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The Effect of Enterprise Risk Management on Ameliorating Competitive Advantage: A Cross-Sectional Study of Software Houses in Pakistan

Sameeta Javaid and Faheem Aslam

Pertanika Journal of Social Science and Humanities, Volume 29, Issue 4, December 2021

DOI: https://doi.org/10.47836/pjssh.29.4.24

Keywords: Competitive advantage, enterprise risk management, organizational culture, software industry

Published on: 13 December 2021

In the current dynamic environment, organizations need a more anticipatory and effective risk management system. Implementing the holistic Enterprise Risk Management (ERM) process will perceive, analyze, and assess risks as they must be regarded from the entire enterprise’s perspective. The research aims to empirically analyze the effect of ERM practices on the Competitive Advantage (CA) and examine the moderating role of Organizational Culture (OC) in the Software industry of Pakistan. The primary data were obtained from 250 respondents through the questionnaire method. The validity and reliability were analyzed by using Structural Equation Modeling Analysis, PLS Algorithm, and Bootstrapping. The results show that the implementation of ERM has a significant effect on firms’ competitive advantage. The analysis supports the hypothesis and identifies the positive moderating effect of organizational culture in carrying out ERM programs, which can enhance organizational competitiveness. This study is useful for managers to help them in the planning and decision-making phase so that they can act responsibly in a rapidly changing environment and consider organizational culture as one of the key factors of the ERM program that helps accomplish organizational competitiveness.

ISSN 0128-7702

e-ISSN 2231-8534

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