How market competition influences organizational performance: Mediation in the interplay of management accounting system, enterprise risk management, and organizational innovation performance

Abstract

AbstractThe purpose of this study is to examine the relationship between organizational performance (OP) in Vietnam and market competition (MC), enterprise risk management (ERM), management accounting system (MAS), and organizational innovation performance (OIP). We surveyed 397 individuals working in the company to elucidate the link between these variables. Data from the multiple factor survey were analyzed using PLS‐SEM software to illustrate the link between MC, MAS, ERM, OIP, and OP. The findings demonstrate a favorable association between direct and intermediary variables to OP, as predicted. Additionally, the intermediary factors have beneficial effects that help businesses in developing effective strategies in a competitive market, generating revenues, and achieving their objectives. The research results of the study show that, in a highly competitive market, organizational innovation efficiency is the top priority of organizations. To achieve this, companies must continuously adapt to the demands of the market.