IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v16y2024i5p2094-d1350313.html
   My bibliography  Save this article

Management of Strategic Risks for the Sustainability of SMEs in the Manufacturing Sector in Antioquia

Author

Listed:
  • Andrea Jiménez

    (School of Management, Universidad EAFIT, Medellin 050022, Colombia)

  • Yennifer Arrieta

    (School of Management, Universidad EAFIT, Medellin 050022, Colombia)

  • Maria Antonia Nuñez

    (School of Management, Universidad EAFIT, Medellin 050022, Colombia)

  • Eduart Villanueva

    (School of Management, Universidad EAFIT, Medellin 050022, Colombia)

Abstract

Strategic risk management impacts organizations’ competitive advantage; it is an opportunity for growth, anticipation, and sustainability. Small and medium-sized enterprises (SMEs) are significantly exposed to these risks and are a fundamental part of the current business fabric. This research aims to analyze the management of strategic risks for the sustainability of SMEs in the manufacturing sector in Antioquia. A qualitative methodology was used for the development, and ten semi-structured interviews were conducted with managers of the selected SMEs. The results show that strategic risk management contributes to the sustainability of SMEs across economic, social, and environmental pillars. The strategic risks most frequently mentioned as priorities for sustainability include long-term risks associated with strategy formulation and definition, as well as the value proposition. Additionally, the risk of human talent management, which is present in all analyzed organizations, was highlighted. Based on the research, interested organizations can be recommended to implement processes and practices associated with strategic risk management for sustainability. The research presents a significant novelty by specifically addressing the management of strategic risks for the sustainability of SMEs in the manufacturing sector. Unlike previous research, our study focuses on the specific risk management practices of SMEs in this geographical context, adding an important regional and sectoral dimension to the field of study.

