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The Impact of Enterprise Risk Management on Firm Competitiveness: The Mediating Role of Competitive Advantage in the Omani Insurance Industry

Author

Listed:
  • Ammar Al Lawati

    (College of Graduate Studies, Universiti Tenaga Nasional, Kajang 43000, Malaysia)

  • Baharuddin M. Hussin

    (UNITEN Business School, Universiti Tenaga Nasional, Kajang 43000, Malaysia)

  • Mohd Rizuan Abdul Kadir

    (College of Graduate Studies, Universiti Tenaga Nasional, Kajang 43000, Malaysia)

  • Mohamed Khudari

    (College of Graduate Studies, Universiti Tenaga Nasional, Kajang 43000, Malaysia)

Abstract

In today’s complex economy, firms face various risks. The increasing risks and exposures hinder top performance and impede investments in new project circles. This study examines how Enterprise Risk Management (ERM) practices affect the non-financial performance of Omani insurance companies and investigates the partial mediating role of Competitive Advantage (CA). Using 439 survey responses analysed with PLS-SEM, the results reveal that ERM practices have a positive and significant effect on non-financial performance, and that CA mediates the effects of Internal Environment, Event Identification, and Risk Assessment. This reinforces the strategic dimension of embedding competitive advantage into risk management frameworks. This study offers evidence of how integrating ERM practices can impact organisational performance. It provides a foundation for ongoing research in sectors and areas not previously examined, particularly in developing countries where organisational resilience is imperative. Our study demonstrates how ERM enhances non-financial performance within insurance companies while supporting the view that ERM is a long-term strategic element, not merely limited to risk management. The research contributes evidence for broader application by demonstrating competitive advantage as a mediator. The model facilitates the investigation of ERM impacts across various sectors and regions, especially in developing countries where organisational resilience is crucial.

Suggested Citation

  • Ammar Al Lawati & Baharuddin M. Hussin & Mohd Rizuan Abdul Kadir & Mohamed Khudari, 2025. "The Impact of Enterprise Risk Management on Firm Competitiveness: The Mediating Role of Competitive Advantage in the Omani Insurance Industry," Risks, MDPI, vol. 13(10), pages 1-26, October.
    • Handle: RePEc:gam:jrisks:v:13:y:2025:i:10:p:199-:d:1769723
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    References listed on IDEAS

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    1. Abol Jalilvand & Sidharth Moorthy, 2023. "Triangulating Risk Profile and Risk Assessment: A Case Study of Implementing Enterprise Risk Management System," JRFM, MDPI, vol. 16(11), pages 1-17, November.
    2. Malik, Muhammad Farhan & Zaman, Mahbub & Buckby, Sherrena, 2020. "Enterprise risk management and firm performance: Role of the risk committee," Journal of Contemporary Accounting and Economics, Elsevier, vol. 16(1).
    3. Romina Cheraghalizadeh & Hossein Olya & Mustafa Tumer, 2021. "The Effects of External and Internal Factors on Competitive Advantage—Moderation of Market Dynamism and Mediation of Customer Relationship Building," Sustainability, MDPI, vol. 13(7), pages 1-15, April.
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