Nguyen Ngoc-Long

Risk management has become crucial for organizations in the current era. Therefore, this study assesses the impact of Enterprise Risk Management (ERM) on an organization’s performance and examines how knowledge management and technology adoption mediate this impact, along with the moderating effect of supply chain resilience based on the resource-based view and dynamic capabilities theory. Utilizing a questionnaire-based survey, data were collected from 297 respondents in Ho Chi Minh City, Binh Duong, and Dong Nai, Vietnam, by cluster random sampling. The data were statistically analyzed using the partial least squares method. The results indicated a positive effect of ERM on financial performance, while the association with non-financial performance lacked significance. Knowledge management and technology adoption fully mediated the positive impact of ERM on non-financial performance and partially mediated its relationship with financial performance. Furthermore, supply chain resilience strengthened the positive link between ERM and financial performance. In conclusion, these findings contribute to advancing the comprehension of the mechanisms and dynamics involved in knowledge management and technology adoption as mediators and supply chain resilience as a moderator, regarding an emerging country. The study enriches the risk management literature and significantly contributes to enhancing firm effectiveness.

Type of the article: Research Article

Abstract
Firms in emerging markets are increasingly compelled to implement digital transformation strategies in response to rapid technological disruption and intensifying global competition. However, the impact of such transformation on organizational performance remains underexplored, particularly in resource-constrained contexts. This study aims to assess how digital orientation and digital capacity influence the implementation of digital transformation, and how digital transformation, in turn, affects organizational agility as well as financial and non-financial performance. Data were collected through a survey of senior managers – those directly responsible for leading digital transformation strategies – at 518 mechanical engineering enterprises in Vietnam, conducted between August and November 2024. The research model was tested using partial least squares structural equation modeling (PLS-SEM). The results reveal that digital orientation (β = 0.585, p < 0.001) and digital capacity (β = 0.240, p < 0.001) significantly promote the adoption of digital transformation. Subsequently, digital transformation exerts a strong positive influence on organizational agility (β = 0.815, p < 0.001). In turn, organizational agility significantly enhances financial performance (β = 0.795, R² = 0.632) and non-financial performance (β = 0.536, R² = 0.287). These findings provide empirical evidence that digital transformation efforts can create practical value when they are grounded in well-aligned internal capabilities. The study contributes to clarifying how enterprises in emerging economies can align digital investments with organizational strengths to improve performance amid volatile environments.