Exploring the indirect links between enterprise risk management and the financial performance of SMEs

This paper responds to the lack of empirical evidence on how enterprise risk management (ERM) and financial performance small medium-sized enterprises (SMEs) are related. Structural equation modeling is used explore new mediators in relationship between ERM SME performance. The results show that organizational culture (mission dimension) strategic full positive These research highlight fact implementation an does not by itself generate expected effects without existence a mature monitoring findings particularly relevant for SMEs with “pretend ERM” lacks operational components. also helps transform negative effect foreign capital equity into effect.