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Managing Risk in Virtual Enterprise Networks: Implementing Supply Chain Principles

Book Description

Managing Risk in Virtual Enterprise Networks: Implementing Supply Chain Principles aspires to set a point-of-reference for scholars and researchers in the fields of Virtual Enterprises and Supply Chain Management who are interested in studying the Risk Management dimension in a cross-disciplinary fashion by applying new ideas and synthetic thinking in already well established concepts. Furthermore, this valuable reference aims to attract both graduate and post-graduate students studying the Risk Management discipline.

Table of Contents

  1. Copyright
  2. Editorial Advisory Board
  3. List of Reviewers
  4. Foreword
  5. Preface
    1. INTRODUCTION
    2. BOOK STRUCTURE AND CONTRIBUTIONS
    3. AIM OF THE BOOK AND TARGET AUDIENCE
    4. REFERENCES
  6. Acknowledgment
  7. 1. Concepts, Methods and Approaches
    1. 1. A Conceptual Framework for Risk and Vulnerability in Virtual Enterprise Networks
      1. ABSTRACT
      2. INTRODUCTION
      3. BACKGROUND
        1. Virtual Enterprises: A Special Form of Cooperative Strategy
        2. The Concept of Virtual Enterprises in the Past
        3. The Concept of Virtual Enterprises Today
        4. Risks in Virtual Enterprises
      4. FUNDAMENTALS OF A VEN
        1. Four Basic Compositions of a VEN
        2. Roles in a VEN
      5. FROM A SUPPLY CHAIN TO A VEN
      6. FROM SUPPLY CHAIN RISK TO VEN RISK
        1. The Risk Concept
        2. Business Risks
        3. Basic Risk Management
        4. Supply Chain Risk
        5. VEN Risk
        6. Supply Chain Vulnerability and VEN Vulnerability
        7. Supply Chain Networks vis-à-vis VENs
      7. STRATEGIES FOR MANAGING VEN RISKS
      8. VEN CHARACTERISTICS AS DISRUPTION IMPACT PARAMETERS
      9. A CONCEPTUAL FRAMEWORK FOR VEN RISK AND VULNERABILITY
      10. VEN RISK MANAGEMENT VIS-À-VIS BUSINESS CONTINUITY MANAGEMENT
      11. VEN MANAGEMENT
        1. VEN Leadership Roles
        2. VEN Life Cycle Challenges
        3. Knowledge Gap
        4. VEN Risk Management
      12. FUTURE RESEARCH DIRECTIONS
      13. CONCLUSION
      14. REFERENCES
      15. ADDITIONAL READINGS
    2. 2. Managing Supply Chain Risks: Understanding the Impact of Network Characteristics
      1. ABSTRACT
      2. INTRODUCTION
      3. BACKGROUND TO SUPPLY CHAIN RISK
        1. Differentiating Relational Risk from Supply Chain Risk
        2. A Network Understanding of Supply Chain Risk
          1. Framework of Determinants
        3. Individual Level Determinants
          1. Organisational Slack
            1. Node Criticality
            2. Node Centrality
        4. Dyadic Level Determinants
          1. Geographical Distance
          2. Distance and Redundancy
        5. Global Level Determinants
          1. Number of Nodes7
          2. Network Architecture
      4. FUTURE RESEARCH DIRECTIONS
      5. CONCLUSION
      6. ACKNOWLEDGMENT
      7. REFERENCES
      8. ADDITIONAL READINGS
      9. ENDNOTES
    3. 3. Mitigating Risk through Building Trust in Virtual Enterprise Networks
      1. ABSTRACT
      2. INTRODUCTION
      3. BUSINESS CHALLENGES
        1. Globalization
        2. Core Competencies and Outsourcing
        3. Customization
        4. Technology Impact
      4. VIRTUAL ENTERPRISES AS NETWORKED BUSINESS
        1. Virtual Enterprises: Brief Introduction
