The Role of KM on the Relationship Between ERM and CA

https://doi.org/10.35912/rambis.v5i1.3719
Published: Jun 4, 2025

Abstract:

Purpose: This study explores the critical role of Knowledge Management (KM) in mediating and moderating the relationship between Enterprise Risk Management (ERM) and Competitive Advantage (CA).

Methodology: This paper synthesizes existing research through a literature review of studies focusing on KM, ERM, and CA.

Result: The research reveals that KM strengthens ERM's ability to manage risk by improving decision-making processes and enhancing organizational responsiveness to risks.

Conclusions: Knowledge Management (KM) strengthens Enterprise Risk Management (ERM) and supports Corporate Advantage (CA) by improving decision-making, fostering innovation, and enhancing adaptability. KM acts as both a moderator and mediator, aligning risk strategies with business goals. As key intangible assets, KM and ERM help firms stay competitive. In high-risk sectors, integrated KM-ERM boosts responsiveness and performance, though challenges like silos and staff gaps require better communication and systems.

Limitations: The study's limitation lies in its review nature, relying on secondary data from existing literature.

Contribution: This study contributes to knowledge management, risk management, and strategic management by providing insights into how organizations can leverage KM to enhance risk management practices and gain a competitive edge. It provides practical recommendations for organizations aiming to integrate KM within their ERM strategies for better decision making and risk handling.

Keywords:
1. competitive advantage
2. Decision-Making
3. Enterprise Risk Management
4. Knowledge Management
5. Strategic Management
Authors:
1 . Matias Andika Yuwono
2 . Lena Ellitan
View PDF
How to Cite
Yuwono, M. A., & Ellitan, L. (2025). The Role of KM on the Relationship Between ERM and CA. Reviu Akuntansi, Manajemen, Dan Bisnis, 5(1), 33–46. https://doi.org/10.35912/rambis.v5i1.3719
Download Citation
  1. Endnote/Zotero/Mendeley (RIS)
  2. BibTeX

Downloads

Download data is not yet available.
Issue & Section
Vol. 5 No. 1 (2025): Juni
Articles
Creative Commons License

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

References

    Abaoud, D. (2019). The Relationship Between Knowledge Management Practices And Enterprise Risk Management In Higher Education: An Action Research. Proceedings of the 27th European Conference on Information Systems (ECIS). Https://aisel.aisnet.org/ecis2019_rp

    Ahmed, Md. A., & Rozario, K. P. (2024). Impact of off-balance sheet activities on bank profitability: Evidence from Bangladesh. International Journal of Financial, Accounting, and Management, 6(2), 283–299. Https://doi.org/10.35912/ijfam.v6i2.2510

    Alazzabi, W. Y. E., Mustafa, H., & Karage, A. I. (2023). Risk management, top management support, internal audit activities and fraud mitigation. Journal of Financial Crime, 30(2), 569–582. Https://doi.org/10.1108/JFC-11-2019-0147

    Arfiansyah, Z. (2021). The Effect Of Enterprise Risk Management, Knowledge Management, And Organizational Culture On Organizational Resilience. International Journal of Contemporary Accounting, 3(2), 93–114. Https://doi.org/10.25105/ijca.v3i2.9227

    Aryista Dewi, A., Saraswati, E., Fuad Rahman, A., & Atmini, S. (2024). Moderating role of enterprise risk management in the relationship between sustainability performance and a firm’s competitive advantage. Problems and Perspectives in Management, 22(2), 226–239. Https://doi.org/10.21511/ppm.22(2).2024.18

    Bandaly, D., Shanker, L., Kahyaoglu, Y., & Satir, A. (2013). Supply chain risk management-II: A review of operational, financial and integrated approaches. Risk Management, 15(1), 1–31. Https://doi.org/10.1057/rm.2012.8

    Cahyani Pangestuti, D., Muktiyanto, A., Geraldina, I., & Darmawan, D. (2024). Optimizing firm performance through contingency factors, enterprise risk management, and intellectual capital in Southeast Asian mining enterprises. Investment Management and Financial Innovations, 21(2), 355–369. Https://doi.org/10.21511/imfi.21(2).2024.29

