Abstract:
This study aims to examine whether enterprise risk management (ERM) techniques include risk identification techniques and frequency of use differ by industry type, and explores the fit with the type of industry with the aim of improving organizational performance. An online survey was conducted among 363 listed companies in Malaysia which produced 120 useable responses. The Partial Least Squares (PLS-SEM) model was used and the data was analyzed using Smart PLS 3. It was found that the type of industry was a determining factor of risk identification techniques and frequency of use. Also, the results suggested a positive relationship between the two components and organizational performance. Finally, regarding the instructiveness of risk identification techniques and frequency of use mediating roles, the results indicated that performance was mediated by highly interactive techniques and frequency of use for industry type.
Machine summary:
Performance Abstract This study aims to examine whether enterprise risk management (ERM) techniques include risk identification techniques and frequency of use differ by industry type, and explores the fit with the type of industry with the aim of improving organizational performance.
g. , Cadez and Guilding, 2008; Chenhall, 2003; Chenhall and Morris, 1986; Gerdin and Greve, 2008; Gordon and Narayanan, 1984; Haedr, 2012; Luft and Shields, 2003).
While the use of contingency theory has been predominant in MCS research (Abdel-Kader and Luther, 2008; Anthony and Govindarajan, 2001; Chenhall, 2003; Chenhall and Brownell, 1988; Chenhall and Langfield- Smith, 1998), there are limited contingency- based studies related to ERM as the component of MCS (Cescon et al.
In order to address this void in the literature, this study offer a wider understanding of effective design of ERM in terms of techniques and frequency applied for identifying risk in particular industries in order to further improve organizational performance.
Accordingly, the following hypothesis has been proposed: H1a: There is a relationship between industry type and adoption of highly interactive <H1>Journal of Comparative Studies in Financial Management and Accounting</H1> Available online at http://www.
5 The Mediating Effect of Interactiveness of Risk Identification Techniques and Frequency of Risk Identification in the Relationship between Type of Industry and Organizational Performance</H3> Taking into consideration industry type as the contingency factor investigated in this study, the relationship between different industry <H1>Journal of Comparative Studies in Financial Management and Accounting</H1> Available online at http://www.