Examining thematic elements in strategic business risk

Ojiako, Udechukwu

doi:10.1108/01409171211195134

Cited by 8 publications

(5 citation statements)

References 50 publications

(72 reference statements)

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“…Risk remains of considerable importance in business management (Ojiako, 2012). Although opportunity is a positive event that affects achievement of objectives, risk is an event that causes negative impact and can counteract value creation.…”

Section: Literature Reviewmentioning

confidence: 99%

Business strategy, enterprise risk management and organizational performance

Soltanizadeh

Rasid

Golshan

et al. 2016

MRR

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Purpose This paper aims to identify the influence of business strategy on enterprise risk management (ERM) adoption and organizational performance (OP). In addition, the mediation effect of ERM on the relationship between business strategy and OP is assessed. Design/methodology/approach A cross-sectional analysis of primary data gathered from 174 public listed companies in Malaysian Bourse through survey was conducted. Findings Companies with cost leadership business strategy are more eager to implement ERM compared to companies with differentiation strategy. The results also indicate that ERM implementation has a significant positive impact on OP. Though ERM is a partial mediator of the relationship between cost leadership strategy and OP, it does not mediate the relationship between differentiation strategy and OP. Research limitations/implications One of the limitations of this study was the small number of respondents, comprising only 174 public listed companies. In addition, the manifest variables adopted from previous studies may not be the best indicators to measure latent variables. Nonetheless, this study fills the gaps in ERM studies by determining the impact of different kinds of strategy on ERM adoption and investigating the mediating effect of ERM on the relationship between business strategy and OP. Practical implications Although the trend in Malaysia seems to move toward ERM adoption, evidence shows that it is not widely practiced among Malaysian firms. Directors of Malaysian companies can understand better the impact of enterprise business strategy on the adoption of risk management and how ERM influences OP. The results of this study also provide valuable insights for the corporate governance regulatory authorities. Originality/value This paper is among the few to assess the impact of firm’s strategy on ERM adoption and to determine the mediation effect of ERM on the relationship between business strategy and OP.

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Section: Literature Reviewmentioning

confidence: 99%

Business strategy, enterprise risk management and organizational performance

Soltanizadeh

Rasid

Golshan

et al. 2016

MRR

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“…The nature and the goals of performance management show similarities and connections to those of risk management (Collier and Berry, 2002;Ferreira and Otley, 2009;Ojiako, 2012), as highlighted by the following definition of performance management systems (PMS): [. .…”

Section: Introductionmentioning

confidence: 99%

Risk and performance management: are they easy partners?

Arena

Arnaboldi

2014

Management Research Review

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Purpose -This paper aims to provide a critical assessment of existing links between risk management systems (RMS) and performance management systems (PMS) through a general review of the literature. Design/methodology/approach -The research approach consists of a literature review, aimed at highlighting the "points of contact" between RMS and PMS along three main dimensions: scope of the system, measurement and ownership. Findings -Key papers and books published in the field are examined. Based on this review, an assessment of similarities and potential synergies between RMS and PMS is offered. In addition, possible avenues for future research are discussed. Practical implications -The paper provides managers with useful insights on pros and cons of integrating RMS and PMS. It highlights possible instruments and organizational arrangements that could be exploited by practitioners to connect the two systems and discusses the implications of different possible configurations. Originality/value -Whilst the professional literature is loaded with illustrations of RMS and PMS as "integrated" solutions, this issue has been only partially addressed by the academic literature that generally focuses on one of the two systems. Hence, the study overall contributes to enrich the knowledge of the relationship between performance and risk management by mapping how and where the two systems are linked.

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“…While calculatedly creating strategies to accomplish objectives, strategists must configure equivocal environments in a way that invests them to achieve a superiority over rivals (Barid and Thomas, 1985). Strategic risk has been highly inclined by four broad categories: environmental, industry, organisational and strategic problem (Barid and Thomas, 1985;Jan and Lars, 2002;Ojiako, 2012;Brain, 2004); each group has a set of factors/variables, and based on the results and level of effort done in the preceding, few variables have been considered in this study that influence the strategic risks of a firm. This study theorises a strategic risk to check its influence on the relationship between strategic thinking and firm performance (Clarke and Varma, 1999;Collis and Hans, 2017).…”

Section: Strategic Riskmentioning

confidence: 99%

What drives organisational performance: strategic thinking, technological change, strategic risks? A modified total interpretive structural modelling approach and MICMAC analysis

Shaik

Dhir

2021

JIBR

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Purpose The purpose of this study is to explain the interrelationships between the elements of strategic thinking, technological change and strategic risks. The main objective of this research is to identify the hierarchy for the elements of thinking, technological change and strategic risk and also to identify the driving powers of these elements. Design/methodology/approach The methodology used in this study is modified total interpretive structural modelling and MICMAC analysis which gives the interrelationships and also the driving powers of the elements by analysing the relationships between the elements from the existing literature. This method helps us in answering/understanding the “what”, “how” and “why” of the research. Modified total Interpretive structural modeling is considered in this study, which helps in doing both the paired comparisons and transitivity checks simultaneously. A digraph is constructed at the end of the analysis, which shows the links between the elements, and a driver dependence matrix is constructed, which shows the driving powers. Findings This study gives an understanding of the role of the elements, the relationships between them and the hierarchy of addressing these elements, and also the driving and dependence power. Findings of this research give us an understanding of how strategic thinking/technological change/strategic drives the performance of the firm. Research limitations/implications This study is conducted with the help of existing literature; this can be further extended by considering the expert opinion. Practical implications The model explains the direct and transitive links of the elements and the strength of the relation between them, which helps the researchers and the practitioners to understand the driving power and importance of these constructs. It also helps us to understand the role of these elements and, if implemented in an organisation, which elements need to be prioritised for enhancing the performance of the firm. Originality/value Research done in the past has individually analysed the elements effecting strategic thinking; this study identifies the relationships between the elements of all three constructs and helps in understanding the levels of hierarchy.

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Examining thematic elements in strategic business risk

Cited by 8 publications

References 50 publications

Business strategy, enterprise risk management and organizational performance

Business strategy, enterprise risk management and organizational performance

Risk and performance management: are they easy partners?

What drives organisational performance: strategic thinking, technological change, strategic risks? A modified total interpretive structural modelling approach and MICMAC analysis

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