Suggested Citation

  • Andrea Jiménez & Yennifer Arrieta & Maria Antonia Nuñez & Eduart Villanueva, 2024. "Management of Strategic Risks for the Sustainability of SMEs in the Manufacturing Sector in Antioquia," Sustainability, MDPI, vol. 16(5), pages 1-21, March.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:5:p:2094-:d:1350313
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/16/5/2094/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/16/5/2094/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Danquah Jeff Boakye & Ishmael TIngbani & Gabriel Ahinful & Isaac Damoah & Venancio Tauringana, 2020. "Sustainable environmental practices and financial performance: Evidence from listed small and medium‐sized enterprise in the United Kingdom," Business Strategy and the Environment, Wiley Blackwell, vol. 29(6), pages 2583-2602, September.
    2. Joseph Bakos & Michele Siu & Adalberto Orengo & Narges Kasiri, 2020. "An analysis of environmental sustainability in small & medium‐sized enterprises: Patterns and trends," Business Strategy and the Environment, Wiley Blackwell, vol. 29(3), pages 1285-1296, March.
    3. Slagmulder, Regine & Devoldere, Bart, 2018. "Transforming under deep uncertainty: A strategic perspective on risk management," Business Horizons, Elsevier, vol. 61(5), pages 733-743.
    4. Beasley, Mark S. & Clune, Richard & Hermanson, Dana R., 2005. "Enterprise risk management: An empirical analysis of factors associated with the extent of implementation," Journal of Accounting and Public Policy, Elsevier, vol. 24(6), pages 521-531.
    5. Jean-Marie Courrent & Sonia Chassé & Waleed Omri, 2018. "Do Entrepreneurial SMEs Perform Better Because They are More Responsible?," Journal of Business Ethics, Springer, vol. 153(2), pages 317-336, December.
    6. Singh, Neelam & Jain, Suresh & Sharma, Prateek, 2015. "Motivations for implementing environmental management practices in Indian industries," Ecological Economics, Elsevier, vol. 109(C), pages 1-8.
    7. Robert E. Hoyt & Andre P. Liebenberg, 2011. "The Value of Enterprise Risk Management," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 78(4), pages 795-822, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Li, Yongjian & Zhen, Xueping & Qi, Xiangtong & Cai, Gangshu (George), 2016. "Penalty and financial assistance in a supply chain with supply disruption," Omega, Elsevier, vol. 61(C), pages 167-181.
    2. José Ruiz-Canela López, 2021. "How Can Enterprise Risk Management Help in Evaluating the Operational Risks for a Telecommunications Company?," JRFM, MDPI, vol. 14(3), pages 1-26, March.
    3. Elisabetta Mafrolla & Felice Matozza, 2014. "Risk management and firm size: a survey of Italian private companies," MANAGEMENT CONTROL, FrancoAngeli Editore, vol. 2014(3), pages 87-108.
    4. Heidinger, Dinah & Gatzert, Nadine, 2018. "Awareness, determinants and value of reputation risk management: Empirical evidence from the banking and insurance industry," Journal of Banking & Finance, Elsevier, vol. 91(C), pages 106-118.
    5. Carmen Nadia Ciocoiu & Adina Liliana Prioteasa & Sofia Elena Colesca, 2020. "Risk Management Implementation for Sustainable Development of Romanian SMEs: A Fuzzy Approach ...........," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 22(55), pages 726-726, August.
    6. Eduart Villanueva & María Antonia Nuñez & Izaias Martins, 2022. "Impact Of Risk Governance, Associated Practices and Tools on Enterprise Risk Management: Some Evidence from Colombia," Revista Finanzas y Politica Economica, Universidad Católica de Colombia, vol. 14(1), pages 187-206, January.
    7. Yongrok Choi & Xiaoxia Ye & Lu Zhao & Amanda C. Luo, 2016. "Optimizing enterprise risk management: a literature review and critical analysis of the work of Wu and Olson," Annals of Operations Research, Springer, vol. 237(1), pages 281-300, February.
    8. Eckles, David L. & Hoyt, Robert E. & Miller, Steve M., 2014. "Reprint of: The impact of enterprise risk management on the marginal cost of reducing risk: Evidence from the insurance industry," Journal of Banking & Finance, Elsevier, vol. 49(C), pages 409-423.
    9. Ivana Dvorski Lacković & Nataša Kurnoga & Danijela Miloš Sprčić, 2022. "Three-factor model of Enterprise Risk Management implementation: exploratory study of non-financial companies," Risk Management, Palgrave Macmillan, vol. 24(2), pages 101-122, June.
    10. Milos Sprcic, Danijela & Pecina, Ena & Orsag, Silvije, 2017. "Enterprise Risk Management Practices In Listed Croatian Companies," UTMS Journal of Economics, University of Tourism and Management, Skopje, Macedonia, vol. 8(3), pages 219-230.
    11. Chris O Udoka & Akaninyene Billy Orok, 2017. "Assessment of the Enterprise Risk Management (ERM) in the Nigerian Banking Industry," Asian Journal of Economics and Empirical Research, Asian Online Journal Publishing Group, vol. 4(2), pages 68-74.
    12. Clara Pérez-Cornejo & Esther de Quevedo-Puente, 2023. "How corporate social responsibility mediates the relationship between corporate reputation and enterprise risk management: evidence from Spain," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 13(2), pages 363-383, June.
    13. Zhu, Delong & Li, Zhe & Mishra, Arunodaya Raj, 2023. "Evaluation of the critical success factors of dynamic enterprise risk management in manufacturing SMEs using an integrated fuzzy decision-making model," Technological Forecasting and Social Change, Elsevier, vol. 186(PA).
    14. Enzo Bivona, 2019. "Sistema di Controllo Interno e prevenzione delle infiltrazioni della criminalit? organizzata," MANAGEMENT CONTROL, FrancoAngeli Editore, vol. 2019(1 suppl.), pages 51-68.
    15. Alessandra Allini & Raffaela Casciello & Marco Maffei & Martina Prisco, 2022. "The national culture as a determinant of ERM quality: Empirical evidence in the European banking context," MANAGEMENT CONTROL, FrancoAngeli Editore, vol. 2022(1), pages 79-102.
    16. Farrell, Mark & Gallagher, Ronan, 2019. "Moderating influences on the ERM maturity-performance relationship," Research in International Business and Finance, Elsevier, vol. 47(C), pages 616-628.
    17. Naciye Sekerci & Don Pagach, 2020. "Firm Ownership and Enterprise Risk Management Implementation: Evidence from the Nordic Region," JRFM, MDPI, vol. 13(9), pages 1-21, September.
    18. Olayinka Adedayo Erin & Adebola Daniel Kolawole & Abdurafiu Olaiya Noah, 2020. "Risk governance and cybercrime: the hierarchical regression approach," Future Business Journal, Springer, vol. 6(1), pages 1-15, December.
    19. Grace Kakiya & Lucy Rono & Jared Mose, 2019. "Effect of Risk Management, Intellectual Capital on Performance of State Corporations in Kenya: Moderating Approach," International Journal of Business and Economic Sciences Applied Research (IJBESAR), International Hellenic University (IHU), Kavala Campus, Greece (formerly Eastern Macedonia and Thrace Institute of Technology - EMaTTech), vol. 12(3), pages 51-61, December.
    20. Therese R. Viscelli & Mark S. Beasley & Dana R. Hermanson, 2016. "Research Insights About Risk Governance," SAGE Open, , vol. 6(4), pages 21582440166, November.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:16:y:2024:i:5:p:2094-:d:1350313. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.