SMEs Risk Management in Relationships: A Multiple Case Study of Swedish SMEs Operating with Global Supply Chains

Abstract

As firms seek to expand their supply chains, insufficient emphasis has been put on how these firms can manage their supplier relationships. Notably for SMEs that lack resources compared to MNCs. As these SMEs seek suppliers, they are exposed to risks associated with the relationship with these suppliers. Therefore, this thesis will investigate what is provided in theory for SMEs to manage these risks while comparing it with empirical data gathered from interviews. This will be done through a multiple case study and research approach following the structure of qualitative research. The aim is to investigate what can be added to research and what key takeaways SMEs can utilize in managing their supplier relationships in global supply chains to avoid damaging risks. This foundation led to the results that communication, realization of size, resource constraints and risk management strategies were the most significant aspects from theory and empirical data. These results indicate that SMEs have to maintain and seek transparency with their supplier relationships, while also striving to reach a flexible approach, and implementing a tailored risk management framework suited for their business. However, as the investigation is limited to Swedish SMEs, future potential research could also include exploring the findings in context with MNCs or a clearer distinction between small and medium sized firms.