Research Article

Risk Governance and Organizational Performance of Telecommunications Firms in Nigeria

Joshua Nomshak Yakubu1*, Sunday Adekunle Aduloju2
1 Department of Insurance, University of Jos
2 Department of Actuarial Science and Insurance, University of Lagos
* Corresponding author: joshuayakubu63@gmail.com
Published: Nov, 2023
DOI: 10.67894/bbr.2023.fyvyxvnq
Pages: 1-14
Views: 16
Downloads: 3

Abstract

The study focuses on risk governance and organisational performance of telecommunication firms in Nigeria. A Cross-sectional survey is adopted and data are collected from 372 respondents from the Nigerian telecommunication firms using a google survey questionnaire. Multiple linear regression method of data analysis is employed to test the research hypotheses. The study finds that risk management strategy has a significant effect on organisational performance. The result also shows that accountability has no significant effect on organisational performance. Furthermore, the result further discloses that compliance has a significant effect on organisational performance of telecommunication firms in Nigeria. It is concluded that risk governance measures are important ingredients in managing vulnerabilities that telecommunication firms should have to address to achieve their set goals and objectives. The study therefore, recommends that more risk management strategies is formulated to help mitigate risk that would affect performance as a result of technological advancement, a proper check and balance mechanism should be place for board members and management to be effective in carrying out their job responsibilities, and total compliance team should be in place to avoid litigations and ensure optimal efficiency. 

Keywords

Risk Governance Risk Management Strategy Accountability Compliance Organisational Performance Telecommunication Firms

