The Effects of Encouragement from the Board of Directors and Enterprise Risk Management on Organizational Performance

Main Article Content

Wanlapa Thomya
Krittapha Saenchaiyathon

Abstract

This research aims to study effects of encouragement from the board of directors and of enterprise risk management on organizational performance. The samples were 265 enterprises in Thailand with stratified sampling and simple random sampling. The questionnaires were used as a tool for data collection. The collected data were analyzed using the structural equation modeling. The results showed that the encouragement from the board of directors had significant effects positively on enterprise risk management and that the enterprise risk management produced marked effects positively on organizational performance.

Article Details

How to Cite
Thomya, W., & Saenchaiyathon, K. (2016). The Effects of Encouragement from the Board of Directors and Enterprise Risk Management on Organizational Performance. WMS Journal of Management, 4(2), 19–30. Retrieved from https://so06.tci-thaijo.org/index.php/wms/article/view/52458
Section
Research Articles-Academic Articles
Author Biographies

Wanlapa Thomya

Faculty of Management Science, Khon Kaen University

Krittapha Saenchaiyathon

Faculty of Management Science, Khon Kaen University

References

กรมพัฒนาธุรกิจการค้า, กระทรวงพาณิชย์. 2554. ระบบคลังข้อมูลธุรกิจ. สืบค้นเมื่อ 7 กรกฏาคม 2556, สืบค้นจาก http://datawarehouse.dbd.go.th/bdw/ search/search2.html

ฝ่ายพัฒนาธรรมาภิบาลเพื่อตลาดทุน. 2555. หลักการกำกับดูแลกิจการที่ดี สำหรับบริษัทจดทะเบียน ปี 2555. สืบค้นเมื่อ 10 กรกฏาคม 2556, สืบค้นจาก http://www.set.or.th/th/regulations/cg/update_p1.html

ไพร้ซวอเตอร์เฮาส์คูเปอร์ส. 2547. แนวทางการบริหารความเสี่ยง: ฉบับปรับปรุง - ตุลาคม 2547. [ม.ป.ท.: ม.ป.พ.].

ศิลปพร ศรีจั่นเพชร. 2555. คณะกรรมการ: กลไกของบรรษัทภิบาล. วารสารบริหารธุรกิจ, 35(136), 1-3.

Bagozzi, R. P., Yi, Y. 1988. On the evaluation of structural equation models. Journal of the Academy of Marketing Science, 16(1), 74-94.

Beasley, M. S., Clune, R., & Hermanson, D. R. 2005. Enterprise risk management: An empirical analysis of factors associated with the extent of implementation. Journal of Accounting and Public Policy, 24(6), 521-531.

Cameron, K. 2005. Organizational effectiveness: Its demise and reemergence through positive organizational scholarship. Working paper in M. A. Hitt and K. G. Smith (Eds.) Handbook of management theory: The process of theory development. London: Oxford University Press.

Chenhall, R. H. 2007. Theorizing contingencies in management control systems research. In C. S. Chapman, A. G. Hopweed, & M. D. Shields (Eds.). Handbooks of management accounting research. (pp. 163-205). Oxford: Elsevier.

Collier, P. M. 2009. Fundamentals of risk management for accountants and managers: Tools & Techniques. Oxford: Butterworth-Heinemann.

Committee of Sponsoring Organizations of the Treadway Commission [COSO]. 2004. Enterprise risk management-Integration framwork: Executive summary. [n.p.]: COSO.

Cunliffe, A. L. 2008. Organization theory. London: SAGE Publications.

Daud, W. N. W., Yazid, A. S., & Hussin, H. M. R. 2010. The effect of chief risk officer (CRO) on enterprise risk management (ERM) practices: Evidence from Malaysia. The International Business & Economics Research Journal, 9(11), 55-64.

de Zwaan, L., Stewart, J., & Subramaniam, N. 2011. Internal audit involvement in enterprise risk management. Managerial Auditing Journal, 26(7), 586-604.

Enterprise Risk Management Committee, Casualty Actuarial Society. 2003. Overview of Enterprise Risk Management. [n.p.]: Casualty Actuarial Society.

Epstein, M. J., & Rejc, A. 2005. Identifying, measuring, and managing organizational risks for improved performance. [n.p.]: Society of Management Accountants of Canada & American Institute of Certified Public Accountants.

