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Does culture influence the implementation of Enterprise Risk Management?

Andersson, Sofie LU and Langhans, Stefanie LU (2016) BUSN89 20161
Department of Business Administration
Abstract
The primary purpose of this study is to investigate if culture influences a
firm’s decision to implement enterprise risk management (ERM). It will
examine which factors influence this decision on a worldwide level, how
ERM implementation varies across countries and to what extent these
differences are influenced by cultural dimensions. The study is based on 380 firm observations from 19 countries. ERM implementation is examined with a keyword search on annual reports and culture is measured with Hofstede’s dimensions power distance, uncertainty avoidance and individualism. This study supports that culture has an influence on ERM implementation which shows that culture has to be taken into account when analysing and comparing ERM... (More)
The primary purpose of this study is to investigate if culture influences a
firm’s decision to implement enterprise risk management (ERM). It will
examine which factors influence this decision on a worldwide level, how
ERM implementation varies across countries and to what extent these
differences are influenced by cultural dimensions. The study is based on 380 firm observations from 19 countries. ERM implementation is examined with a keyword search on annual reports and culture is measured with Hofstede’s dimensions power distance, uncertainty avoidance and individualism. This study supports that culture has an influence on ERM implementation which shows that culture has to be taken into account when analysing and comparing ERM implementation across countries. Furthermore, this worldwide sample allows to compare ERM variation between the observed countries and it shows that influences which have been examined on a country-level can also be found on a worldwide-level. (Less)
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author
Andersson, Sofie LU and Langhans, Stefanie LU
supervisor
organization
course
BUSN89 20161
year
type
H1 - Master's Degree (One Year)
subject
keywords
Enterprise risk management, ERM implementation, cultural influence, cultural dimension, power distance, uncertainty avoidance, individualism
language
English
id
8886906
date added to LUP
2016-08-22 12:43:06
date last changed
2016-08-22 12:43:06
@misc{8886906,
  abstract     = {The primary purpose of this study is to investigate if culture influences a
firm’s decision to implement enterprise risk management (ERM). It will
examine which factors influence this decision on a worldwide level, how
ERM implementation varies across countries and to what extent these
differences are influenced by cultural dimensions. The study is based on 380 firm observations from 19 countries. ERM implementation is examined with a keyword search on annual reports and culture is measured with Hofstede’s dimensions power distance, uncertainty avoidance and individualism. This study supports that culture has an influence on ERM implementation which shows that culture has to be taken into account when analysing and comparing ERM implementation across countries. Furthermore, this worldwide sample allows to compare ERM variation between the observed countries and it shows that influences which have been examined on a country-level can also be found on a worldwide-level.},
  author       = {Andersson, Sofie and Langhans, Stefanie},
  keyword      = {Enterprise risk management,ERM implementation,cultural influence,cultural dimension,power distance,uncertainty avoidance,individualism},
  language     = {eng},
  note         = {Student Paper},
  title        = {Does culture influence the implementation of Enterprise Risk Management?},
  year         = {2016},
}