    Chan, J. O. (2014). Integrating Knowledge Management and Relationship Management in an Enterprise Environment. Communications of the IIMA, 9(4). Https://doi.org/10.58729/1941-6687.1120

    Davies, M., & Snyder, D. V. (2014). International Transactions in Goods: Global Sales in Comparative Context. In International Transactions in Goods: Global Sales in Comparative Context. Https://doi.org/10.1093/acprof:oso/9780195388183.001.0001

    Fallahi, F., Ibenrissoul, A., & EL AMRI, A. (2022). Does Innovation Play a Role in the Relationship Between Corporate Social and Financial Performance? A Systematic Literature Review. International Journal of Financial, Accounting, and Management, 4(3), 315–334. Https://doi.org/10.35912/ijfam.v4i3.1146

    Firman, M. S. K., & Khudri, T. M. Y. (2025). Analysis of the internal control system in gas stations. International Journal of Financial, Accounting, and Management, 6(4), 477–493. Https://doi.org/10.35912/ijfam.v6i4.2186

    Garba, M., Salleh, F., Hafiz, U. A., & Bakar, N. M. A. (2022). Insurance Literacy, Risk Knowledge Management, Risk-Taking Propensity And Economic Sustainability Among SMEs: The Moderating Effect Of Financial Inclusion. Journal of Social Economics Research, 9(2), 92–110. Https://doi.org/10.18488/35.v9i2.3120

    Handijono, A., & Suhatman, Z. (2021). Closed-Loop Knowledge Risk Management in IT Company. Jurnal Informatika Universitas Pamulang, 6(2), 2622–4615. Https://doi.org/10.32493/informatika.v6i2.10479

    Heckmann, I., Comes, T., & Nickel, S. (2015). A critical review on supply chain risk - Definition, measure and modeling. Omega (United Kingdom), 52, 119–132. Https://doi.org/10.1016/j.omega.2014.10.004

    Huemer, L. (2012). Unchained from the chain: Supply management from a logistics service provider perspective. Journal of Business Research, 65(2), 258–264. Https://doi.org/10.1016/j.jbusres.2011.05.028

    King, J. Y., Shun, H. C., & Ching, C. Y. (2020). Establishment and applications of quality management system for service industries. International Journal of Financial, Accounting, and Management, 1(4). Https://doi.org/10.35912/ijfam.v1i4.151

    Lam, J. S. L., & Zhang, L. (2014). Enhanced logistics service provider framework for higher integration and efficiency in maritime logistics. International Journal of Logistics Research and Applications, 17(2), 89–113. Https://doi.org/10.1080/13675567.2013.836161

    Lam, L., Nguyen, P., Le, N., & Tran, K. (2021). The Relation among Organizational Culture, Knowledge Management, and Innovation Capability: Its Implication for Open Innovation. Journal of Open Innovation: Technology, Market, and Complexity, 7(1), 66. Https://doi.org/10.3390/joitmc7010066

    Manab, N. A., & Aziz, N. A. A. (2019). Integrating knowledge management in sustainability risk management practices for company survival. Management Science Letters, 9(4), 585–594. Https://doi.org/10.5267/j.msl.2019.1.004

    Mårtensson, M. (2000). A critical review of knowledge management as a management tool. Journal of Knowledge Management, 4(3), 204–216. Https://doi.org/10.1108/13673270010350002

    Neef, D. (2005). Managing corporate risk through better knowledge management. In The Learning Organization (Vol. 12, Issue 2, pp. 112–124). Https://doi.org/10.1108/09696470510583502

    Nwankpa, J. K., & Datta, P. (2017). Balancing exploration and exploitation of IT resources: The influence of Digital Business Intensity on perceived organizational performance. European Journal of Information Systems, 26(5), 469–488. Https://doi.org/10.1057/s41303-017-0049-y

    Ongkosongo, A. D., & Wijayanti, N. (2025). Improve resiliency through operational risk management: Case study in coffee shop ABC. International Journal of Financial, Accounting, and Management, 6(3), 431–443. Https://doi.org/10.35912/ijfam.v6i3.2176

    Permatasari, I. (2020). Does corporate governance affect bank risk management? Case study of Indonesian banks. International Trade, Politics and Development, 4(2), 127–139. Https://doi.org/10.1108/ITPD-05-2020-0063

    Plessis, M. du. (2019). The role of knowledge management in innovation. Journal of Knowledge Management, 20.

