Risky Business : A qualitative study of how Swedish apparel companies manage supplier risks in China

Abstract: The purpose of this thesis is to provide companies with an understanding of how Swedish apparel companies manage supplier risks connected to production activities located in China. In order to conduct this study, previous literature regarding supply chain risk management has been analysed in relation to the empirical data collected during this study. In order to answer the research question, a qualitative method and a deductive approach have been used. A qualitative method was chosen as a deeper understanding of the phenomenon supply chain risk management was desired. A deductive approach was further chosen as the topic was acknowledged by reading previous research, which clearly emphasized existing research gap within supply chain risk management.  The literature review presented in this thesis regards the importance of managing a global supply chain and the risks connected to a global supply chain. Presented is also a process of how to manage risks, and the process consists of three steps, which further provides alternative strategies in order to conduct each step. Further, the reasons why Swedish companies outsource production activities to China and the importance of supply chain risk management in China is presented. The literature review is finalized with a conceptual framework summarizing the chapter. Differences and similarities between collected empirical data and the literature review is discussed and analysed in the analysis chapter. The following chapter provides conclusions answering the research question as well as theoretical and practical implications. This thesis has contributed with filling the research gap regarding supply chain risk management, this as the thesis focuses on one specific market and one specific industry. A new framework has been constructed based on previous research and the empirical findings. This framework also contributes to the practical implications as companies with a desire to outsource to China can use the process presented in the framework. The process includes three steps which will facilitate for companies to manage supplier risks in China. This thesis has also contributed to create an understanding for companies regarding the great importance of supply chain risk management. Therefore, this thesis can contribute with valuable information for Swedish apparel companies wanting to include supply chain risk management when outsourcing to China.