The Impact of Enterprise Risk Management on Firm Competitiveness: The Mediating Role of Competitive Advantage in the Omani Insurance Industry

Ammar Al Lawati, Baharuddin M. Hussin, Mohd Rizuan Abdul Kadir and Mohamed Khudari ()
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Ammar Al Lawati: College of Graduate Studies, Universiti Tenaga Nasional, Kajang 43000, Malaysia
Baharuddin M. Hussin: UNITEN Business School, Universiti Tenaga Nasional, Kajang 43000, Malaysia
Mohd Rizuan Abdul Kadir: College of Graduate Studies, Universiti Tenaga Nasional, Kajang 43000, Malaysia
Mohamed Khudari: College of Graduate Studies, Universiti Tenaga Nasional, Kajang 43000, Malaysia

Risks, 2025, vol. 13, issue 10, 1-26

Abstract: In today’s complex economy, firms face various risks. The increasing risks and exposures hinder top performance and impede investments in new project circles. This study examines how Enterprise Risk Management (ERM) practices affect the non-financial performance of Omani insurance companies and investigates the partial mediating role of Competitive Advantage (CA). Using 439 survey responses analysed with PLS-SEM, the results reveal that ERM practices have a positive and significant effect on non-financial performance, and that CA mediates the effects of Internal Environment, Event Identification, and Risk Assessment. This reinforces the strategic dimension of embedding competitive advantage into risk management frameworks. This study offers evidence of how integrating ERM practices can impact organisational performance. It provides a foundation for ongoing research in sectors and areas not previously examined, particularly in developing countries where organisational resilience is imperative. Our study demonstrates how ERM enhances non-financial performance within insurance companies while supporting the view that ERM is a long-term strategic element, not merely limited to risk management. The research contributes evidence for broader application by demonstrating competitive advantage as a mediator. The model facilitates the investigation of ERM impacts across various sectors and regions, especially in developing countries where organisational resilience is crucial.

Keywords: Enterprise Risk Management; competitive advantage; non-financial firm’s performance (search for similar items in EconPapers)
JEL-codes: C G0 G1 G2 G3 K2 M2 M4 (search for similar items in EconPapers)
Date: 2025
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