The Impact of Enterprise Risk Management Implementation on Organization Performance by Moderating Role of Information Technology

DOI

10.2991/aebmr.k.211119.023How to use a DOI?

Keywords

Enterprise Risk Management; IT Structure; Organization Performance; Organizational Change Capacity; Knowledge Management Process Capability

Abstract

Research purpose: The main purpose of this paper is to examine the path modelling of Enterprise Risk Management (ERM) implementation, Information Technology (IT) structure and organization performance as well as some primary factors which might influence ERM implementation.

Research motivation: In the unpredictable change of environment, enterprises need to have prudent preparations to control and deal with risks. An effective ERM system and good IT structure are believed to support businesses to achieve this purpose. However, literature review shows that there are not many empirical studies combining the effects of ERM implementation, IT structure and organization performance, especially in emerging economies. Therefore, investigating the effects of ERM implementation, IT structure, and organization performance in the context of emerging countries should be studied.

Research design, approach, and method: Data for this research was obtained from a cross-sectional survey with respondents working in enterprises. The analysis of data and hypothesis testing were empirically conducted using partial least square structural equation modelling (PLS-SEM) approach with survey data from 158 business firms in Vietnam.

Main findings: This study has two key findings. First, IT structure is a partial mediator for the relationship between ERM and organization performance. Second, both organizational change capacity and knowledge management (KM) process capability had positive relationships with ERM.

Practical/managerial implications:

This paper provides insights into the value of implementation of ERM among organizations in improving IT structure and performance of enterprises, especially in the context of a transition market like Vietnam. In addition, this study provides implication in terms of manager’s planning and decision making to consider ERM implementation and IT structure as two of the critical success factors of performance.

Copyright

© 2021 The Authors. Published by Atlantis Press International B.V.

Open Access

This is an open access article under the CC BY-NC license.

Download article (PDF)

TY  - CONF
AU  - Tran Anh HOA
AU  - Tran Thi Phuong THANH
AU  - Pham Tra LAM
AU  - Dau Thi Kim THOA
PY  - 2021
DA  - 2021/12/07
TI  - The Impact of Enterprise Risk Management Implementation on Organization Performance by Moderating Role of Information Technology
BT  - Proceedings of the International Conference on Emerging Challenges: Business Transformation and Circular Economy (ICECH 2021)
PB  - Atlantis Press
SP  - 221
EP  - 236
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.211119.023
DO  - 10.2991/aebmr.k.211119.023
ID  - HOA2021
ER  -