References

  1. Aduloju, S. A., Yakubu, J. N. & Dabo, S. B. (2023). Does Enterprise Risk Structure Matter for The Organizational Performance of Telecommunication Companies in Nigeria? Lafia Journal of Economics and Management Sciences, 8(1), 91-104. Retrieved 31 October 2023 from https://lajems.com/index.php/lajems/article/view/242
  2. Agustiawan & Halim, A. (2019). Accountability and Performance of the Public Sector Organization. Advances in Social Science, Education and Humanities Research, 373(1), 108-113
  3. Anderson, M. H., & Trujillo, C. A. (2022). Performance Measurement Systems and Firm Performance: A Meta-Analysis. Journal of Business Research, 143(1), 469-482
  4. Annor, B. P., Mensah-Bonsu, A., & Jatoe, J. B. D. (2016). Compliance with Global Gap Standards Among Smallholder Pineapple Farmers in Akuapem-South, Ghana. Journal of Agribusiness in Developing and Emerging Economies, 6(1), 21-38.
  5. Carton, R. B. (2004). Measuring Organizational Performance: An Exploratory Study [Doctorate Thesis, University of Georgia]. Athens.https://esploro.libs.uga.edu/esploro/outputs/doctoral/Measuring-organizational-performance-an-exploratory-study/9949334350802959
  6. Cavezzali, E. &Gardenal, G. (2015). Risk Governance and Performance of The Italian Banks: An empirical analysis. Working Papers 8, Department of Management, UniversitàCa'Foscari Venezia.
  7. Checkel, J. T. (1999). Norms, Institutions, and National Identity in Contemporary Europe.
  8. International Studies Quarterly, 43(3), 83-114. http://www.jstor.org/stable/260096
  9. Chukwudifu, A. A. & Olori, W. O. (2020). Corporate Governance and Survival of Telecommunication Firms in Port Harcourt, Rivers State. European Journal of Business and Management, 12(10), 68-75. DOI: 10.7176/EJBM/12-10-08
  10. Ciora, C. & Robu, V. (2010). Measuring Performance, Value Creation and Value-Based Management in The Context of Competitiveness and Globalization. Economic Sciences Series, 2(38), 1-8.
  11. Demeke, B. & Tao, C. (2020). Concept & Perspectives of Organizational Performance Measurement: Literature Review. International Journal of Academic Multidisciplinary Research (IJAMR), 4(8), 89-96.
  12. Eisenhardt, K. M. (1985). Control: Organizational and Economic Approaches. Management Science, 32(1), 134-149.
  13. Erin, O., Bamigboye, O. &Arumona, J. (2020). Risk Governance and Financial Performance: an empirical analysis. Business: Theory and Practice, 21(2), 758-768. https://doi.org/10.3846/btp.2020.10850
  14. Ghauri, P. & Gronghaugh, K. (2005). Research Methods in Business Studies. Harlow FT/Prentice-Hall.
  15. Hassan, H., Zulkafli, A. H. & Ibrahim, H. (2019). Corporate Governance Reform in Banking: Risk Governance and Performance of Commercial Banks in Asia Emerging Markets. International Journal of Supply Chain Management, 8(1), 994-1000.
  16. Interligi, L. (2010). Compliance Culture: A Conceptual Framework. Journal of Management and Organization; Lyndfield, 16(2), 235-249.
  17. International Finance Corporation (2015). Risk Culture, Risk Governance, and Balanced Incentives: Recommendations for Strengthening Risk Management in Emerging Market Banks. Retrieved July 15, 2023, from https://www.ifc.org/wpscm/connect/efe5f3a6f-1241-46cc-89b9-c4be75e62a7c/IFC+Risk+Culture+Governance+Incentives+Report.pdf?MOD=AJPERES&CVID=lw9GOEh.
  18. International Organization for Standardization [ISO, 2014]. Compliance Management System Guidelines. International Organisation for Standardisation. Geneva, Switzerland.
  19. Jabber, A. S. (2020). The Impact of Risk Management Practices on The Organisational Performance: Field Study at Jordanian Insurance Companies [Master's thesis, Middle East University]. Amman Jordan. https://meu.edu.jo/libraryTheses/The%20Impact%20of%20Risk%20Management%20Practices%20on%20the%20Organisational%20Performance.pdf
  20. Jassam, B.H. (2021). Effect of Risk Management on The Organizational Performance: The Moderating Role of Board Equity Ownership. International Journal of Academic Accounting, Finance & management Research (IJAAFMR), 5(4),16-22.
  21. Jensen, M. & Meckling, W. H. (1976). Theory of The Firm: Managerial Behavior, Agency, Cost, and Ownership Structure. Journal of Financial Economics, 3(4), 305-360
  22. Kakiya, G. G. (2021). Enterprise Risk Management Practices, Intellectual Capital and Organisational Performance of Corporates in Kenyan State Corporations [Doctoral thesis, MOI University]. Kenya. https://ir.mu.ac.ke/xmlui/handle/123456789/4732
  23. Kamunya, J. (2016). Risk Management Strategies and Performance of Non-Governmental Organizations in Nairobi City County, Kenya [Master thesis-Kenyatta University]. https://ir-library.ku.ac.ke/handle/123456789/23359
  24. Kasozi, D. N. & Brandon, C. (2018). Mapping Compliance to Organisation Performance in Statistical Work. International Journal of Quality Assurance and Management, 8(1), 37-45.
  25. Kenton, W. & Kindness, D. (2023). Accountability: Definition, Types, Benefits, and Example. https://www.investopedia.com/terms/a/accountability.asp#:~:text=Investopedia%20%2F%20Madelyn%20Goodnight-,What%20Is%20Accountability%3F,Community%20in%20Which%20it%20Operates.
  26. Ling, Y. H. & Hung, L. (2010). The Influence of Intellectual Capital on Organisational Performance: The Mediation Effect of intellectual Capital Management Strategy. Human Resources Management Student Newspaper, 10(1), 1-27.
  27. Marjolein, B.A & Ortwin, R. (2011). Risk governance. Journal of Risk Research, 14(4), 431-449. https://doi.org/10.1080/13669877.2011.553730
  28. Neyer, J., & Zürn, M. (2001). Compliance in Comparative Perspective. The EU and Other International Institutions. InIIS-Arbeitspapier, nr. 23/01, Universität Bremen.
  29. Ortwin, R. (2020). Knowledge to Regulatory Action. In: Glückler, J., Herrigel, G., Handke, M (eds) Knowledge for Governance. Knowledge and Space, 15(1). Springer, Cham. https://doi.org/10.1007/978-3-030-47150-7_5
  30. Parker, C. (2002). Regulation of the ethics of Australian Legal Practice: Autonomy and Responsiveness. UNSW Law Journal, 25(3), 676.
  31. Pouryousefi, S. & Frooman, J. (2017). The Problem of Unilateralism in Agency Theory: Towards a Bilateral Formulation. Business Ethics Quarterly, 27(2), 163-182
  32. Ross, R., Pillitteri, Graubart, R., Bodeau, D. & Mcquaid, R. (2021). Developing cyber-resilient systems: A Systems Security Engineering Approach. NIST Special Publication 800-600, 2(1), 1-294.
  33. Singh, S., Darwish, T. K. & Potocnik, K. (2016). Measuring Organizational Performance: A Case for Subjective Measures. British Journal Management, 27(1), 214-224. https://doi.org/10.1111/1467-8551.12126
  34. Snell, R. (2004). Should We Call It an Ethics Program Or A Compliance Program. Journal of Health Care Compliance, 16(2), 235-249.
  35. Stephen D. G. & Daniel R. P. (2013). Thinking About Risk: FISMA and The Risk Management Framework, Syngress, 53-78. https://doi.org/10.1016/B978-1-59-749641-4.00003-5.
  36. Terje, A. & Ortwin, R. (2020). Some Foundational Issues Related to Risk Governance and Different Types of Risks. Journal of Risk Research, 23(9), 1121-1134. DOI:10.1080/13669877.2019.1569099.
  37. Viscelli, T. R., Beasley, M. S. & Hermanson, D. R. (2016). Research Insights About Risk Governance: Implications from A Review of ERM Research, SAGE Open, DOI:10.1177/2158244016680230.
  38. Zikmund, W. G. (2003). Business Research Methods (7th ed.). New York: Thomson Publisher.
How to Cite

Yakubu, J. N., & Aduloju, S. A. (2023). Risk Governance and Organizational Performance of Telecommunications Firms in Nigeria. Bayero Business Review, 7(2), 1-14. https://doi.org/10.67894/bbr.2023.fyvyxvnq

J. N. Yakubu, and S. A. Aduloju, "Risk Governance and Organizational Performance of Telecommunications Firms in Nigeria," Bayero Business Review, vol. 7, no. 2, pp. 1-14, November 2023. doi: 10.67894/bbr.2023.fyvyxvnq

Share this article:
Facebook X / Twitter LinkedIn
Download PDF View Full Text (PDF) Back to Articles