Effects of Enterprise Risk Management (ERM) and Economic Issues on the Performance of Manufacturing Sector-SMEs in Malaysia – A Conceptual Framework
UmmuKhadijah Abdul Rauf1, JuhainiJabar2, NusaibahMansor3
1UmmuKhadijah Abdul Rauf, Centre of Technopreneurship Development (CTeD), Faculty of Technology Management and Technopreneurship, UniversitiTeknikal Malaysia, Melaka, Malaysia.
2JuhainiJabar, Centre of Technopreneurship Development (CTeD), Faculty of Technology Management and Technopreneurship, UniversitiTeknikal Malaysia, Melaka, Malaysia.
3NusaibahMansor, Centre of Technopreneurship Development (CTeD), Faculty of Technology Management and Technopreneurship, UniversitiTeknikal Malaysia, Melaka, Malaysia.
Manuscript received on 09 December 2019 | Revised Manuscript received on 23 December 2019 | Manuscript Published on 31 December 2019 | PP: 593-597 | Volume-8 Issue-12S2 October 2019 | Retrieval Number: L110710812S219/2019©BEIESP | DOI: 10.35940/ijitee.L1107.10812S219
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© The Authors. Blue Eyes Intelligence Engineering and Sciences Publication (BEIESP). This is an open-access article under the CC-BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)
Abstract: This study aims to construct a conceptual framework that describes effect of Enterprise Risk Management (ERM) on the relationship among organizational performance and economic issues. The study intended to establish whether ERM adoption and economic issues influence the performance of Small and Medium Enterprises (SMEs) as focusing in manufacturing sector. However, as compared to large businesses, small businesses became one of the highest failure rates. ERM is a form of micro risk management and a full approach to identify risk in all purposeful areas. However, based on previous studies, the study to examine the practices in adopting ERM especially in SMEs and the performance of SMEs are still lacking. Hence, the area of this paper will be focus on SMEs manufacturing which are 380 registered SMEs that listed under SME Corp. Malaysia.
Keywords: Adoption, Economic Issues, Enterprise Risk Management, Institutional Theory, Malaysia, Performance, Small Medium Enterprises.
Scope of the Article: Patterns and Frameworks