Risk Management in Global Sourcing:: Comparing the Business World and the Academic

World

Abstract

The aim of this clause is to compare academic research with diligence practices in the field of
global sourcing risk management and propose Directions for future research to help bridge
the crack between the theory And the pattern of global sourcing risk management. Reports
from supply chain audits often leading US companies are analyzed Document the
current province of practice.

Introduction:-
Supply chains face risks related to currency fluctuations, political changes, Economic changes, long
and varying lead times, inventory, quality, and Intellectual property (Khan and Burnes 2007; Manuj and
Mentzer 2008a; Rao And Goldsby 2009). ). Supply chain risk management topics have been
widelyresearched by academics—conceptually, theoretically, and empirically—over the past few years
(Jüttner, Peck, and Christopher 2003 ; Khan and Burnes2007 ) and include, among others, topics such as
supply chain risks (Rao andGoldsby 2009 ), risk management process and strategies (Christopher andLee
2004; Jüttner, Peck, and Christopher 2003 ; Manuj and Mentzer 2008a ,2008b ), and risk-related
outcomes (Wagner and Bode 2008 ). Academics and practitioners are interested in further
understanding of Risk management for several causes. Foremost, at that
place are various openings in the- Area of supply chain risk management, most recently
summarized by Pfohl, Köhler, and Thomas (2010). Second, while the literature has
made advances- Mint in supply chain risk theory development, beyond a few case
studies Published in academic journals. This article centers on the Specific Subarea of global
sourcing for two causes. First, prior research Aug- Fasts' that a majority
of genes connected with supply chain risk identification Are related to sourcing uncertainties
(Zsidisin et al. 2004 ). Second, recent business trends indicate if nance and
pro- Curement executives expect global sourcing activities to increase over the Next few years
(Minter 2009; Paul, Ramesh, and Srivastava 2010)

Methodology
This segment depicts the procedures for review of academic literature, Analysis of industry practice
and comparison between the two streams of Knowledge.

Review of Academic Literature

To acquire a thorough discernment of the extant literature on the subject of Global sourcing risk
management, an extensive review was set about Beginning with the Journal of Business
Logistics,Transportation Journal, the International Journal of Physical Distribution and Logistics
Management. The articles were reviewed to ascertain That they explicitly addressed supply risks. The
articles were qualitatively Analyzed using an approach similar to “grounded theory” methodology
as Advocated by Glaser (1978) and Glaser and Strauss (1967). Additional literature was reviewed based
on the citations in the reviewed Articles and the concepts and constructs discovered during
the inspection. Every bit Concepts and constructs emerged, they were grouped together into
broad Categories. These broad categories evolved into major subjects. The recap Identified two major
themes: types of dangers and the process of risk management. The aim of this research was to identify
common topics related To provide risk management across a diversity of industries; therefore,
from This larger group of companies, audit reports of companies with procurement operations.

Theory of Global Supply Risk Management

The inquiry in the field of risk management includes theory-construction And theory-testing
approaches employing varied methodologies such as Casestudies, established theory, surveys,
literature reviews, and conceptual Model development. There has been a steady increase in
articles linked To the topic (Paulsson 2004; Rao and Goldsby 2009), The major topics that came
out from a review of the list- Erasure are types of risks, risk management strategies, and several
other Observations.

Supply Risk Management Strategies

Supply chain risk management should be handled at strategic, functional, And tactical levels. It includes
preventative approach or designing supply Chains with built-in risk tolerance and interceptive approach
or taking Damage when undesirable events happen (Gaonkar and Viswanadham 2007).

It must be noted that the insights of the real world are based on a limited sample of ten companies.
Although over 400 interviews form the basis of audit reports and the companies are leaders in their
respective fields and huge financial entities, it is reasonable to assume that there are companies

practicing more advanced risk management. If such companies could be identified and convinced to
share some of their risk management practices, it would greatly benefit academics and practitioners.

Conclusion:-

It must be noted that the insights of the real world are based on a limited sample of ten companies.
Although over 400 interviews form the basis of audit reports and the companies are leaders in their
respective fields and huge financial entities, it is reasonable to assume that there are companies

practicing more advanced risk management. If such companies could beidentifi ed and convinced to
share some of their risk management practices, it would greatly benefit academics and practitioners.