        2. VE Characteristics and Challenges
      5. TRUST IN VIRTUAL ENTERPRISES
        1. The Role of Trust in VEs
      6. CONDITIONS FOR TRUST FORMATION IN VES
        1. Mutual Need
        2. Shared Objectives
        3. Commitment
        4. Interpersonal Relationship
      7. BUILDING TRUST IN VES
        1. Good Reputation
        2. Integrity
        3. Concern
      8. RELATION BETWEEN TRUST & RISK IN VES
        1. Risk in VEs
      9. TRUST AS A DETERMINANT OF RISK
      10. CONCLUSION
      11. FUTURE RESEARCH DIRECTIONS
      12. REFERENCES
      13. ADDITIONAL READINGS
    4. 4. Managing Risk in Virtual Enterprise Networks: A Supply Chain Innovation Perspective
      1. ABSTRACT
      2. INTRODUCTION
      3. BACKGROUND
        1. Virtual Organizations
        2. The Main Characteristics of a VEN are Summarized byBarbini and D'Atri (2005) as Follows:
      4. ISSUES AFFECTING VIRTUAL ENTERPRISE NETWORKS
      5. RISKS ASSOCIATED WITH VIRTUAL ENTERPRISE NETWORKS
      6. SUPPLY CHAIN RISKS AND INNOVATION
        1. Supply Chain Risks
        2. Supply Chain Innovation
      7. MANAGING SUPPLY CHAIN RISKS THROUGH INNOVATION
      8. MANAGING RISKS IN VIRTUAL ENTERPRISE NETWORKS
      9. FUTURE RESEARCH DIRECTIONS
      10. CONCLUSION
      11. REFERENCES
      12. ADDITIONAL READINGS
    5. 5. Knowledge Assets in Virtual Enterprises: Sources of Risk and Management Issues
      1. ABSTRACT
      2. INTRODUCTION
      3. BACKGROUND: KNOWLEDGE AS AN ECONOMIC ASSET FOR VES
        1. A Functional Definition of VE
        2. VEs as Knowledge-Based Organisations
      4. MANAGING KNOWLEDGE IN VES: FOUNDATIONS
        1. Knowledge Flows and Knowledge Exchanges
        2. Knowledge as an Economic Asset
        3. Knowledge Markets
      5. KNOWLEDGE FLOWS AND RELATED RISK IN A VE
      6. MANAGING THE RISK OF KNOWLEDGE FLOWS: PRACTICAL LESSONS
        1. Methodology and Research Questions
        2. The Leading Node and the ERP Product
        3. Cognitive Vertical Integration vs. Risk of Networking
        4. Risk of Knowledge Focalisation
        5. Private and Public Knowledge
        6. Risk of Instability of the VE
      7. FUTURE RESEARCH TRENDS
      8. CONCLUSION
      9. ACKNOWLEDGMENT
      10. REFERENCES
      11. ADDITIONAL READING
    6. 6. Managing IT Risks in Virtual Enterprise Networks: A Proposed Governance Framework
      1. ABSTRACT
      2. INTRODUCTION
      3. BACKGROUND
      4. IT CHALLENGES FOR VIRTUAL ENTERPRISE NETWORKS
      5. A TAXONOMY OF IT RELATED RISKS IN VENS
        1. Security Risks
        2. The Erosion of the Network Perimeter
        3. Limitations of Security and Access Control Solutions
        4. Authentication and Identity Guarantee
      6. HUMAN RISKS
        1. Insiders' Threats and Hacking
        2. Malicious Access of Temporary Workers
        3. Intentioned Outsiders' Threats
        4. Insufficient Accountabilities
      7. INTEGRATION RISKS
        1. Dispersed Geographies and Regulations
        2. Lack of Interoperability
        3. Inefficient Nodes' Cooperation
      8. BUSINESS RISKS
        1. Financial Loss
        2. Environmental Uncertainty
        3. Reputation and Image Distortion
        4. Technical Risks
        5. The Internet Protocol (IP) Architecture Shortages
        6. Network Parameters Drift
        7. Malfunctioning and Software Bugs
      9. RISK ARGUMENTS AND VULNERABILITIES
      10. VENS CHARACTERISTICS AND TRENDS
      11. HANDS ON RISK MITIGATION
