Post-covid theoretical Perspectives on Social factors for the Successful Implementation of ERM in Developing Countries’ informal SME

Abstract

Our research aims to highlight the critical factors for the success of the implementation of Risk Management in the informal SMEorganization. To this end, we establish a model, that is to say, a kind of reference framework capable of improving our knowledge of the determinants of successful implementation of ERM (enterprise risk management), on the one hand, and of guiding the companies involved in this establishment, on the other hand. Given the nature of ERM, we first study its current situation among the developing countries’ informal SME (small and medium enterprise) to determine the critical difficulty of the its implementation and reflect on the next stage of the research. The results lead us to adopt a systems approach; that allowed us to: conceptualize the issues associated with the establishment of the ERM as a whole in the sense of identifying the elements and their attributes; to determine the relationships between this elements, and consider the complexities of integrated risk management promoted by ERM through the social aspect of the organization. As a general theoretical framework, we used socio-technical theory, which oriented our thinking towards constructs like strategic framework, employee involvement, support from management, structural arrangement and organizational climate, on the social side; Our research approach is exploratory with a correlational study design and survey research.We reduced the data using exploratory factor analysis. For the proper statistical modeling, we used structural equations by the partial least squares method. For this, we used the SmartPLS software and SPSS.The results are satisfactory and have allowed us to detect problems in the operationalization of certain constructs, validate some of the hypotheses, and to draw conclusions, which we have broken down at the beginning. These results also showed us that other factors could be considered, and others that are not necessary to consider in such a student intern.