Influence of Organizational Learning and Firm Size on Risk Management Maturity

Abstract

This paper describes the influence of organizational learning on risk management maturity (RMM) considering firm size as a moderating variable. Information acquisition, knowledge dissemination, shared interpretation, and organizational memory were used to measure the influence of organizational learning on RMM in 132 small and large construction firms in Malaysia. The data were analyzed using partial least-squares structural equation modeling (PLS-SEM) and multigroup moderating analysis. The results show a significant influence of information acquisition and shared interpretation on RMM. Firm size seems to moderate the relationship between shared interpretation and RMM. Organizational learning is recognized as a key factor in organization maturity. This study shows that smaller firms should exert more efforts in shared interpretation of information to enhance their maturity level. The recommendations provided in this paper serve as a guideline for construction firms to increase their level of RMM.

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