Enterprise risk management and firm performance: Exploring the roles of knowledge, technology, and supply chain

Risk management has become crucial for organizations in the current era. Therefore, this study assesses the impact of Enterprise Risk Management (ERM) on an organization’s performance and examines how knowledge management and technology adoption mediate this impact, along with the moderating effect of supply chain resilience based on the resource-based view and dynamic capabilities theory. Utilizing a questionnaire-based survey, data were collected from 297 respondents in Ho Chi Minh City, Binh Duong, and Dong Nai, Vietnam, by cluster random sampling. The data were statistically analyzed using the partial least squares method. The results indicated a positive effect of ERM on financial performance, while the association with non-financial performance lacked significance. Knowledge management and technology adoption fully mediated the positive impact of ERM on non-financial performance and partially mediated its relationship with financial performance. Furthermore, supply chain resilience strengthened the positive link between ERM and financial performance. In conclusion, these findings contribute to advancing the comprehension of the mechanisms and dynamics involved in knowledge management and technology adoption as mediators and supply chain resilience as a moderator, regarding an emerging country. The study enriches the risk management literature and significantly contributes to enhancing firm effectiveness.