Risk Management Practices and Firm Performance with a Mediating Role of Business Model Innovation. Observations from Jordan

Munther Al-Nimer, Sinan S. Abbadi, Ahmad Al-Omush and Habib Ahmad
Additional contact information
Munther Al-Nimer: Administrative Science Accounting Department, Faculty of Economics, The Hashemite University, P.O. Box 330127, Zarqa 13133, Jordan
Sinan S. Abbadi: Accounting Department, Faculty of Business, Balqa’ Applied University, Al-Salt 19117, Jordan
Ahmad Al-Omush: Administrative Science Accounting Department, Faculty of Economics, The Hashemite University, P.O. Box 330127, Zarqa 13133, Jordan
Habib Ahmad: Air University School of Management (AUSOM), Islamabad 44000, Pakistan

JRFM, 2021, vol. 14, issue 3, 1-20

Abstract: This study focused on scrutinizing the influence of Enterprises Risk Management (ERM) on firm performance with a mediating role of Business Model Innovation (BMI). For the purpose, data from 228 Jordanian firms was collected and analyzed. The results indicated that the ERM practices have a significant influence on BMI and financial firm’s performance. The BMI significantly contributed to the financial and nonfinancial performance, whereas it displayed insignificant effects regarding environmental performance. The BMI fully mediated the relationship between ERM practices and financial performance, where a partial mediating effect was observed for the path between ERM practices and nonfinancial performance, while showed no mediating role between the ERM practices and environmental performance. Economies of countries like Jordan are hereby urged to implement the formal ERM practices and to financially educate their top management teams to apply the BMI to gain first-rate performance. This study also encourages the researchers from other countries to extend this model to their economies to unleash useful insights.

Keywords: enterprise risk management practices; Business Model Innovation; financial performance; financial sector; emerging markets (search for similar items in EconPapers)
JEL-codes: C E F2 F3 G (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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