    Purnama, C., & Puspitowati, I. (2024). Inovasi Produk sebagai Mediator Knowledge Management terhadap Competitive Advantage Coffee Shop. Jurnal Manajerial Dan Kewirausahaan, 6(3), 663–671. Https://doi.org/10.24912/jmk.v6i3.31599

    Rodriguez, E., & Edwards, John. (2014). Knowledge management in support of Enterprise Risk Management. International Journal of Knowledge Management, 10(2), 43–61. Https://doi.org/10.4018/ijkm.2014040104

    Rodriguez, E., & Steven Edwards, J. (2009). Knowledge management and enterprise risk management implementation in financial services. Https://www.researchgate.net/publication/41116552

    Romanosky, S., & Petrun Sayers, E. L. (2023). Enterprise risk management: how do firms integrate cyber risk? Management Research Review. Https://doi.org/10.1108/MRR-10-2021-0774

    Romanosky, S., & Petrun Sayers, E. L. (2024). Enterprise risk management: how do firms integrate cyber risk? Management Research Review, 47(1), 1–17. Https://doi.org/10.1108/MRR-10-2021-0774

    Saeidi, P., Saeidi, S. P., Saeidi, S. P., Galarraga Carvajal, M., Villacrés Endara, H., & Armijos, L. (2023). Effect of enterprise risk management on firms’ outcomes with the moderating effect of knowledge management. Foresight. Https://doi.org/10.1108/FS-12-2022-0188

    Sumiati, S., Wijayanti, R., & Rani Iswari, H. (2020). Intellectual Capital Exploitation in Investment Opportunity Set Through Risk Premium: Strategy to Increase Company Value. Advances in Economics, Business and Management Research,.

    Togok, S., Ruhana Isa, C., & Zainuddin, S. (2014). Operationalising Enterprise Risk Management (ERM) Effectiveness. Journal of Accounting Perspectives, 7, 28–48.

    Wong, C. C. (2020). CONCEPTUALISING RISK CULTURE ON ERM IMPLEMENTATION IN CONSTRUCTION COMPANIES. Built Environment Journal, 17(1), 59. Https://doi.org/10.24191/bej.v17i1.5988

    Wu, L.-Y. (2006). Resources, dynamic capabilities and performance in a dynamic environment: Perceptions in Taiwanese IT enterprises. Information and Management, 43(4), 447–454. Https://doi.org/10.1016/j.im.2005.11.001

    Yuwono, M. A., & Ellitan, L. (2024). Peranan Internal Audit Dalam Proses Evaluasi Risk Governance Divisi Operasional PT Agro. BIP’s JURNAL BISNIS PERSPEKTIF, 16(2), 78–97. Https://doi.org/10.37477/bip.v16i2.515

    Yuwono, M. A., & Rachmawati, D. (2023). The Process of Controlling and Monitoring Operational Risk Using COSO ERM at PT. Agro. International Journal of Management, Accounting and Economics, 10(10), 2383–2126. Https://doi.org/10.5281/zenodo.10437649

