RISK MANAGEMENT PRACTICE AND ORGANIZATIONAL PERFORMANCE: THE MEDIATING ROLE OF BUSINESS MODEL INNOVATION

Abstract

Purpose: This paper examines the effect of risk management practices on organizational performance and the mediating role of business model innovation in Nigeria. Design/Methodology/Approach: This research uses quantitative research methods. The paper uses a sample of 83 employees, with data collected through an online questionnaire using a Likert scale using a scale of 5, and the data was analyzed using partial least square structural equation modeling (PLS-SEM). The stages of data analysis begin with testing the validity and reliability of the instrument, determination and finally testing the hypothesis. Findings: The results showed that practices for risk management and financial performance had a direct and large effect on financial performance. Furthermore, risk management practices are linked to non-financial performance. The result shows that business model innovation has a negative relationship with non-financial performance. It has a positive impact by meaningfully strengthening financial relationships; a partial mediating result was revealed for the relationship between risk management practices and non-financial behaviors.