Title: Building resilience: how sustainability and innovation accounting influence enterprise risk management and performance in Jordanian SMEs

Authors: Munther Al-Nimer; Rana Taha; Nizar Mohammad Alsharari

Addresses: School of Management, Canadian University Dubai, United Arab Emirates; Department of Accounting, Business School, The Hashemite University, Jordan ' Accounting Department, School of Business, University Sains Malaysia, Malaysia ' Department of Accounting, Finance, and Entrepreneurship, College of Business, Jackson State University, P.O. Box 17970, Jackson, MS 39217-0560, USA

Abstract: This study examines the interrelationships between enterprise risk management (ERM), corporate sustainable development (CSD), innovation capability (IC), and organisational performance (OP) in Jordanian SMEs. Grounded in resource-based view theory, the research investigates the mediating roles of CSD and IC in the ERM-OP relationship. Data from 309 SMEs reveal that ERM positively influences OP, with CSD mediating this relationship. IC positively relates to CSD and OP, mediating the CSD-performance link. Firms implementing ERM are more likely to engage in CSD and enhance IC. Businesses pursuing CSD show a higher propensity for fostering IC, which positively impacts performance. The study provides novel insights into these dynamics in resource-constrained emerging markets, offering theoretical implications for strategic management literature and practical implications for SMEs, policymakers, and regulators in developing economies. Findings contribute to understanding how integrating risk management, sustainability initiatives, and innovation capabilities can enhance SME performance in challenging institutional environments.

Keywords: enterprise risk management; ERM; corporate sustainable development; CSD; innovation capability; organisational performance; Jordan.

DOI: 10.1504/IJBPM.2026.153467

International Journal of Business Performance Management, 2026 Vol.27 No.3, pp.329 - 359

Received: 30 Sep 2023
Accepted: 02 Jun 2024
Published online: 11 May 2026 *

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