IDEAS home Printed from https://ideas.repec.org/a/pje/journl/article27winii.html
   My bibliography  Save this article

Enhancing Success of SMES Through Risk Enterprise Management: Evidence From A Developing Country

Author

Listed:
  • Blessward JENYA*
  • Maxwell SANDADA*

Abstract

Owing to the lack of literature on risk management practice in Zimbabwe, the study sought to close the gap by investigating the impact of main dimensions of the enterprise risk management on Small and Medium Enterprises (SME) performance. A quantitative research study was carried out by sending the structured questionnaire to (randomly selected) 150 SMEs located in Harare. The data was analysed by correlation and regression analyses. The study provides evidence of positive relationship between risk management dimensions and the SME performance. The findings would provide invaluable insights into SME management on how to effectively manage the risk for their sustainability.

Suggested Citation

  • Blessward JENYA* & Maxwell SANDADA*, 2017. "Enhancing Success of SMES Through Risk Enterprise Management: Evidence From A Developing Country," Pakistan Journal of Applied Economics, Applied Economics Research Centre, vol. 27(2), pages 173-188.
    • Handle: RePEc:pje:journl:article27winii
    as

    Download full text from publisher

    File URL: http://www.aerc.edu.pk/wp-content/uploads/2017/12/2-ENHANCING-SUCCESS-OF-SMES-THROUGH-RISK-1.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Brian W. Nocco & René M. Stulz, 2006. "Enterprise Risk Management: Theory and Practice," Journal of Applied Corporate Finance, Morgan Stanley, vol. 18(4), pages 8-20, September.
    2. Bartelsman, Eric J. & Beetsma, Roel M. W. J., 2003. "Why pay more? Corporate tax avoidance through transfer pricing in OECD countries," Journal of Public Economics, Elsevier, vol. 87(9-10), pages 2225-2252, September.
    3. Thomas Henschel, 2006. "Risk management practices in German SMEs: an empirical investigation," International Journal of Entrepreneurship and Small Business, Inderscience Enterprises Ltd, vol. 3(5), pages 554-571.
    4. Lang, William W. & Jagtiani, Julapa, 2010. "The Mortgage Financial Crises: The Role of Credit Risk Management and Corporate Governance," Working Papers 10-12, University of Pennsylvania, Wharton School, Weiss Center.
    5. Leen Paape & Roland F. Spekl�, 2012. "The Adoption and Design of Enterprise Risk Management Practices: An Empirical Study," European Accounting Review, Taylor & Francis Journals, vol. 21(3), pages 533-564, January.
    6. Verbeeten, Frank H.M. & Boons, Arnick N.A.M., 2009. "Strategic priorities, performance measures and performance: an empirical analysis in Dutch firms," European Management Journal, Elsevier, vol. 27(2), pages 113-128, April.
    7. Jensen, Michael C. & Meckling, William H., 1976. "Theory of the firm: Managerial behavior, agency costs and ownership structure," Journal of Financial Economics, Elsevier, vol. 3(4), pages 305-360, October.
    8. William Lang & Julapa Jagtiani, 2010. "The Mortgage and Financial Crises: The Role of Credit Risk Management and Corporate Governance," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 38(3), pages 295-316, September.
    9. AfDB AfDB, . "Annual Report 2012," Annual Report, African Development Bank, number 461.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kafigi Jeje, 2020. "Risk-Taking and Performance of Small and Medium-Sized Enterprises: Lessons from Tanzanian Bakeries," Journal of Economics and Behavioral Studies, AMH International, vol. 12(3), pages 1-22.
    2. Lenka Syrová & Jindřich Špička, 2023. "Exploring the indirect links between enterprise risk management and the financial performance of SMEs," Risk Management, Palgrave Macmillan, vol. 25(1), pages 1-27, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Alexis Catanzaro & Christine Teyssier, 2021. "Export promotion programs, export capabilities, and risk management practices of internationalized SMEs," Small Business Economics, Springer, vol. 57(3), pages 1479-1503, October.
    2. Juan Antonio Azkunaga & Leire San-Jose & Sara Urionabarrenetxea, 2013. "The impact of financial globalization and financialization on the economy in the current crisis through banking corporate governance," Contemporary Economics, University of Economics and Human Sciences in Warsaw., vol. 7(3), September.
