The mediating effect of communication between ERM practices and firm performance of SMEs in Malaysia

Small and Medium Enterprises (SMEs) represent 98.5% of total business in Malaysia and play crucial roles in employment creation, income generation, and improve the socio-economy of the bottom 40% household income group (B40). In Malaysia SMEs' involvement in business expose themselves to...

Full description

Bibliographic Details
Main Author: Khairul Afzan Aziz (Author)
Corporate Author: Universiti Sultan Zainal Abidin . Faculty of Islamic Contemporary Studies
Format: Thesis Book
Language:Malay
Subjects:

MARC

LEADER 00000cam a2200000 7i4500
001 0000100094
005 20221211093000.0
008 210323s2020 my may
040 |a UniSZA   |e rda 
050 0 0 |a HD61   |b .K43 2020 
090 0 0 |a HD61   |b .K43 2020 
100 0 |a Khairul Afzan Aziz ,   |e author 
245 1 4 |a The mediating effect of communication between ERM practices and firm performance of SMEs in Malaysia   |c Khairul Afzan Aziz 
264 0 |c 2020 
300 |a xix, 412 leaves ;   |c 31 cm. 
336 |a text  |2 rdacontent 
337 |a unmediated  |2 rdamedia 
338 |a volume  |2 rdacarrier 
502 |a Thesis (Doctor of Philosophy) - Universiti Sultan Zainal Abidin, 2020 
504 |a Includes bibliographical references (leaves 357-383) 
505 0 |a 1. Introduction -- 2. ERM and SMES -- 3. Literature review -- 4. Methodology -- 5. Findings -- 6. Discussion and conclusion 
520 |a Small and Medium Enterprises (SMEs) represent 98.5% of total business in Malaysia and play crucial roles in employment creation, income generation, and improve the socio-economy of the bottom 40% household income group (B40). In Malaysia SMEs' involvement in business expose themselves to risks. Hence, SMEs need risk management as an innovative management approach. Literature reviews showed that the practices of ERM contribute to large firm performance. Although ERM is known as a tool to increase stakeholder's value, few firms have used this new tool to manage risks. The objectives of this research are to identify important factors that encourage the likelihood of ERM practices among non-ERM firms and identify important factors that influence the penetration level of ERM practices among ERM firms. This study also examines whether communication mediates the effect between the penetration level of ERM practices and the firm's performance and evaluates whether the practices ofERM affect the firm's performance of SMEs. Based on the technological-organizational­ environmental context (TOE) framework and Diffusion of Innovation (001) Theory, the research conceptual framework was formed from four factors, namely, decision­ maker (D), technology (T), organization (0), and environment (E) as independent variables 1 (IV 1) and the ERM practices as the dependent variable 1 (DV 1). Meanwhile, communication was used as a mediator (M) between the penetration level of ERM practices as independent variable 2 (IV2) and the firm's performance as dependent variables 2 (DV2). Using proportionate stratified random sampling, 300 questionnaires were distributed using a self-administered survey together with 683 online surveys. However, only 192 samples (99 ERM firms, 93 non-ERM firms) were accepted and analyzed using Statistical Package for the Social Sciences (SPSS) and Partial Least Square-Structural Equation Modelling (PLS-SEM). The study confirmed that three factors consisted of 0 (owner manager's ERM knowledge, owner manager's attitude towards ERM), T (complexity) and 0 (firm size) have significant relation with the likelihood of ERM practices. Whereas three factors consisted of T (compatibility), 0 (employees' ERM knowledge level), and E (environmental uncertainty) were supported for the penetration level of ERM practices. This study also revealed that ERM firms outperformed non-ERM firms for both financial and non-financial performance. Communication was found partially mediated between the penetration level of ERM practices and the firm's performance. In conclusion, there are three implications outlined. First, the implication for SME owners, which is the ERM firms' performance, has a higher mean rank compared to non-ERM firms, showing that ERM can be an approach or a tool for SMEs in the decision-making process to enhance productivity and growth. Second, the implication for the government agencies and public sectors, which is, different approaches are needed to encourage non-ERM firms to practice ERM and to increase the penetration level of ERM practices among ERM firms. Third, the implication for academicians, which is, the differences between the ERM firms and non-ERM firm's influential factors made certain the different applications of the conceptual framework for future study. 
610 2 0 |a Universiti Sultan Zainal Abidin   |x Dissertations 
610 2 0 |a Universiti Sultan Zainal Abidin   |x Faculty of Business and Management   |v Dissertations 
650 0 |a Dissertations, Academic 
650 0 |a Risk management 
650 0 |a Risk management   |x Small and medium enterprise   |z Malaysia 
710 0 |a Universiti Sultan Zainal Abidin .   |b Faculty of Islamic Contemporary Studies 
999 |a 1000182337   |b Thesis   |c Reference   |e Gong Badak Campus