  1. Abaoud, D. (2019). The Relationship Between Knowledge Management Practices And Enterprise Risk Management In Higher Education: An Action Research. Proceedings of the 27th European Conference on Information Systems (ECIS). Https://aisel.aisnet.org/ecis2019_rp
  2. Ahmed, Md. A., & Rozario, K. P. (2024). Impact of off-balance sheet activities on bank profitability: Evidence from Bangladesh. International Journal of Financial, Accounting, and Management, 6(2), 283–299. Https://doi.org/10.35912/ijfam.v6i2.2510
  3. Alazzabi, W. Y. E., Mustafa, H., & Karage, A. I. (2023). Risk management, top management support, internal audit activities and fraud mitigation. Journal of Financial Crime, 30(2), 569–582. Https://doi.org/10.1108/JFC-11-2019-0147
  4. Arfiansyah, Z. (2021). The Effect Of Enterprise Risk Management, Knowledge Management, And Organizational Culture On Organizational Resilience. International Journal of Contemporary Accounting, 3(2), 93–114. Https://doi.org/10.25105/ijca.v3i2.9227
  5. Aryista Dewi, A., Saraswati, E., Fuad Rahman, A., & Atmini, S. (2024). Moderating role of enterprise risk management in the relationship between sustainability performance and a firm’s competitive advantage. Problems and Perspectives in Management, 22(2), 226–239. Https://doi.org/10.21511/ppm.22(2).2024.18
  6. Bandaly, D., Shanker, L., Kahyaoglu, Y., & Satir, A. (2013). Supply chain risk management-II: A review of operational, financial and integrated approaches. Risk Management, 15(1), 1–31. Https://doi.org/10.1057/rm.2012.8
  7. Cahyani Pangestuti, D., Muktiyanto, A., Geraldina, I., & Darmawan, D. (2024). Optimizing firm performance through contingency factors, enterprise risk management, and intellectual capital in Southeast Asian mining enterprises. Investment Management and Financial Innovations, 21(2), 355–369. Https://doi.org/10.21511/imfi.21(2).2024.29
  8. Chan, J. O. (2014). Integrating Knowledge Management and Relationship Management in an Enterprise Environment. Communications of the IIMA, 9(4). Https://doi.org/10.58729/1941-6687.1120
  9. Davies, M., & Snyder, D. V. (2014). International Transactions in Goods: Global Sales in Comparative Context. In International Transactions in Goods: Global Sales in Comparative Context. Https://doi.org/10.1093/acprof:oso/9780195388183.001.0001
  10. Fallahi, F., Ibenrissoul, A., & EL AMRI, A. (2022). Does Innovation Play a Role in the Relationship Between Corporate Social and Financial Performance? A Systematic Literature Review. International Journal of Financial, Accounting, and Management, 4(3), 315–334. Https://doi.org/10.35912/ijfam.v4i3.1146
  11. Firman, M. S. K., & Khudri, T. M. Y. (2025). Analysis of the internal control system in gas stations. International Journal of Financial, Accounting, and Management, 6(4), 477–493. Https://doi.org/10.35912/ijfam.v6i4.2186
  12. Garba, M., Salleh, F., Hafiz, U. A., & Bakar, N. M. A. (2022). Insurance Literacy, Risk Knowledge Management, Risk-Taking Propensity And Economic Sustainability Among SMEs: The Moderating Effect Of Financial Inclusion. Journal of Social Economics Research, 9(2), 92–110. Https://doi.org/10.18488/35.v9i2.3120
  13. Handijono, A., & Suhatman, Z. (2021). Closed-Loop Knowledge Risk Management in IT Company. Jurnal Informatika Universitas Pamulang, 6(2), 2622–4615. Https://doi.org/10.32493/informatika.v6i2.10479
  14. Heckmann, I., Comes, T., & Nickel, S. (2015). A critical review on supply chain risk - Definition, measure and modeling. Omega (United Kingdom), 52, 119–132. Https://doi.org/10.1016/j.omega.2014.10.004
  15. Huemer, L. (2012). Unchained from the chain: Supply management from a logistics service provider perspective. Journal of Business Research, 65(2), 258–264. Https://doi.org/10.1016/j.jbusres.2011.05.028
  16. King, J. Y., Shun, H. C., & Ching, C. Y. (2020). Establishment and applications of quality management system for service industries. International Journal of Financial, Accounting, and Management, 1(4). Https://doi.org/10.35912/ijfam.v1i4.151
  17. Lam, J. S. L., & Zhang, L. (2014). Enhanced logistics service provider framework for higher integration and efficiency in maritime logistics. International Journal of Logistics Research and Applications, 17(2), 89–113. Https://doi.org/10.1080/13675567.2013.836161
