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Effect of Risk Management, Intellectual Capital on Performance of State Corporations in Kenya: Moderating Approach

Author

Listed:
  • Grace Kakiya

    (Department of Accounting and Finance, Moi University, Kenya)

  • Lucy Rono

    (Department of Accounting and Finance, Moi University, Kenya)

  • Jared Mose

    (Department of Economics and Agricultural Resource Management, Moi University, Kenya)

Abstract

Purpose: The main aim of the study was to determine the moderating effect of intellectual capital on the relationship between ERM risk structure practices and organizational performance of state corporations in Kenya. This study was guided by dynamic capabilities theory which attempts to explain the perspective of how intellectual capital and ERM practices affect organizational performance. Design/methodology/approach: The study used explanatory cross sectional survey design. Primary data on ERM risk structure practices, intellectual capital and organizational performance was collected from structured questionnaires. A survey was carried out on 218 state corporations in Kenya. The research hypothesis was tested using hierarchical regression analysis. Finding: The study found that intellectual capital had an enhancing and significant moderation effect on the relationship between ERM structure practice and organizational performance (β =.314, ρ

Suggested Citation

  • Grace Kakiya & Lucy Rono & Jared Mose, 2019. "Effect of Risk Management, Intellectual Capital on Performance of State Corporations in Kenya: Moderating Approach," International Journal of Business and Economic Sciences Applied Research (IJBESAR), International Hellenic University (IHU), Kavala Campus, Greece (formerly Eastern Macedonia and Thrace Institute of Technology - EMaTTech), vol. 12(3), pages 51-61, December.
    • Handle: RePEc:tei:journl:v:12:y:2019:i:3:p:51-61
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    References listed on IDEAS

    as
    1. Yevgen Bogodistov & Veit Wohlgemuth, 2017. "Enterprise risk management: a capability-based perspective," Journal of Risk Finance, Emerald Group Publishing Limited, vol. 18(3), pages 234-251, May.
    2. Ron Adner & Constance E. Helfat, 2003. "Corporate effects and dynamic managerial capabilities," Strategic Management Journal, Wiley Blackwell, vol. 24(10), pages 1011-1025, October.
    3. Gordon, Lawrence A. & Loeb, Martin P. & Tseng, Chih-Yang, 2009. "Enterprise risk management and firm performance: A contingency perspective," Journal of Accounting and Public Policy, Elsevier, vol. 28(4), pages 301-327, July.
    4. Nelson Waweru & Eric Kisaka, 2013. "The Effect of Enterprise Risk Management Implementation on the Value of Companies Listed on the Nairobi Stock Exchange," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 3(3), pages 1-7.
    5. Beasley, Mark S. & Clune, Richard & Hermanson, Dana R., 2005. "Enterprise risk management: An empirical analysis of factors associated with the extent of implementation," Journal of Accounting and Public Policy, Elsevier, vol. 24(6), pages 521-531.
    6. Robert E. Hoyt & Andre P. Liebenberg, 2011. "The Value of Enterprise Risk Management," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 78(4), pages 795-822, December.
    7. Constance E. Helfat & Margaret A. Peteraf, 2003. "The dynamic resource‐based view: capability lifecycles," Strategic Management Journal, Wiley Blackwell, vol. 24(10), pages 997-1010, October.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Intellectual Capital; ERM Structure Practices; Organizational Performance;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L30 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - General
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital

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