Gates, S., Nicolas, J. L., & Walker, P. L. 2012. Enterprise risk management: A process for enhanced management and improved performance. Management Accounting Quarterly, 13(3), 28-38.

Gordon, L. A., Loeb, M. P., & Tseng, C. Y. 2009. Enterprise risk management and firm performance: A contingency perspective. Journal of Accounting and Public Policy, 28(4), 301-327.

Gupta, P. K. 2011. Risk management in Indian companies: EWRM concerns and issues. The Journal of Risk Finance, 12(2), 121-139.

Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. 2010. Multivariate data analysis: A global perspective. 7th ed. Upper Saddle River, New Jersey: Pearson.

Henri, J. F. 2004. Performance measurement and organizational effectiveness: Bridging the gap. Managerial Finance, 30(6), 93-123.

Hoyt, R. E., & Liebenberg, A. P. 2011. The value of enterprise risk management. Journal of Risk & Insurance, 78(4), 795-822.

Institute of Risk Management [IRM]. 2002. A risk management standard. London: IRM.

Kimbrough, R. L. 2006. The relationship between perceptions of organizational culture and implementation of enterprise risk management. Doctoral dissertation, University of Alabama in Huntsville, Huntsville.

Kimbrough, R. L., & Componation, P. J. 2009. The relationship between organizational culture and enterprise risk management. Engineering Management Journal, 21(2), 18-26.

Kleffner, A. E., Lee, R. B., & McGannon, B. 2003. The effect of corporate governance on the use of enterprise risk management: Evidence from Canada. Risk Management & Insurance Review, 6(1), 53-73.

Kline, R. B. 2011. Principles and practice of structural equation modeling. 3rd ed. New York, New York: Guilford Press.

Lekmat, L. 2009. Fostering corporate entrepreneurship (CE): An examination of the relationship between CE and firm performance in auto parts manufacturing firms in Thailand. Unpublished doctoral dissertation, Swinbeurne University of Technology, Victoria, Australia.

Liebenberg, A. P., & Hoyt, R. E. 2003. The determinants of enterprise risk management: Evidence from the appointment of chief risk officers. Risk Management and Insurance Review, 6(1), 37-52.

McShane, M. K., Nair, A., & Rustambekov, E. 2011. Does enterprise risk management increase firm value?. Journal of Accounting, Auditing & Finance, 26(4), 641-658.

Meulbroek, L. K. 2002. A senior manager’s guide to integrated risk management. Journal of Applied Corporate Finance, 14(4), 56-70.

Modaff, D. P., DeWine, S., & Butler, J. A. 2008. Organizational communication: Foundations, challenges, and misunderstandings. 2nd ed. Boston: Pearson.

Muralidhar, K. 2010. Enterprise risk management in the Middle East oil industry: An empirical investigation across GCC countries. International Journal of Energy Sector Management, 4(1), 59-86.

Nocco, B. W., & Stulz, R. M. 2006. Enterprise risk management: Theory and practice. Journal of Applied Corporate Finance, 18(4), 8-20.

Pagach, D., & Warr, R. 2011. The characteristics of firms that hire chief risk officers. The Journal of Risk and Insurance, 78(1), 185-211.

Phadoongsitthi, M. 2003. The role of managerial accounting in emerging economies: An empirical study of Thailand. Doctoral dissertation, University of Maryland, College Park.

Shenkir, W. G., & Walker, P. L. 2006. Enterprise risk management: Frameworks, elements, and integration. Montvale, New Jersey: Institute of Management Accountants.

Sobel, P. J., & Reding, K. F. 2004. Aligning corporate governance with enterprise risk management. Management Accounting Quarterly, 5(2), 29-37.

Subramaniam, N., Collier, P., Phang, M., & Burke, G. 2011. The effects of perceived business uncertainty, external consultants and risk management on organisational outcomes. Journal of Accounting & Organizational Change, 7(2), 132-157.

Tahir, I. M., & Razali, A. R. 2011. The Relationship between enterprise risk managment (ERM) and firm value: Evidence from Malaysian publice listed companies. International Journal of Economics and Management Sciences, 1(2), 32-41.

Tang, C. M. 2009. The role of information systems on organisational effectiveness of companies in Malaysia. Doctoral dissertation, Multimedia University, Malaysia.