Enterprise risk management and organizational performance: exploring mediation effects of entrepreneurial orientation

This study presents a conceptual model of mediation effects that Entrepreneurial Orientation (EO) has on relationship between Enterprise Risk Management (ERM) and organizational performance. Empirical evidence suggests a very limited scope of ERM relation to performance, but full mediation effect of EO dimension innovation and proactivity is confirmed on relation between ERM strategic factor and new product development. Our research contributes scientifically because it is the first research that explores how ERM and EO interwind in companies. From the practical point of view, our results may be valuable to managers aiming to increase company’s resilience by introducing innovation or are in the process of encouraging a more proactive behaviour. According to our findings, they may benefit from establishment of a sound ERM strategic framework prior to entering innovation or proactivity process, in terms of new product development.