Implementation of Enterprise Risk Management (ERM) and Organizational Performance: Moderating Role of Organizational Culture at State-Owned Indonesian MRO

Abstract

An economic crisis that hit the world from then until now make company need to improve their methods to anticipate and mitigate the effect. Therefore, there is not much uncertainty can be accepted by the company to still be able providing value for the stakeholders. This condition might be a challenge for management when depleting capital very quickly. Risk management is one of the plans that company need to think of to mitigate the consequences.
This research aims to analyze Enterprise Risk Management (ERM) effect to Organizational Performance in State-owned Indonesian MRO with dimension process quality, product quality, product innovation, and process innovation, and the Organizational Culture as a moderating variable.
Using partial least squares structural equation modelling (PLS-SEM), the research will examine data with respondents from risk officers, and employees who are related to the risk management process at State-owned Indonesian MRO. Finally, this research will study the impact of ERM Implementation to Organizational Performance by moderating role of the Organizational Culture.

Keywords: Aviation Industry, Enterprise Risk Management, Organizational Performance, Organizational Culture, PLS-SEM