The role of COSO-based enterprise risk management in enhancing competitive advantage among Thai SMEs

Abstract

The relationship between management and risk management remains unclear, particularly for small and medium-sized enterprises (SMEs) in Thailand, a developing country, as most existing research focuses on large industries. This study aims to assess risk management factors influencing SMEs’ competitive advantage. A survey of 400 SMEs with offices in Bangkok province and using financial transaction technology was conducted. Results show that control environment (β = 0.354, p <.01), risk assessment (β = 0.099, p <.05), control activities (β = 0.255, p <.01), review and improvement (β = 0.185, p <.01), and monitoring (β = 0.157, p <.05) significantly influence SMEs’ competitive advantage. This study provides empirical support for the Committee of Sponsoring Organizations of the Treadway Commission (COSO) framework in achieving competitive advantage, particularly in developing economies like Thailand. This study also provides empirical support for the application of the COSO model in achieving competitive advantage, highlighting that the relationship is not merely bivariate.