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Enhancing Success of SMES Through Risk Enterprise Management: Evidence From A Developing Country

Author

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  • Blessward JENYA*
  • Maxwell SANDADA*

Abstract

Owing to the lack of literature on risk management practice in Zimbabwe, the study sought to close the gap by investigating the impact of main dimensions of the enterprise risk management on Small and Medium Enterprises (SME) performance. A quantitative research study was carried out by sending the structured questionnaire to (randomly selected) 150 SMEs located in Harare. The data was analysed by correlation and regression analyses. The study provides evidence of positive relationship between risk management dimensions and the SME performance. The findings would provide invaluable insights into SME management on how to effectively manage the risk for their sustainability.

Suggested Citation

  • Blessward JENYA* & Maxwell SANDADA*, 2017. "Enhancing Success of SMES Through Risk Enterprise Management: Evidence From A Developing Country," Pakistan Journal of Applied Economics, Applied Economics Research Centre, vol. 27(2), pages 173-188.
    • Handle: RePEc:pje:journl:article27winii
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    References listed on IDEAS

    as
    1. Brian W. Nocco & René M. Stulz, 2006. "Enterprise Risk Management: Theory and Practice," Journal of Applied Corporate Finance, Morgan Stanley, vol. 18(4), pages 8-20, September.
    2. Bartelsman, Eric J. & Beetsma, Roel M. W. J., 2003. "Why pay more? Corporate tax avoidance through transfer pricing in OECD countries," Journal of Public Economics, Elsevier, vol. 87(9-10), pages 2225-2252, September.
    3. Leen Paape & Roland F. Spekl�, 2012. "The Adoption and Design of Enterprise Risk Management Practices: An Empirical Study," European Accounting Review, Taylor & Francis Journals, vol. 21(3), pages 533-564, January.
    4. Jensen, Michael C. & Meckling, William H., 1976. "Theory of the firm: Managerial behavior, agency costs and ownership structure," Journal of Financial Economics, Elsevier, vol. 3(4), pages 305-360, October.
    5. William Lang & Julapa Jagtiani, 2010. "The Mortgage and Financial Crises: The Role of Credit Risk Management and Corporate Governance," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 38(3), pages 295-316, September.
    6. AfDB AfDB, . "Annual Report 2012," Annual Report, African Development Bank, number 461.
    7. Thomas Henschel, 2006. "Risk management practices in German SMEs: an empirical investigation," International Journal of Entrepreneurship and Small Business, Inderscience Enterprises Ltd, vol. 3(5), pages 554-571.
    8. Lang, William W. & Jagtiani, Julapa, 2010. "The Mortgage Financial Crises: The Role of Credit Risk Management and Corporate Governance," Working Papers 10-12, University of Pennsylvania, Wharton School, Weiss Center.
    9. Verbeeten, Frank H.M. & Boons, Arnick N.A.M., 2009. "Strategic priorities, performance measures and performance: an empirical analysis in Dutch firms," European Management Journal, Elsevier, vol. 27(2), pages 113-128, April.
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    Cited by:

    1. Kafigi Jeje, 2020. "Risk-Taking and Performance of Small and Medium-Sized Enterprises: Lessons from Tanzanian Bakeries," Journal of Economics and Behavioral Studies, AMH International, vol. 12(3), pages 1-22.
    2. Lenka Syrová & Jindřich Špička, 2023. "Exploring the indirect links between enterprise risk management and the financial performance of SMEs," Risk Management, Palgrave Macmillan, vol. 25(1), pages 1-27, March.

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