      12. ENHANCING VENS RISK MANAGEMENT
        1. Traffic Management
        2. Threat Controls
        3. Security Management
        4. Endpoint Security
      13. NETWORK AND INFORMATION METRICS
      14. IT AND RISK REGULATORY FRAMEWORKS
      15. A PROPOSED RISK GOVERNACE FRAMEWORK FOR VENS
      16. RISK PRE-ASSESSMENT PHASE
      17. THE RISK MANAGEMENT PHASE
        1. Risk Characterization
        2. Response Categorization
        3. Response Planning
      18. RISK CONTROL PHASE
      19. THE COMMUNICATION PLATFORM
      20. FUTURE RESEARCH DIRECTIONS
      21. CONCLUSION
      22. REFERENCES
      23. ADDITIONAL READING
    7. 7. Modeling and Simulating Disruptions and other Crisis Events in Virtual Enterprise Networks
      1. ABSTRACT
      2. INTRODUCTION
      3. MODELING APPROACH
        1. Step 1: Problem Formulation
        2. Step 2: Specification of Dependent and Independent Variables
        3. Step 3: Conceptual Model Development and Verification
        4. Step 4: Data Collection
        5. Step 5: Verification of Computer Model
        6. Step 6: Model Validation
        7. Step 7: Model Execution
        8. Step 8: Results Analysis
      4. CASE STUDY EXAMPLE
        1. Step 1: Problem Formulation
        2. Step 2: Specification of Dependent and Independent Variables
        3. Step 3: Conceptual Model Development and Verification
        4. Step 4: Data Collection
        5. Step 5: Verification of Computer Model
      5. Step 6: Model Validation
        1. Step 7: Model Execution
        2. Step 8: Data Analysis
      6. CONCLUSION
      7. FUTURE RESEARCH DIRECTIONS
      8. REFERENCES
      9. ADDITIONAL READINGS
    8. 8. A Theoretical Framework for a Simulation-Based Analysis of Supply Chain Risk Management
      1. ABSTRACT
      2. INTRODUCTION
      3. BACKGROUND
      4. RISK AND UNCERTAINTY
      5. RISKS WITHIN SUPPLY CHAINS
      6. SUPPLY CHAIN RISK MANAGEMENT
      7. SIMULATION-BASED RISK MANAGEMENT
      8. SUPPLY CHAIN RISK MANAGEMENT FRAMEWORK
      9. SUPPLY CHAIN PERFORMANCE
      10. SUPPLY CHAIN RISK MEASUREMENT
        1. Expected Total Costs
        2. Reliability Analysis
        3. Time Series Monitoring
      11. AN EXAMPLE OF SIMULATION-BASED SUPPLY CHAIN RISK ANALYSIS
      12. SUPPLY SYSTEM DETERMINATION
      13. SIMULATION MODEL
      14. SIMULATION SCENARIOS
      15. RESULTS
      16. FUTURE RESEARCH DIRECTIONS
      17. CONCLUSION
      18. REFERENCES
      19. ADDITIONAL READINGS
  8. 2. Models and Applications
    1. 9. Aligning Product Design with the Supply Chain: Towards a Responsive and Resilient Enterprise
      1. ABSTRACT
      2. INTRODUCTION
      3. THE IMPORTANCE OF DESIGN: A CREATIVE TOOL TO ENHANCE COMPETITIVE ADVANTAGE
      4. ALIGNING PRODUCT DESIGN WITH THE SUPPLY CHAIN
      5. TOWARDS A RESILIENT SUPPLY CHAIN: MANAGING SUPPLY CHAIN RISKS
      6. TOWARDS A RESPONSIVE SUPPLY CHAIN: MANAGING AGILITY AND SUPPLY CHAIN RISKS
      7. RESEARCH THEMES EMERGING FROM THE LITERATURE REVIEW
        1. Conceptual Conclusions
      8. METHODOLOGY
      9. PRODUCT DESIGN STRATEGY
      10. SUPPLY CHAIN CONFIGURATION
      11. SUPPLY CHAIN RISK MANAGEMENT
      12. SUPPLY CHAIN AGILITY
      13. THE PRODUCT DESIGN-SUPPLY CHAIN INTERFACE
      14. SOLUTIONS AND RECOMMENDATIONS
      15. CONCLUSION
      16. FUTURE RESEARCH DIRECTIONS
      17. REFERENCES
      18. ADDITIONAL READING
    2. 10. Flexible Supply Chains: A Boost for Risk Mitigation?
