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

The purpose of this article is to compare academic research with industry practice in the area of global sourcing risk management and suggest directions for future research to help bridge the gap between the theory and the practice of global sourcing risk management. An extensive review of literature is employed to understand the current state of theory. Reports from supply chain audits of ten leading US companies are analyzed to document the current state of practice. Prominent themes from the two streams are compared to identify specific gaps. Several avenues for further research are identified based upon the areas of disconnect between theory and practice. Major findings and relationships identified contribute to building an integrated theory of global sourcing risk management.