Evaluating the Fit of an Organizational Risk Management Model Based on the Theory of Constraints
Keywords:
Enterprise Risk Management, Theory of Constraints, Structural Equation Modeling, Model Fit, Financial Management, Organizational PerformanceAbstract
The purpose of this study was to evaluate the fit of an organizational risk management model based on the Theory of Constraints and examine the structural relationships among causal conditions, core category, inhibiting factors, contextual factors, strategies, and outcomes. This study was applied in purpose and quantitative descriptive-survey in design with a cross-sectional approach. The statistical population consisted of 205 accounting and financial professionals working in private sector organizations in Pardis Technology Park, from which 126 participants were selected based on Morgan’s sampling table using simple random sampling. Data were collected using a researcher-developed questionnaire consisting of 29 items measured on a ten-point Likert scale. The validity of the instrument was confirmed through face, content, and construct validity, and reliability was verified using Cronbach’s alpha and composite reliability. Data were analyzed using SPSS and SmartPLS software and structural equation modeling. The results indicated that all factor loadings exceeded acceptable thresholds and structural relationships among constructs were statistically significant. Path coefficients for causal conditions (0.688), core category (0.700), inhibiting factors (0.701), contextual factors (0.610), strategies (0.638), and outcomes (0.652) were all positive and significant. Model fit indices showed acceptable values, including Chi-square/df below 5, RMSEA below 0.10, SRMR below 0.08, and GFI, NDI, and CDI above 0.90, confirming good model fit. Confirmatory factor analysis results also demonstrated strong construct validity. The findings confirmed that the organizational risk management model based on the Theory of Constraints has acceptable fit and can serve as an effective framework for identifying, analyzing, and managing organizational risks. The model contributes to improved decision-making quality, enhanced organizational coherence, increased predictive capability, and improved overall organizational performance.
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Copyright (c) 2025 Hossein Karimkhani (Author); Mohammad Esmaeil Molaei (Corresponding author); Shohreh Yazdani (Author)
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