Dr. Budi Chandra
Director/ Lecturer
PT Cahaya Amadis,
Universitas Internasional Batam,
Indonesia
Email: [email protected]
The Role of Enterprise Risk Management in enhancing Firm Performance: does Strategic
Renewal really matters?
Abstract — This study aims to measure the impact of enterprise risk management (ERM) to
improve firm performance in manufacturing companies in Indonesia. This study also examines
the role of strategic renewal in ERM’s influence on firm performance. The AMOS applicaHon’s
SEM analysis technique was used to evaluate the research model used in this study. Data from
207 different firms in Indonesia’s manufacturing sector were obtained. The originality of this
research is adding strategic renewal as a mediaHng variable that has not been widely used in
previous research in analysing the relaHonship between the ERM and firm performance. The
study’s results show empirical evidence that internal resources in the form of ERM significantly
affect firm performance. AddiHonally, according to the research findings, strategic renewal is the
best way for businesses to deal with environmental uncertainty and dynamic changes. Companies
are expected to have adequate resources, but they also need to make changes and implement
strategies to turn those resources into beQer performance.
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