Determinants of Risk Management Adoption in SMEs: A PRISMA-Based Systematic Review, 2015–2025
Abstract
Risk management has evolved into a strategic competence for organizational resilience in volatile, uncertain, complex, and ambiguous environments. Small and medium-sized enterprises (SMEs), however, are constrained by several distinct limitations that have thus far precluded the adoption of sophisticated risk management practices. This study investigates the key determinants of the adoption of risk management practices and theories by SMEs.
A PRISMA-guided systematic search of Scopus, Web of Science, ScienceDirect, and Google Scholar, complemented by backward and forward citation chasing, was performed by conducting a series of transformed search queries inspired by the research question. A total of 22 studies met the inclusion criteria and were retained in the final synthesis corpus, with all studies being published in the last decade (2015–2025). An inductive qualitative meta-synthesis methodology inspired by grounded theory methodology and theoretical themes of information systems was employed for the synthesis.
Thematic analysis revealed that studies identified five key determinants of risk management adoption by SMEs, which have been classified into an integrated typology: internal determinants (resources, formalisation, planning sophistication); managerial determinants (owner-manager competencies, leadership commitment, risk perception); external determinants (regulatory and stakeholder pressures, sectoral determinants); environmental determinants (crises, climate change, digital transformation); and informational determinants (information systems, reporting, documentation, training/advisory support).
This study provides a consistent framework for the adoption of risk management by SMEs within volatile environments. Prior research has identified a large set of potential determinants, and by synthesizing these, this study reveals distinct patterns of divergence within and across regional and industrial boundaries. Furthermore, this study shows that environmental and information determinants are increasingly important but have been relatively under researched, particularly in the post-2020 era. This study specifically captures post-2020 transformations associated with digitalisation, cybersecurity exposure, crisis preparedness, climate-related uncertainty, and informational capabilities affecting SME resilience and risk governance.
As a qualitative evidence synthesis, the review identifies recurring patterns and determinant categories rather than estimating statistical effect sizes.
Implications are provided for both managers and policymakers. Future research directions focus on longitudinal research and the development of standard measures.
Keywords: Small and medium-sized enterprises; Risk management adoption; Enterprise risk management; Determinants; Systematic review; PRISMA; Resilience.
DOI https://doi.org/10.55463/issn.1674-2974.53.6.4
Full Text:
PDFReferences
FALKNER E. M., and HIEBL M. R. W. Risk management in SMEs: A systematic review of available evidence. The Journal of Risk Finance, 2015, 16(2): 122–144. https://doi.org/10.1108/JRF-06-2014-0079
CHEMLAL M., MRABET A., and BENAZZOU L. Risk management in Moroccan SMEs: A state-of-the-art review. Revue Marocaine de Recherche en Management et Marketing, 2017, 1: 1–15. https://doi.org/10.48376/IMIST.PRSM/REMAREM-V1I16.9921
AFOLABI T. S., and JAMES J. T. Risk management and performance of small and medium enterprises in Osun State, Nigeria. Archives of Business Research, 2018, 6(12): 150–166. https://doi.org/10.14738/abr.612.5765
LIMA P. F. D. A., and VERBANO C. Project risk management implementation in SMEs: A case study from Italy. Journal of Technology Management & Innovation, 2019, 14(1): 3–10. https://doi.org/10.4067/S0718-27242019000100003
FERREIRA DE ARAÚJO LIMA P., CREMA M., and VERBANO C. Risk management in SMEs: A systematic literature review and future directions. European Management Journal, 2020, 38(1): 78–94. https://doi.org/10.1016/j.emj.2019.06.005
