Identifying Organizational Risk Management Components Based on the Theory of Constraints
Keywords:
Organizational Risk Management, Theory of Constraints, Strategic Decision-Making, Resource Focus, Organizational SustainabilityAbstract
Objective: This study aims to identify and explain the key dimensions and components of organizational risk management based on the Theory of Constraints from the perspectives of academic and professional experts.
Methodology: This applied qualitative study employed a grounded theory approach. Participants included financial scholars, senior managers, financial executives, and audit partners selected through purposive and snowball sampling. Data were collected via semi-structured interviews and analyzed using open, axial, and selective coding.
Findings: The results indicate that organizational risk management based on the Theory of Constraints consists of six main dimensions: causal conditions, central phenomenon, inhibiting factors, contextual conditions, strategic actions, and consequences, with managerial realism, organizational synergy, and focused resource allocation playing pivotal roles in system effectiveness.
Conclusion: The findings suggest that applying the Theory of Constraints enhances decision quality, predictive capacity, sustainable value creation, and organizational coherence, offering an effective framework for managing risk in complex and uncertain environments.
Downloads
References
Alawi, N. A. (2025). Evergreen OT Security Assurance: A Sustainable Approach to OT Cybersecurity Risk Management. https://doi.org/10.2118/224964-ms
Amaroch, S., & Azegagh, J. (2025). The Role of Information Technology and Internal Audit in Risk Management: A Theoretical Approach. International Journal of Research in Economics and Finance, 2(3), 26-38. https://doi.org/10.71420/ijref.v2i3.76
Bagheri, A., Faraji, O., Arabzadeh, M., & Ghodrati, H. (2025). Investigating the Financial Risk Management Model in Knowledge-Based Startup Companies. Journal of Technology in Entrepreneurship and Strategic Management, 4(2), 13. https://doi.org/10.61838/kman.jtesm.4.2.14
Bayi, M., Erfani, A., & Asghaghih, M. (2025). From Conflict to Balance: A Novel Model for Improving Corporate Governance and Risk Management. Quarterly Journal of Financial Economics, 72(19), 68-49. https://sanad.iau.ir/ar/Article/1194196?FullText=FullText
Belhaj, H., & Al Meriouh, Y. (2025). The risk management of information systems in accounting firms: exploratory study of the perceptions of accountants in Morocco. African Journal of Economic and Management Studies. https://doi.org/10.1108/AJEMS-11-2024-0650
Galli, B. J. (2019). How Can Human Resource Management Help the Theory of Constraints. International Journal of Strategic Engineering, 2(1), 1-13. https://doi.org/10.4018/ijose.2019010101
Hazarika, I., Bhandari, R., Rao, P. H., & Porwal, T. (2025). Mapping Resilience Pathways: A Conceptual Framework for Portfolio Risk Management in Microenterprise Lending During Economic Shocks. Enterprise Development and Microfinance, 35(1), 1-20. https://doi.org/10.3362/1755-1986.25-00001
Horvey, S. S., & Odei-Mensah, J. (2025). Enterprise risk management, corporate governance and insurers risk-taking behaviour in South Africa: evidence from a linear and threshold analysis. Journal of Accounting in Emerging Economies, 15(1), 53-83. https://doi.org/10.1108/JAEE-08-2023-0242
Houshmand, A. (2019). Applying Theory of Constraints in Production Planning and Management - A Case Study. Optimization Journal, 1(9), 56-77.
