Songling Yang|Muhammad Ishtiaq|Muhammad Anwar
Enterprise Risk Management Practices and Firm Performance, the Mediating Role of Competitive Advantage and the Moderating Role of Financial Literacy
Beijing University of Technology|Beijing University of Technology|International Islamic University, Islamabad
current turbulent market firms spend lots tangible intangible resources gain competitive advantage superior performance prior studies discussed several determinants competitive advantage performance particularly developed economies whereas small mediumsized enterprises smes emerging economies received minor attention study examines mediating role competitive advantage enterprise risk management practices sme performance moderating role financial literacy enterprise risk management practices competitive advantage structured questionnaire used collect data 304 smes operating emerging market pakistan hypotheses proposed study tested structural equation modeling sem analysis moment structures amos results indicate enterprise risk management practices significantly influence competitive advantage sme performance competitive advantage partially mediates relationship enterprise risk management practices sme performance additionally financial literacy significantly moderates relationship enterprise risk management practices competitive advantage firms advised implement formal enterprise risk management practices gain competitive advantage superior performance top managers need enough financial education able perform risk management practices efficient way gain competitive position market implications practices discussed detail