For instance by improving it planning and it

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organization‟s IT structure could be a good instrument. For instance, by improving IT planning and IT acquisition (IT structure), organizations could identify, implement, and maintain new technologies which is a great help for ERM systems to recognize, analyze, response, and monitor events better than their competitors (Yaraghi and Langhe, 2011) and help ERM system to enhance competitive advantage of the institution. From another perspective, based on contingency theory (system approach), the organizations are comprised of a multitude of subsystems which have interrelationship with each other. In other words, organizations are open systems with multiple interactive parts, consequently, they cannot be thought of in unsophisticated one-dimensional terms. Based on this approach, researchers tend to be more concrete, emphasize more precise features of organizations, and depend upon the patterns of relationships among subsystems (Reinking, 2012). According to the contingency theory, there is no valid bivariate relationship between two variables and the effect of the independent variable on dependent variable depends upon some third variable (interaction, moderator or mediator). It means that the relationship between two variables is part of a large causal system involving other variables so that the valid generalization takes the form of trivariate or more relationships. A bivariate relationship is too simple to capture the law like regularity connecting. Therefore, a more complex casual statement is required (Donaldson, 2006). Consequently, this study used a system approach of contingency theory to explain the effect of different dimensions of IT on ERM relationship with competitive advantage as a moderator. From all the above discussion, it can be formulated that, IT has a positive effect on competitive advantage, however, empirical studies are limited. In addition, among them, none had investigated the links between ERM, IT, and competitive advantage. As competitive advantage is supported by IT (Feeny and Ives, 1990; Hunter, 2003, Leornard-Barton, 1995; Lai et al ., 2006; Okumus, 2013; Cakmak and Tas, 2012; Gunasekaran et al ., 2017, Bhatt and Grover, 2005) and considering the fact that IT, mostly, has enhanced ERM system (Yaraghi and Langhe, 2011, Ranong and Phuenngam, 2009, Arena et al ., 2010, Elahi, 2013), it could be hypothesized that companies with advanced IT level displayed stronger effect of ERM on competitive advantage. This notion has been missed by previous scholars, and therefore, this study had gathered sufficient data to bridge this research gap by considering IT as an influential factor upon the ERM-competitive advantage link. Unfortunately, previous studies also suffer from limited wholesome measurements of IT and ERM. Simply put, the essential requisite is an effective measurement for all constructs related to both IT and ERM. As such, the present study has considered IT and ERM implementation in a way that has yet to be addressed. In precise, this study measured both dimensions of IT: IT strategy (IT environment scanning, and strategic use of IT) and IT structure (IT planning and control, as well as IT acquisition and implementation), which had been disregarded in prior researches. The measurement of ERM comprised
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