The impact of enterprise risk management practices, quality board of directors and knowledge management on institutional performance
Loading...
Date
2019
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Universiti Teknologi Malaysia
Abstract
Nowadays, Enterprise Risk Management (ERM) is fast becoming a fundamental concern in all industries. As one of the main contributors to Malaysian economic, higher education industry seems vital and many efforts was implemented to boost this sector to worldwide. However, this industry also faced many challenges including from Private Higher Educational Institutions (PHEIs) sector. In order to survive and thrive, PHEIs is struggling with various problems that affect their performance such as management, financial crisis and marketing aspect. Adoption of ERM is able to help PHEIs in managing risk and consequently improve the performance. Thus, this research aims to develop a conceptual framework of ERM’s drivers and analyse the impact of ERM on performance among PHEIs in Malaysia. This research also studied the quality Board of Directors (BODs) as moderator and considered Knowledge Management (KM) as mediator. Using quantitative survey method, questionnaires were distributed to 510 PHEIs listed on the Ministry of Higher Education (MOHE). With top management of PHEIs as proxy, the respond rate was 43 percent. The data was then analysed using SmartPLS3.0. The findings from this research show that internal factor; Chief Risk Officer, top management, training and education including size and types of institutions affected ERM on institution’s performance. Meanwhile, external factors; law and regulation, and external auditor had no impact of ERM on institution’s performance. In addition, KM mediated the relationship between internal factor and ERM on institution’s performance. Finally, quality of BODs moderated all three drivers and ERM on institution’s performance. Based on the findings, this research implied that the implementation of ERM could not achieve better performance without the participation of BODs and KM practices within institutions. However, this research is limited to Malaysian perspective which, results may differ within other countries or sectors. Thus, it is recommended for future researcher to use samples from other countries or sectors that could enhance and enrich the research.
Description
Thesis (PhD. (Management))
Keywords
Risk management, Knowledge management—Research, Private universities and colleges—Research