Vietnam Outsourcing Risks Management

Abstract

<p class="MsoNormal" style="text-align: justify; margin: 0in 0.5in 0pt; mso-pagination: none;"><span style="color: black; font-size: 10pt; mso-themecolor: text1;"><span style="font-family: Times New Roman;">The exploratory qualitative research study relied on 32 available literatures from 1983 to 2008 to explore the outsourcing risk to the supply chain management infrastructure within the context of an alliance relationship in which the multinational corporation’s manufacturing is outsourced to Vietnam business partners. The paper attempted to define the impact of the <span style="mso-bidi-font-weight: bold;">Foreign Corrupt Practices Act (</span>FCPA) legislation governing the United States’ Multi National Corporations (MNC), roles of culture, ethicality, and social responsibility principles in assessing and mitigating global risks. The paper discussed ethical leadership behavior in risk management. In addition, the paper presented strategies to integrate a r<span style="mso-bidi-font-weight: bold; mso-bidi-font-style: italic;">elational exchange </span>model and Cost-of-Risk Analysis (CORA) two-step process for cost-benefit evaluation for mitigating global supply chain management risks. The paper also highlighted financial risk management strategies using a net present value (NPV) of at least zero to embark on expenditure streams. Recommendations, summary and conclusion were also presented. </span></span></p>

Analysis and management of risks associated with outsourcing in China

“…This is a significant practical contribution of this paper, as, to our knowledge, there have been no prior complete and comprehensive studies that addressed, at the same time, the risks associated with manufacturing outsourcing to emerging countries, the sources of these risks and the practices used to mitigate the risks and reduce their occurrence. The studies that treated the risks inherent to subcontracting manufacturing activities (Gandhi et al , 2012; Lam, 2011; Khan et al , 2008; Elmuti and Kathawala, 2000), as stated earlier, did not analyse the important issue of mitigating these risks. Moreover, most of the research papers on outsourcing strategy risks were conducted in the fields of business services and information technology (Thakurta and Rao, 2015; Xu and Wang, 2013; Kumar-Jain and Natarajan, 2011; Nassimbeni et al , 2011; Xu and Wang, 2013).…”

“…In fact, most of the research papers studied risks relating to outsourcing of services, such as software development and IT services (Thakurta and Rao, 2015; Kumar-Jain and Natarajan, 2011; Nassimbeni et al , 2011), logistics services (Xu and Wang, 2013) and facility management services (Ikediashi et al , 2012). The few papers that examined the risks inherent to subcontracting manufacturing activities, such as the ones conducted by Gandhi et al (2012); Lam (2011); Khan et al (2008) and Elmuti and Kathawala (2000), did not thoroughly address the issue of managing these risks. In fact, in their research, Gandhi et al (2012) focused mainly on the identification and the prioritisation of outsourcing risks and on measuring the probability of their occurrence and their impact.…”

“…In fact, in their research, Gandhi et al (2012) focused mainly on the identification and the prioritisation of outsourcing risks and on measuring the probability of their occurrence and their impact. Similarly, Lam (2011); Khan et al (2008) and Elmuti and Kathawala (2000) analysed these risks, but did not study practices used by firms to manage them.…”