modern problems and the main trends of development of the health-improving tourism sector in the southern part of Russia and to identify significant factors in overcoming the complex challenges related to specific socio-economic conditions in the study area. Design/methodology/approach The material that served as the basis of the study comprises statistical data from the Southern Federal District and its subjects, as well as data about the development of tourism infrastructure on the official websites of governments, Ministry of Tourism and the population of the Southern Federal District. This information was systematized from a number of perspectives, including identification of the chronology of health-improving tourism infrastructure development in the chosen territory, as well as the advantages and disadvantages in this area. Based on the results of the study, the authors also developed some recommendations to overcome existing inactive trends in the field of health tourism. Findings This paper sheds light on the understanding of the challenges and changes that took place in the resort agglomerations of the south of Russia in terms of current issues and those that must be addressed in the coming years. It was concluded that health tourism in the south of Russia has old traditions based on the natural resource potential of territories that are included in the composition of the Southern Federal District. At the same time, the authors came to the conclusion that, unfortunately, not resort agglomerations are fully utilized. Furthermore, some historic resorts were not well maintained by local authorities and have suffered more recently because of lack of investment. At present, the financial results of health resorts and others related to health-improving tourism are precarious as most operations are unprofitable, and so complex decisions are needed to address the underlying problem of resource optimization because of the important social and economic role of the cities in this region. They have special natural and resource potential and preserve traditions related to health-improving tourism. Research limitations/implications The paper provides a conceptual analysis based on limited empirical data combined with some directions for further research. Originality/value The paper attempts to reveal the impact of social, economic and geopolitical factors, both negative and positive, on the development of the health-improving tourism segment, restructuring of the Russian tourism market and the emergence of promising opportunities and new directions for development. The findings also provide insights for practitioners and researchers, and the tourism industry can draw on this analysis to guide the development of strategy, increase investment attractiveness, make more effective use of the natural resource potential and maintain pressure on government partners to provide support to tourism.

The storm after the storm: the long-term lingering impacts of hurricanes on schools

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Cassandra R. Davis ◽  
Sarah R. Cannon ◽  
Sarah C. Fuller
Keyword(s):  
North Carolina ◽  
Data Collection ◽  
Instructional Time ◽  
Emotional Needs ◽  
Social Emotional ◽  
Content Type ◽  
The North ◽  
State Education ◽  
The Impact

PurposeThe purpose of this paper is to identify and describe the long-term impacts of hurricanes on schools and discuss approaches to improving recovery efforts.Design/methodology/approachInterviews with 20 school districts in Texas and North Carolina after Hurricanes Harvey (2017) and Matthew (2016). In total, 115 interviews were conducted with teachers, principals, district superintendents and representatives from state education agencies. Interview questions focused on the impact of storms and strategies for recovery.FindingsThe authors uncovered three long-term impacts of hurricanes on schools: (1) constrained instructional time, (2) increased social-emotional needs and (3) the need to support educators.Research limitations/implicationsThis paper focuses on two storms, in two states, in two successive years. Data collection occurred in Texas, one academic year after the storm. As compared to the North Carolina, data collection occurred almost two academic years after the storm.Practical implicationsThis paper illuminates strategies for stakeholders to implement and expedite hurricane recovery through; (1) updating curricula plans, (2) providing long-term counselors and (3) supporting educators in and out of school.Originality/valueTo date, very few studies have explored the ways in which schools face long-term impacts following a disaster. This paper provides insight to the challenges that prolong the impacts of disasters and impede recovery in schools. With hurricanes and related disasters continuing to affect schooling communities, more research is needed to identify the best ways to support schools, months to years after an event.

Mcdonald’s versus Vikram Bakshi

2021 ◽  
Vol 11 (4) ◽  
pp. 1-27
Author(s):  
Nitin Pangarkar ◽  
Neetu Yadav
Keyword(s):  
Emerging Markets ◽  
Multinational Corporations ◽  
Service Industry ◽  
Executive Development ◽  
Content Type ◽  
Academic Level ◽  
Quick Service ◽  
Term Performance ◽  
The Impact

Learning outcomes The case illustrates the challenges of managing JVs in emerging markets. specifically, after going through the case, students should be able to: i.Analyze the contexts in which firms need to form JVs and evaluate this need in the context of emerging markets such as India; ii.Understand how multinational corporations can achieve success in emerging markets, specifically the role of strategic (broader than the product) adaptation in success; iii.Evaluate the impact of conflict between partners on the short-term and long-term performance of a JV; and iv.Create alternatives, evaluate each alternative’s pros and cons, and recommend appropriate decisions to address the situation after a JV unravels and the organization is faced with quality and other challenges. Case overview/synopsis McDonald’s, the global giant in the quick service industry, entered India in 1993 and formed two JVs in 1995 one with Vikram Bakshi (Connaught Plaza Restaurants Ltd or CPRL) to own and operate stores in the northern and eastern zones, and another with Amit Jatia (Hardcastle Restaurants Private Limited or HRPL) to own and operate stores in the western and southern zones. Over the next 12 years, both the JVs made steady progress by opening new stores while also achieving better store-level metrics. Though CPRL was ahead of HRPL in terms of the number of stores and total revenues earned in 2008, the year marked the beginning of a long-running dispute between the two partners in CPRL, Bakshi and McDonald’s. Over the next 11 years, Bakshi and McDonald’s tried to block each other, filed court cases against each other and also exchanged recriminations in media. The feud hurt the performance of CPRL, which fell behind HRPL in terms of growth and other metrics. On May 9, 2019, the feuding partners reached an out-of-court settlement under which McDonald’s would buy out Bakshi’s shares in CPRL, thus making CPRL a subsidiary. Robert Hunghanfoo, who had been appointed head of CPRL after Bakshi’s exit, announced a temporary shutdown of McDonald’s stores to take stock of the current situation. He had to make a number of critical decisions that would impact the company’s performance in the long-term. Complexity academic level MBA, Executive MBA and executive development programs. Supplementary materials Teaching Notes are available for educators only. Subject code CSS 11: Strategy.

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.

Sign in / Sign up

Export Citation Format

Share Document