Manuscript Title:

A MODEL FOR DISMANTLING ISOMORPHISM AND RISK MANAGEMENT DECISIONS: BASED ON LITERATURE REVIEW

Author:

IKA YOGA, HADRI KUSUMA, ZAENAL ARIFIN, AGUS HARDJITO

DOI Number:

DOI:10.17605/OSF.IO/3HNY6

Published : 2022-06-28

About the author(s)

1. IKA YOGA - Doctoral Program in Economics, Faculty of Business and Economics, Islamic University of Indonesia Yogyakarta, Indonesia.
2. HADRI KUSUMA - Department of Accounting, Faculty of Business and Economics, Islamic University of Indonesia, Yogyakarta, Indonesia.
3. ZAENAL ARIFIN - Department of Management, Faculty of Business and Economics, Islamic University of Indonesia, Yogyakarta, Indonesia.
4. AGUS HARDJITO - Department of Management, Faculty of Business and Economics, Islamic University of Indonesia, Yogyakarta, Indonesia.

Full Text : PDF

Abstract

This paper built a model to reveal the existence of isomorphism pressure that can influence the company's risk management decisions, primarily related to hedging as a risk management mechanism. Companies will always face increasingly complex uncertainties that encourage managers to choose hedging strategies for their risk management. Aside from the nature of technological rationalism, several factors can influence managers' decisions to adopt hedging, including pressure from within and outside the company. These pressures will change the behavior of managers to be more rational. The manager's theory states that managers do not like or avoid risk. This paper develops and reveals the effect of isomorphism pressure on managers' behavior in making corporate hedging decisions. This research is a literature review that offers a new concept to see the company's hedging decisions based on the application of isomorphism theory.


Keywords

Risk Management, Decision, Isomorphism, Hedging, Model, Strategy, Behavior.