      1. ABSTRACT
      2. INTRODUCTION
      3. FLEXIBLE COMPANIES
      4. CONCEPTUAL MODEL OF SUPPLY CHAIN FLEXIBILITY
        1. The Proposed Framework
      5. RISK MITIGATION IN A FLEXIBLE SUPPLY CHAIN
      6. KEY PERFORMANCE INDICATORS OF SUPPLY CHAIN FLEXIBILITY
      7. EMPIRICAL EVIDENCE REGARDING THE IMPLEMENTATION OF FLEXIBILITY BEST PRACTICES
        1. Study Methodology
        2. Sector Analysis
        3. Data Gathering
        4. Level of Implementation Importance
        5. Descriptive Statistics
        6. Correlation Analysis
        7. Regression Analysis
      8. CONCLUSION
      9. FUTURE RESEARCH
      10. REFERENCES
      11. ADDITIONAL READING
    3. 11. Managing the Risk of Knowledge Transfer in Outsourcing Organizations
      1. ABSTRACT
      2. BACKGROUND
      3. INTRODUCTION
      4. OUTSOURCING AND RISK MANAGEMENT
      5. KNOWLEDGE MANAGEMENT: THE SOCIAL DIMENSION
      6. KNOWLEDGE MANAGEMENT IN OUTSOURCING ORGANIZATIONS
      7. RESEARCH METHODOLOGY AND DESIGN
      8. OUTSOURCING PRACTICES IN THREE MEDIUM SIZED PHARMACEUTICAL INDUSTRIES
      9. ORGANIZATIONAL IDENTITIES
      10. INDIVIDUALS' IDENTITIES
      11. DISINTEGRATION OF COMMUNITIES AND SOCIAL CAPITAL PATHOLOGY
      12. ADDICTION TO OUTSOURCING: LOSING THE ABSORPTIVE CAPACITY
      13. SECONDARY EFFECTS: EXPLORING THE VICIOUS CYCLE OF KNOWLEDGE DEPENDENCE
      14. CONCLUSION
      15. FUTURE RESEARCH
      16. REFERENCES
      17. ADDITIONAL READING
    4. 12. Upgrading Effectiveness in VEs: Decision Framework Based on the Benefits, Opportunities, Costs and Risks (BOCR) Model
      1. ABSTRACT
      2. INTRODUCTION
      3. BACKGROUND - THEORETICAL FRAMEWORK
        1. Supply Chain - General Concepts
        2. Networking and Virtual Enterprises
        3. Clusters and Collaborative Commerce
        4. Multicriteria Decision Analysis and Supplier Selection
        5. Analytic Network Process with Benefits, Opportunities, Cost and Risks
      4. CASE STUDY: THE PARAPHARMACEUTICAL COLLABORATIVE CLUSTER
        1. Purchasing Processes
        2. IT Support Activities
        3. Promotion Activities
        4. Value-Adding Activities
        5. Management of Risk within the Collaborative Cluster
        6. Problem Description
        7. Proposed ANP - BOCR Model
      5. CONCLUSION
      6. FURTHER RESEARCH DIRECTIONS
      7. ACKNOWLEDGMENT
      8. REFERENCES
      9. ADDITIONAL READINGS
    5. A. APPENDIX
    6. 13. Risk Assessment in Virtual Enterprise Networks: A Process-Driven Internal Audit Approach
      1. ABSTRACT
      2. INTRODUCTION
      3. BACKGROUND
      4. A PROPOSED METHODOLOGY FOR PROCESS-DRIVEN INTERNAL AUDIT
        1. Stage 1: Strategic Analysis
        2. Stage 2: Process Analysis
        3. Stage 3: Process Risk Assessment
        4. Stage 4: Controls Assessment - Audit Execution
      5. A SUPPORTIVE ENTERPRISE MODELLING TOOL
      6. CASE STUDY: PROCESS-DRIVEN INTERNAL AUDIT IN THE SUPPLY CHAIN IN A VIRTUAL ENTERPRISE NETWORK
      7. FUTURE RESEARCH DIRECTIONS
      8. CONCLUSION
      9. REFERENCES
      10. ADDITIONAL READINGS
    7. B. APPENDIX A
    8. C. APPENDIX B
    9. D. APPENDIX C
    10. 14. Avoiding Risks Related with Strategic Pricing in Virtual Enterprise Networks: An Agent Based Approach
      1. ABSTRACT
      2. INTRODUCTION
      3. BACKGROUND
      4. PREDICTING DEMAND VIA CONSUMER PERCEPTION ANALYSIS
      5. AGENT-BASED MODELING AND SIMULATION
      6. DATA SOURCES, DATA GATHERING & ALGORITHMIC TECHNIQUES
      7. SPECIFIC DETAILS ON MINING CONSUMER DEMAND AND PERCEPTIONS USING AMAZON WEB SERVICES
      8. ACTUAL PRODUCT SALES APPROXIMATION
      9. LEARNING THE STATISTICAL DISTRIBUTIONS THAT POSITION PRODUCTS ON THE CONSUMER PERCEPTUAL MAP
        1. Simulated Annealing
        2. Genetic Algorithms
        3. Tabu Search
        4. Scatter Search
      10. ALGORITHMIC DETAILS
      11. JUSTIFICATION OF THE ALGORITHM
      12. CASE STUDIES
        1. Case Study 1: The MP3 Player Market
        2. Case Study 2: The Smart-Phone Market
      13. CONCLUSION
      14. FUTURE RESEARCH DIRECTION
      15. REFERENCES
      16. ADDITIONAL READING
  9. Compilation of References
  10. About the Contributors