Exploring the relationship between internationalization and enterprise risk management: a virtuous cycle?

Purpose This article explores the relationship between enterprise risk management (ERM) and internationalization. It argues that companies enhance their ERM capabilities when they internationalize, while also noting that increased ERM maturity supports the internationalization process. Design/methodology/approach Building on the Dynamic Capability framework, the relationships were tested using enterprise-level, cross-sectional data, from an emerging country's publicly listed companies and a PLS-SEM. Findings Results corroborate the arguments regarding the connection between internationalization and ERM, finding stronger implications from internationalization to ERM than in the reverse causal direction. Originality/value The few ERM studies that consider firms' internationalization oversimplify this complex phenomenon, while risk studies within International Business (IB) literature have mainly examined risks in silos. This article initiates the convergence of the IB and ERM fields and corroborates the integration of international strategy and risk management toward value creation and business resilience.