Enterprise risk management and firm performance: Exploring the roles of knowledge, technology, and supply chain

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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.

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    • Figure 1. Hypothesized model
    • Figure 2. Moderation effect of supply chain resilience on ERM and financial performance
    • Table 1. Demographic analysis of respondents
    • Table 2. Variables and their indicators
    • Table 3. Fornell-Larcker criterion
    • Table 4. Heterotrait-Monotrait ratio (HTMT)
    • Table 5. Path analysis results
    • Table 6. Model fitness
    • Table 7. Analysis of the mediating effect
    • Data curation
      Le Vinh Quang
    • Investigation
      Le Vinh Quang
    • Resources
      Le Vinh Quang
    • Software
      Le Vinh Quang
    • Validation
      Le Vinh Quang
    • Visualization
      Le Vinh Quang
    • Writing – original draft
      Le Vinh Quang
    • Conceptualization
      Nguyen Ngoc-Long
    • Methodology
      Nguyen Ngoc-Long, Pham Xuan Giang
    • Supervision
      Nguyen Ngoc-Long
    • Writing – review & editing
      Nguyen Ngoc-Long, Pham Xuan Giang
    • Formal Analysis
      Pham Xuan Giang
    • Funding acquisition
      Pham Xuan Giang
    • Project administration
      Pham Xuan Giang