Journal article
An analysis of the combined effects of advanced information technologies and enterprise risk management on organizational performance
Management research review, pp 1-22
18 Sep 2026
Abstract
Purpose-This study aims to investigate the combined effects of advanced information technologies that include data analytics, enterprise resource planning (ERP) and the Internet of Things (IoT) and enterprise risk management (ERM) on organizational performance, with a specific focus on profitability across various industries. Design/methodology/approach-The research uses a random effects panel regression model to estimate the impact of capital, labor and other independent variables (i.e. ERM maturity, ERP adoption, IoT use and data analytics) on gross profit. The study uses data collected from 88 Fortune 1,000 companies, yielding 853 firm-year observations across an unbalanced panel spanning 3-10 years. Panel data modeling techniques ensure robust analysis by accounting for firm-specific heterogeneity and temporal variation. Other data sources include Google searches, third-party data vendors and specialized data collection websites. Findings-The findings indicate a positive association between the use of advanced information technologies and organizational performance. Specifically, data analytics and IoT significantly enhance the effectiveness of ERM, leading to improved profitability. The results are particularly pronounced in information technology-intensive industries, whereas manufacturing and financial services show mixed outcomes. The study highlights that frequent ERM activities and advanced data analytics capabilities are critical drivers of better performance. Research limitations/implications-There may be additional factors that the authors did not get to explore that might increase the effectiveness of ERM programs, such as Generative AI. In addition, the authors would have liked to obtain more qualitative information about the interactions of advanced technologies with ERM programs and processes. Originality/value-This study contributes to the literature by providing a comprehensive model that integrates ERM practices with advanced information technologies. It underscores the importance of technological advancements in enhancing ERM's impact on performance. The research also provides a framework for assessing ERM maturity and frequency, offering practical insights for organizations aiming to leverage technology for improved risk management and organizational outcomes.
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Details
- Title
- An analysis of the combined effects of advanced information technologies and enterprise risk management on organizational performance
- Creators
- LaVern Miles - Drexel UniversityBay Arinze (Corresponding Author) - Drexel UniversityDavid Gefen - Drexel University
- Publication Details
- Management research review, pp 1-22
- Publisher
- Emerald Group Publishing
- Number of pages
- 22
- Resource Type
- Journal article
- Language
- English
- Academic Unit
- Decision Sciences (and Management Information Systems)
- Web of Science ID
- WOS:001876207100001
- Scopus ID
- 2-s2.0-105051109897
- Other Identifier
- 991022234728504721