Khalamandro, M. (2025). Risk Management in International Supply Chains: Scenario Planning and Robust Optimization. Підприємництво І Торгівля(44), 169-177. https://doi.org/10.32782/2522-1256-2025-44-19
Khoshrumoini, A., Moosavi Shiri, S. M., & Salehi, M. (2025). Explaining the Pattern of Application of the Theory of Constraints in Iranian Commercial Banks. Strategic Management Accounting, 2(1), 121-136. https://doi.org/10.22034/smajournal.2025.521046.1020
Munyao, D. K., Deya, J., & Odollo, L. (2025). Strategic Risk Management and Performance of Commercial State Corporations in Kenya. International Journal of Social Science and Humanities Research (Ijsshr) Issn 2959-7056 (O) 2959-7048 (P), 3(1), 97-111. https://doi.org/10.61108/ijsshr.v3i1.157
Omrani, R. (2022). A Theoretical Review of Theory of Constraints in Management Accounting and Its Comparison with Traditional Costing, Activity-Based Costing, and Synchronized Systems. Sixth International Conference on Modern Studies in Management and Accounting in Iran, Tehran.
Otku, M. (2018). Comparison of the Theory of Constraints with the Traditional Cost Accounting Methods in Respect to Product Mix Decisions Aydın Adnan Menderes University].
Pacheco, D. A. D. J., Pergher, I., Antunes Junior, J. A. V., & Roehe Vaccaro, G. L. (2018). Exploring the integration between Lean and the Theory of Constraints in Operations Management. International Journal of Lean Six Sigma. https://doi.org/10.1108/IJLSS-08-2017-0095
Potdar, A., & Mahadik, S. D. (2025). A Multi-Agent Approach to Stock Market Prediction and Risk Management. The Voice of Creative Research, 7(2), 203-211. https://doi.org/10.53032/tvcr/2025.v7n2.27
Saki, Ü., & Öztaş, M. (2025). The Effect of risk management on sustainable marketing orientations in fitness businesses. Journal of Sport Sciences Research, 10(1), 96-108. https://doi.org/10.25307/jssr.1601271
Sarhadi, E. (2026). Examining the Effect of Theory of Constraints on Reducing Normal and Abnormal Waste in Tire Manufacturing Companies. Strategic Management Accounting Quarterly, 2(1), 54-69. https://www.smajournal.ir/article_220043_en.html
Seyyedi, A., Saraei, M., & Yari, F. (2021). Performance Evaluation of Accounting Systems Based on Theory of Constraints. Journal of Accounting Knowledge and Research, 6(9), 24-55.
Shekari, H., Hosseini, H., & Jalalian, N. (2025). Developing a Model of the Impact of Knowledge Risk Management on Organizational Sustainability Considering the Mediating Role of Employees' Innovative Behavior. Dynamic Management and Business Analysis, 4(3), 278-295. https://doi.org/10.61838/dmbaj.2025.0403.273
Singh, A. (2025). Predictive Analytics for Risk Management in Finance. International Journal of Advanced Research in Science Communication and Technology, 364-372. https://doi.org/10.48175/ijarsct-28040
Sunaryo, D., Adiyanto, Y., & Nabila, F. (2025). Risk Management and Its Influence on Corporate Performance: A Systematic Literature Review Approach. https://doi.org/10.70062/globalmanagement.v2i1.63
Yāvarī, A., Jabbārī, H., & Panāhiyān, H. (2025). Designing a Credit Risk Management Model with a Pathological Approach to Guarantees and Collaterals of Bank Facilities. Technology in Entrepreneurship and Strategic Management Quarterly, 4(2), 1-22. https://doi.org/10.61838/kman.jtesm.4.2.11
Zhang, X., Zhang, Y., Liu, X., & Wang, R. (2025). Blockchain-Based Intelligent Risk Management Decision Support System for Supply Chain Financing. International Journal of Intelligent Information Technologies (IJIIT), 21(1), 1-24. https://doi.org/10.4018/IJIIT.369153
Zineb, J. (2019). Theory of Constraints: A Literature Review. Social and Behavioral Sciences, 3(10), 45-99.
Živković, S., & Veljković, M. (2025). Psychosocial Risk Management and Stress Control. 8-15. https://doi.org/10.46793/hse25.008z
Downloads
Published
Submitted
Revised
Accepted
Issue
Section
License
Copyright (c) 2025 Hosein Karimkhani, Mohammad Esmaeil Molaei, Shohreh Yazdani (Author)
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
