Managing Risk in Virtual Enterprise Networks

A virtual enterprise is a temporary relationship of participating members, which is formed for a specific objective or project and dissolved once the objective or project is fulfilled. The temporary nature of the relationship and the informal structure of the network can be the source of various challenges and risks. This chapter reviews the literature and investigates the risks associated with Virtual Enterprise Networks. It also argues that innovation is very important for managing/ mitigating risks and supports this argument by proposing a framework which defines a risk mitigation process under the perspective of supply chain innovation. This chapter also discusses ways to innovate within the virtual enterprise network and facilitating newfound innovation. The chapter ends with a brief discussion of future research areas and items of conclusion

Path analysis model for supply chain risk management

The purpose of this paper is to develop a model to understand the relationship of supply chain risk sources, risk drivers, and risk mitigation strategies to the overall risk exposure of the firm and to validate the model empirically. An attempt has been made to determine the major contributors of supply chain risk as viewed by automotive professionals in today's competitive market. This study empirically validates the effects of the three critical constructs on overall supply chain risk exposure. The limitations of this study can be seen in the use of perceptual data from single informants and the focus on automotive firms in a single country. The detailed operationalization of the constructs sheds further light on the major risk sources, drivers, and mitigation strategies in supply chain networks. Clear evidence of proactive strategies in mitigating risks provides managers with a business case to invest in such initiatives