The effect of maturity learn element in Enterprise risk management and corporate social responsibility on the level of digital transformation

Abstract

AbstractEnterprise Risk Management (ERM) has emerged as a response to globalization and regulatory pressure on firms to manage their risk comprehensively. CSR is related to corporate risk management, as by engaging in CSR activities firms can be more effective in managing stakeholder relationships. Extant studies rarely examine both issues to the level of digital transformation. In the coming years, the issue of digital transformation will have an even bigger impact on business models. The first step in the effective implementation of ERM is the ability of the organization to learn and understand the requirements of ERM implementation in its company. Thus, it is important to examine the effect of the maturity learn element in ERM and CSR as risk management on the level of digital transformation. In addition, this paper also examines the moderating role of CSR on the association between ERM and the level of digital transformation. Our samples consist of manufacturing companies of developed countries in the European Union (which consists of Italy, Spain, Belgium Switzerland, Germany, France, and UK). The paper found evidence that enterprise risk management has a positive significant effect on the level of digital transformation. The paper also found evidence that CSR has a direct effect on the level of digital transformation. However, the paper failed to provide supporting evidence on the moderating role of CSR on the association between ERM and the level of digital transformation.