Modeling firm resources –enterprise risk management relationships. An empirical finding using PLS-SEM
| DOI | https://doi.org/10.1108/WJEMSD-05-2015-0026 |
| Date | 14 March 2016 |
| Pages | 35-49 |
| Published date | 14 March 2016 |
| Author | Noraznira Abd Razak,Zuriah Ab Rahman,Halimahton Borhan |
| Subject Matter | Strategy,Business ethics,Sustainability |
Modeling firm resources –
enterprise risk management
relationships
An empirical finding using PLS-SEM
Noraznira Abd Razak
Faculty of Business Management, University Teknologi MARA,
Malacca, Malaysia
Zuriah Ab Rahman
Arshad Ayub Graduate Business School (AAGBS),
University Teknologi MARA, Malacca, Malaysia, and
Halimahton Borhan
Faculty of Business Management, University Teknologi MARA,
Malacca, Malaysia
Abstract
Purpose –The purpose of this paper is to focus, explore, and provide an in-depth analysis of the
relationship between company resources and the process of enterprise risk management (ERM) in
order to strengthen corporate structures against emerging uncertainties.
Design/methodology/approach –This paper proposes a strategic risk management framework for
the development and sustainability of corporate performance by focussing on the dimension of firm
resources extracted from the resources-based theory. This paper focussed on using Malaysia listed
firms under Malaysian Bourse as sample frame using the random sampling technique whereby
questionnaire were distributed among head of risk management department. Of the 600 questionnaires
distributed, 223 were returned completed.
Findings –The survey results indicate that intangible resources play a significant roles in resources –
performance relationship while the other two main dimension that are tangible resources and
capabilities have shown contradictory results.
Research limitations/implications –This paper only focussed on using Malaysia listed firms
under Malaysian Bourse as sample frame.
Practical implications –The management of risk is a dynamic phenomenon and the change of
management that parallel with its evolution demand a revisiting and revamping over and over again
promptly. In order to adapt and survive the volatile environment time and again, the effort to ensure
long-term sustainability has to be made by the firm as success and failure can quickly replace one
another in a relatively short period. The results highlight the various insight that might be helpful to
managers in terms of managing the performance of the firm by concentrating entirely on its risk
management and resources managements process.
Originality/value –Overall it was shown that only certain dimension of resources within the
firm has strong relationship with the performance variation. As such, the company has to ensure
that deployment of resources has to be optimized accordingly by focussing on the types of resources
that matters so that possibility of improving the outcome of the firm in the volatile global environment
can be realized.
Keywords Performance, Cross-disciplinary, Management, Strategy, Globalization, Organization
Paper type Research paper
World Journal of
Entrepreneurship, Management
and Sustainable Development
Vol. 12 No. 1, 2016
pp. 35-49
©Emerald Group Publis hing Limited
2042-5961
DOI10.1108/WJEMSD-05-2015-0026
The current issue and full text archive of this journal is available on Emerald Insight at:
www.emeraldinsight.com/2042-5961.htm
This research was part of a research project fully funded by Fundamental Research Grant
Scheme (FRGS) from Ministry of Education, Malaysia.
35
ERM
relationships
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