Does enterprise risk management influence performance? Evidence from Malaysian private higher education institutions
List of Authors
  • Ai Ping, Teoh , Tze Yin, Khaw

Keyword
  • Performance, enterprise risk management, private higher education institutions, Malaysia

Abstract
  • Private Higher Education Institutions (PHEIs) play an important role in the country’s growth and development. However, the SARS-CoV-2 pandemic has shut about 60 private higher education institutions (PHEIs) in the year 2020 (Azman, 2021). For firms to attain excellent organisational performance, enterprise risk management (ERM) is viewed as a critical requirement. This study aims to examine the roles of enterprise risk management on the performance of private higher education institutions in Malaysia from customer perspectives, financial perspectives, internal processes perspectives and learning and growth perspectives. To evaluate the hypotheses, data is collected from PHEIs in Malaysia using an online survey questionnaire. Structural equation modelling software SmartPLS 3.3.9 is used to analyse the 186 valid responses received. This empirical research discovers that ERM has positive and significant impact on financial perspective performance, customer-focused perspective performance, internal processes performance and learning and growth perspective performance of PHEIs in Malaysia. The findings contribute to the advancement of the resource-based view (RBV) theory. Practitioners of PHEIs will understand how to maximise the resources and skills to improve ERM that eventually drive the performance of their institution.

Reference
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