Search results

This research aims to examine the moderating role of the existence of risk management committee between risk-taking behavior and companies’ performance.

Research sample includes 383 manufacturing company-year that listed on the Indonesian Stock Exchange period of 2017–2020. The risk-taking behavior includes the use of leverage, capital intensity, research and development intensity, and earnings uncertainty. The hypothesis test uses company fixed-effect regression.

The result shows that risk management committee moderates the effect of risk-taking behavior on companies’ performance. This research also finds the similar result when risk management committee and risk-taking behavior are examined on the future performance. In the further analysis, the result also finds that the expertise of risk management committee moderates the effect of risk-taking behavior on companies’ performance.

This research contributes to fill the previous gap of risk-taking behavior and companies’ performance by considering the existence of risk management committee to promote oversight role on risk-taking behavior. This research also contributes to give new evidence in Indonesia about the role of risk management committee to improve the benefits or to reduce the costs of risk-taking behavior.

This research objective is to (1) examine the effect of organizational factors on quality performance, (2) examine the effect of quality performance on competitive advantage and (3) examine the mediating role of quality performance between organizational factors and competitive advantage.

The research sample includes 140 employees in the Windusari village-owned enterprise, in Magelang, Indonesia. Data are collected using 5-Likert scale questionnaires which follow Ferdousi et al. (2019). The dependent variable is a competitive advantage. The Independent variable is organizational factors which are top management support, employee empowerment, employee involvement, reward and recognition, training and customer focus. The mediating variable is quality performance. Data analysis uses path analysis provided by structural equation modeling.

Based on path analysis, organizational factors have a positive effect on quality performance, quality performance has a positive effect on competitive advantage and quality performance mediates the effect of organizational factors on competitive advantage. The results confirm the concept of quality management where continuous improvement of products and services can meet customer expectations and bring the organization to a better position in the industry to face other competitors.

This research extends the previous studies of the relationship between organizational factors and organizational outcomes by considering the effectiveness of the organizational process. This research also contributes to giving new evidence about the relationship between organizational factors, quality management and competitive advantage in the village-owned enterprise in Magelang, Indonesia. This research also contributes to updating the literature on the theory of quality management.