Unlocking the nexus: Exploring the mediating and moderating dynamics of risk factors in economic literacy for organizational performance - A systematic review

Zainizam Zakariya

Unlocking the nexus: Exploring the mediating and moderating dynamics of risk factors in economic literacy for organizational performance - A systematic review

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Title

Unlocking the nexus: Exploring the mediating and moderating dynamics of risk factors in economic literacy for organizational performance - A systematic review

Type

Article

Main Author

Zainizam Zakariya

Subject

H Social Sciences (General)

ISBN

2054-6238

Language Code

eng

Bibliographic Details

Place of Production

Tanjung Malim

Publisher

Fakulti Pengurusan & Ekonomi

Year of publication

2024

Notes

Journal Of Economic And Administrative Sciences

Dissertation Note

Other

Degree Type

Others

Corporate Name

Universiti Pendidikan Sultan Idris

HTTP Link

Access Web Resource

Abstract

Purpose: Recognizing economic literacy as a vital form of intellectual capital provides essential tools to mitigate the adverse impact of risk factors on business organizations' performance. This recognition serves as a strong rationale for prioritizing economic literacy as a strategic asset in navigating the complexities of risk factors for sustained organizational performance. To bridge this gap, this study examines the role of risk factors in the economic literacy of an organization and how they affect organizational performance. Design/methodology/approach: This exploratory study employed a qualitative research method, utilizing a systematic review with the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) approach to identify gaps. A comprehensive search across databases was conducted using keywords related to risks, economic literacy and organizational performance. In total, 32 articles were meticulously analyzed, focusing on methodology, results and discussion sections to address research questions. Findings: This study highlights the impact of risk factors on economic literacy and organizational performance, focusing on risk-taking, attitude, enterprise risk management (ERM), financial literacy and organizational performance. It reveals that possessing economic literacy can mitigate financial risks in corporations by helping entrepreneurs identify business opportunities and pitfalls, enabling informed and prudent financial decision-making. Conflicting findings challenge existing knowledge on the link between risk factors and financial literacy, particularly in new product development decisions, highlighting the need for further investigation into environmental factors shaping this connection. Originality/value: The study developed a conceptual model that explains the interaction among economic literacy, risk factor and organization performance, which has implications for the development of the required intellectual capital to mitigate the impact of risk factors. Also, the study identified diverse conceptual, methodological and geographical gaps that will provide direction for future studies. Future research could delve into firm-level or cross-country data via surveys, interviews or focus groups, enriching the research's robustness and depth for nuanced insights into the investigated relationships. © 2024, Emerald Publishing Limited.

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