Integration of Enterprise Risk Management and Performance Measurement System towards a better strategic decision : A Study of small Swedish manufacturing companies within the tech industry.
Sammanfattning: Purpose: The purpose of this research was to examine and provide knowledge of how integration between enterprise risk management (ERM) t and performance measurement systems (PMS) can support the companies towards improving strategic decision-making within small Swedish manufacturing tech companies. The proceeding purpose was also to research challenges occurring when integrating enterprise risk management and performance measurement systems and further study how the challenges can be mitigated. The research questions within the study were. Methodology: In order to conduct the research, a literature review has been made in order to establish a good theoretical foundation in order to answer the research questions through an abductive approach. A qualitative method, through an exploratory approach, has been applied in order to answer the research question and the purpose of the study. Multiple case studies with interview data towards hermeneutic interviews have been selected as a strategy. The empirical data have been collected through semi-structured interviews and were provided by five respondents who work with both ERM and PMS on a daily work basis. Further, the theory and empirical data have been analyzed through cross-case synthesis and interactive spiral. Finding: The findings in this research resulted in the integration of ERM and PMS, improving strategic decisions by supporting each other's infirmity. What can be said from the findings is that ' ERM can greatly measure risk when integrating the PMS and to further help determine relevant strategic decisions. The outstanding findings regarding the challenges when integrating ERM and PMS were a large amount of data to handle and a never-ending list of potential risks. In order to mitigate the challenges regarding the integration of ERM and PMS, it is important to take into consideration the communication between the two.
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