BALOYI T., and OZUMBA A. Strategic risk management among small enterprises in the construction industry. MATEC Web of Conferences, 2020, 312: 02013. https://doi.org/10.1051/matecconf/202031202013
VALLEE-TOURANGEAU, G., & VALLEE-TOURANGEAU, F. (2020). The psychology of risk management. PsyArXiv. https://doi.org/10.31234/osf.io/rxcn5
CROVINI C., OSSOLA G., and BRITZELMAIER B. How to reconsider risk management in SMEs? An advanced, reasoned and organised literature review. European Management Journal, 2021, 39(1): 118–134. https://doi.org/10.1016/j.emj.2020.11.002
CHAKABVA O., TENGEH R., and DUBIHLELA J. Factors inhibiting effective risk management in emerging market SMEs. Journal of Risk and Financial Management, 2021, 14(6): 231. https://doi.org/10.3390/jrfm14060231
MOHAMAD FAUZI S. N., GHAZALI P. L., MOHAMMED FOZIAH N. H., MAHMUD M. S., MUHAMMAD N., and ABDUL ROHIM R. A. The role of enterprise risk management on SMEs performance: A review paper. The Journal of Management Theory and Practice, 2022, 3(1): 73–77. https://doi.org/10.37231/jmtp.2022.3.1.214
MTHIYANE Z. Z. F., VAN DER POLL H. M., and TSHEHLA M. F. A framework for risk management in small medium enterprises in developing countries. Risks, 2022, 10(9): 173. https://doi.org/10.3390/risks10090173
RODRÍGUEZ-ESPÍNDOLA O., CHOWDHURY S., DEY P. K., ALBORES P., and EMROUZNEJAD A. Analysis of the adoption of emergent technologies for risk management in the era of digital manufacturing. Technological Forecasting and Social Change, 2022, 178: 121562. https://doi.org/10.1016/j.techfore.2022.121562
TAJER A., BENYAICH S., and RIGAR S. M. Risk management and business resilience: What effects on Moroccan SMEs? Journal of Human and Social Sciences of the Academy of the Kingdom of Morocco, 2022, 1(1): 43–62. https://doi.org/10.34874/PRSM.SHS-ARM-VOL1ISS1.35452
BUGANOVÁ K., HUDÁKOVÁ M., ŠIMÍČKOVÁ J., and MOŠKOVÁ E. Disparities in the implementation of risk management in SMEs. Systems, 2023, 11(2): 71. https://doi.org/10.3390/systems11020071
CHAKABVA O., and TENGEH R. K. The relationship between SME owner-manager characteristics and risk management strategies. Journal of Open Innovation: Technology, Market, and Complexity, 2023, 9(3): 100112. https://doi.org/10.1016/j.joitmc.2023.100112
AHMAD S. A., and TEO P.-C. The implementation of enterprise risk management (ERM) frameworks in small and medium enterprises (SMEs): A literature review. International Journal of Academic Research in Business and Social Sciences, 2024, 14(9): 290–307. https://doi.org/10.6007/IJARBSS/v14-i9/22353
BIN-HUSAYN A. R., ABDULLAH M., and RIMMEL G. The relationship between risk perception and risk management: A systematic literature review. Journal of Risk Research, 2024, 27(10): 1290–1307. https://doi.org/10.1080/13669877.2024.2447258
GLOWKA G., HULE R., and ZEHRER A. Risk perception of SMEs: Strategic risks, family-related risks, external risks. Risk Management, 2024, 26(4): 17. https://doi.org/10.1057/s41283-024-00148-2
ULUPUI I. G. K. A., ZAIRIN G. M., MUSYAFFI A. M., and SUTANTI F. D. Navigating uncertainties: A tri-factorial evaluation of risk management adoption in MSMEs. Cogent Business & Management, 2024, 11(1): 2311161. https://doi.org/10.1080/23311975.2024.2311161
YUWONO M. A., and RACHMAWATI D. Role of risk management in improving the operational effectiveness of SMEs: A systematic review. JISR Management and Social Sciences & Economics, 2024, 22(3): 1–25. https://doi.org/10.31384/jisrmsse/2024.22.3.1
DIJOUBATE B. M. Enterprise risk management in SMEs: Insights from West Africa. Risks and Security of Internet and Systems, 2025, 15456: 440–452. https://doi.org/10.1007/978-3-031-89350-6_28
SOTAMAA T., REIMAN A., and KAUPPILA O. Manufacturing SME risk management in the era of digitalisation and artificial intelligence: A systematic literature review. Continuity & Resilience Review, 2025, 7(1): 1–28. https://doi.org/10.1108/CRR-12-2023-0022
Refbacks
- There are currently no refbacks.