    3. Cynthia Clark & Harry Van Buren, 2013. "Compound Conflicts of Interest in the US Proxy System," Journal of Business Ethics, Springer, vol. 116(2), pages 355-371, August.
    4. Gérard Mondello & Nissaf Ben Ayed, 2020. "Agency Theory and Bank Governance: A Study of the Effectiveness of CEO's Remuneration for Risk Taking," GREDEG Working Papers 2020-03, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France.
    5. Tarek Roshdy Gebba & Mohamed Gamal Aboelmaged, 2016. "Corporate Governance of UAE Financial Institutions: A Comparative Study between Conventional and Islamic Banks," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 6(5), pages 1-7.
    6. Al-Amri, Khalid & Davydov, Yevgeniy, 2016. "Testing the effectiveness of ERM: Evidence from operational losses," Journal of Economics and Business, Elsevier, vol. 87(C), pages 70-82.
    7. Muhammad Zeeshan Younas, 2020. "How Did Risk Management Methods Change After The 2007 Sub-Prime Mortgage Crisis In The United Kingdom?," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 9(1), pages 22-31, March.
    8. Chenguang Hu & Kyung Hwan Yun & Ziqi Su & Chang Xi, 2022. "Effective Crisis Management during Adversity: Organizing Resilience Capabilities of Firms and Sustainable Performance during COVID-19," Sustainability, MDPI, vol. 14(20), pages 1-20, October.
    9. Christopher Boudreaux, 2019. "When does privatization spur entrepreneurial performance? The moderating effect of institutional quality in an emerging market," Papers 1901.03356, arXiv.org.
    10. Roda Jean-Marc & Kamaruddin Norfaryanti & Palhiarim Tobias Rafael, 2014. "Deciphering Corporate Governance and Environmental Commitments among Southeast Asian Transnationals: Uptake of Sustainability Certification," Working Papers 40412, CIRAD, Forest department, UPR40, revised May 2015.
    11. Malik, Muhammad Farhan & Zaman, Mahbub & Buckby, Sherrena, 2020. "Enterprise risk management and firm performance: Role of the risk committee," Journal of Contemporary Accounting and Economics, Elsevier, vol. 16(1).
    12. Alessandro Gennaro & Michelle Nietlispach, 2021. "Corporate Governance and Risk Management: Lessons (Not) Learnt from the Financial Crisis," JRFM, MDPI, vol. 14(9), pages 1-19, September.
    13. Ena Pecina & Danijela Miloš Sprčić & Ivana Dvorski Lacković, 2022. "Qualitative Analysis of Enterprise Risk Management Systems in the Largest European Electric Power Companies," Energies, MDPI, vol. 15(15), pages 1-19, July.
    14. repec:arp:tjssrr:2019:p:49-58 is not listed on IDEAS
    15. Albert Agyei & Appiah Richard Owusu, 2014. "The Effect of Ownership Structure and Corporate Governance on Capital Structure of Ghanaian Listed Manufacturing Companies," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 4(1), pages 109-118, January.
    16. Ivana Dvorski Lacković & Nataša Kurnoga & Danijela Miloš Sprčić, 2022. "Three-factor model of Enterprise Risk Management implementation: exploratory study of non-financial companies," Risk Management, Palgrave Macmillan, vol. 24(2), pages 101-122, June.
    17. Paola Leone & Carmen Gallucci & Rosalia Santulli, 2021. "How Does Corporate Governance Affect Bank Performance? The Mediating Role of Risk Governance," International Journal of Business and Management, Canadian Center of Science and Education, vol. 13(10), pages 212-212, July.
    18. Michel Magnan & Garen Markarian, 2011. "Accounting, Governance and the Crisis: Is Risk the Missing Link?," European Accounting Review, Taylor & Francis Journals, vol. 20(2), pages 215-231.
    19. Özgür ÜÞENMEZ & Levent DUMAN, 2017. "Will Secular Stagnation be the Result of Great Recession," Journal of Economics and Political Economy, KSP Journals, vol. 4(2), pages 192-202, June.
    20. Zhu, Delong & Li, Zhe & Mishra, Arunodaya Raj, 2023. "Evaluation of the critical success factors of dynamic enterprise risk management in manufacturing SMEs using an integrated fuzzy decision-making model," Technological Forecasting and Social Change, Elsevier, vol. 186(PA).
    21. Bülbül, Dilek & Lambert, Claudia, 2012. "Credit portfolio modelling and its effect on capital requirements," Discussion Papers 11/2012, Deutsche Bundesbank.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pje:journl:article27winii. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Samina Khalil (email available below). General contact details of provider: https://edirc.repec.org/data/aekarpk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.