  18. Lam, L., Nguyen, P., Le, N., & Tran, K. (2021). The Relation among Organizational Culture, Knowledge Management, and Innovation Capability: Its Implication for Open Innovation. Journal of Open Innovation: Technology, Market, and Complexity, 7(1), 66. Https://doi.org/10.3390/joitmc7010066
  19. Manab, N. A., & Aziz, N. A. A. (2019). Integrating knowledge management in sustainability risk management practices for company survival. Management Science Letters, 9(4), 585–594. Https://doi.org/10.5267/j.msl.2019.1.004
  20. Mårtensson, M. (2000). A critical review of knowledge management as a management tool. Journal of Knowledge Management, 4(3), 204–216. Https://doi.org/10.1108/13673270010350002
  21. Neef, D. (2005). Managing corporate risk through better knowledge management. In The Learning Organization (Vol. 12, Issue 2, pp. 112–124). Https://doi.org/10.1108/09696470510583502
  22. Nwankpa, J. K., & Datta, P. (2017). Balancing exploration and exploitation of IT resources: The influence of Digital Business Intensity on perceived organizational performance. European Journal of Information Systems, 26(5), 469–488. Https://doi.org/10.1057/s41303-017-0049-y
  23. Ongkosongo, A. D., & Wijayanti, N. (2025). Improve resiliency through operational risk management: Case study in coffee shop ABC. International Journal of Financial, Accounting, and Management, 6(3), 431–443. Https://doi.org/10.35912/ijfam.v6i3.2176
  24. Permatasari, I. (2020). Does corporate governance affect bank risk management? Case study of Indonesian banks. International Trade, Politics and Development, 4(2), 127–139. Https://doi.org/10.1108/ITPD-05-2020-0063
  25. Plessis, M. du. (2019). The role of knowledge management in innovation. Journal of Knowledge Management, 20.
  26. Purnama, C., & Puspitowati, I. (2024). Inovasi Produk sebagai Mediator Knowledge Management terhadap Competitive Advantage Coffee Shop. Jurnal Manajerial Dan Kewirausahaan, 6(3), 663–671. Https://doi.org/10.24912/jmk.v6i3.31599
  27. Rodriguez, E., & Edwards, John. (2014). Knowledge management in support of Enterprise Risk Management. International Journal of Knowledge Management, 10(2), 43–61. Https://doi.org/10.4018/ijkm.2014040104
  28. Rodriguez, E., & Steven Edwards, J. (2009). Knowledge management and enterprise risk management implementation in financial services. Https://www.researchgate.net/publication/41116552
  29. Romanosky, S., & Petrun Sayers, E. L. (2023). Enterprise risk management: how do firms integrate cyber risk? Management Research Review. Https://doi.org/10.1108/MRR-10-2021-0774
  30. Romanosky, S., & Petrun Sayers, E. L. (2024). Enterprise risk management: how do firms integrate cyber risk? Management Research Review, 47(1), 1–17. Https://doi.org/10.1108/MRR-10-2021-0774
  31. Saeidi, P., Saeidi, S. P., Saeidi, S. P., Galarraga Carvajal, M., Villacrés Endara, H., & Armijos, L. (2023). Effect of enterprise risk management on firms’ outcomes with the moderating effect of knowledge management. Foresight. Https://doi.org/10.1108/FS-12-2022-0188
  32. Sumiati, S., Wijayanti, R., & Rani Iswari, H. (2020). Intellectual Capital Exploitation in Investment Opportunity Set Through Risk Premium: Strategy to Increase Company Value. Advances in Economics, Business and Management Research,.
  33. Togok, S., Ruhana Isa, C., & Zainuddin, S. (2014). Operationalising Enterprise Risk Management (ERM) Effectiveness. Journal of Accounting Perspectives, 7, 28–48.
  34. Wong, C. C. (2020). CONCEPTUALISING RISK CULTURE ON ERM IMPLEMENTATION IN CONSTRUCTION COMPANIES. Built Environment Journal, 17(1), 59. Https://doi.org/10.24191/bej.v17i1.5988
  35. Wu, L.-Y. (2006). Resources, dynamic capabilities and performance in a dynamic environment: Perceptions in Taiwanese IT enterprises. Information and Management, 43(4), 447–454. Https://doi.org/10.1016/j.im.2005.11.001
  36. Yuwono, M. A., & Ellitan, L. (2024). Peranan Internal Audit Dalam Proses Evaluasi Risk Governance Divisi Operasional PT Agro. BIP’s JURNAL BISNIS PERSPEKTIF, 16(2), 78–97. Https://doi.org/10.37477/bip.v16i2.515
  37. Yuwono, M. A., & Rachmawati, D. (2023). The Process of Controlling and Monitoring Operational Risk Using COSO ERM at PT. Agro. International Journal of Management, Accounting and Economics, 10(10), 2383–2126. Https://doi.org/10.5281/zenodo.10437649