CHAPTER 2: THEORY AND LITERATURE REVIEW
2.8 Literature Summary
weather, language skills and cultural characteristics. In addition, external risks such as terrorism, diseases and natural disasters were also highlighted.
Emblemsvag (2012) suggested different risk categories such as insufficient production capacity and poor quality control at the suppliers end affecting delivery commitment. He further added that economic indicators, price fluctuations, insolvency of suppliers as well as cross border transactions were also risks that affect delivery performance. Miller and Lessard (2000) suggested risk categories for large engineering projects as being:
Market-related : demand, financial and supply;
Completion : technical, construction and operational;
Institutional : regulatory, social acceptability and sovereign.
Similarly, Dey (2010) suggested the identification of project level risks, work package level risks and activity level risks and couched an appropriate framework which helped in achieving the desired project performance and its objective.
with different legislations and institutions. Manuj and Mentzer (2008) recommended that future research was required to test the proposition that managing and mitigating risks in the supply chain positively affected the performance of the supply chain.
Roberts and Schermer (2011) suggested having a better strategy and that the best chance of mitigating risk on large capital construction projects was for the owner to be actively engaged in sourcing as well as claims management throughout a large capital construction project.
Kausik and Mahadevan (2012) reviewed 32 papers on global sourcing published between 1997 - 2010 and found that none of them were relevant to global sourcing in projects and suggesting the need for studying several aspects for reliable global sourcing. Manuj (2013) identified a dire need to establish a link between superior sourcing risk management and its effect on outcomes.
It was observed that there were distinguishable gaps in the reviewed literature storyline. Table 6 clearly indicates areas that did not have sufficient data and literature on risk management practice in global sourcing especially for large capital project which has a direct impact in achieving the project objective in terms of time, cost and quality.
In view of the gaps identified in Table 6, it is evident that currently no formal risk management framework exists to identify, assess and evaluate risks in global sourcing for large capital projects in order to find out the correlation between risk management for successful global sourcing and project time, project cost and project quality.
Table 6 Literature gap analysis
Topic Theme Author/Source Gaps in research
Global Sourcing
Necessity Birou and Fawcett, (1993), Mohamad et al.,(2009), Monczka
and Trent, (1991,p.4) It has been understood at all
levels.
Trend Manuj (2013), Horn, and Werner (2010), Monczka and Trent (2003), Najafi, Dubois, and Hulthén (2013)
Very few articles on global sourcing related to large capital projects.
Benefits
Monczka and Trent (2003), Monczka and Morgan, (2000), Monczka and Trent (2003), Christopher et al., (2011), Mohamad et al.,(2009), Hauer (2003), Lau and Zhang (2006) and Lynch, (2004)
Benefits are known but not captured as estimated due to risks involved. No framework available to balance benefits and risks.
Challenges Steinle and Schiele, (2008), .
Mainly covers outsourcing pertaining to the retail sector but large capital projects are not included.
Effectiveness Trent and Monczka (2005), Trent and Monczka (2002) Lessons Learnt Trent and Monczka (2002)
Levels of global sourcing Trent and Monczka (2002),Nassimbeni (2006)
Risks in global sourcing Various authors as tabulated in Table 4 Risk factors identified but impact on large capital projects has not been studied.
Analysing risk factors Cousins, Lamming, and Bowen, (2004); Petersen (2013)
Risk management Manuj and Mentzer (2008), Manuj (2013); Thamhain, (2013) Supply chain in retail sectors was covered but large capital projects are not included.
Successful global sourcing for large capital
projects Cooper et al., (2005) Not covered fully in any literature.
Large Capital Projects
Attributes Zidane et al., (2013); Miller and Lessard (2000)
Largely covered in the literature.
Characteristics Zidane et al., (2013);
Cost over run Jergeas, (2008); Flyvbjerg, Skamris Holm, and Buhl (2003);
Rahman, Memon, and Karim (2013)
Risk areas Eweje et al., (2012) Risks related to global sourcing for
large capital projects have not been included.
Topic Theme Author/Source Gaps in research Challenges Eweje et al., (2012);
Badri, Nadeau, and Gbodossou (2013); Rousseau,(2011);
Radosavljevic, Lilic, Curcic, and Radosavljevic, (2009)
Challenges related to global sourcing are not included in project literature.
Realisation of Project success
Olawale and Sun, (2010); Eweje et al., (2012); Miller and Lessard, (2000); Turner(2009); Xue, Turner, Lecoeuvre, and Anbari, (2013)
It has not been linked with global sourcing.
Effect of global sourcing on large capital projects
Jonsson and Fredriksson (2009); Deane, Craighead, and Ragsdale,(2009); Christopher et al. (2011);Tummala and Schoenherr (2011); Roberts and Schermer (2011)
Impact of sourcing process on project performance identified but impact of global sourcing on project performance is not included.
Sourcing philosophy and its effect on project performance
Eriksson and Westerberg (2011); various other authors work stipulated in Table 5.
Risk impact of global sourcing on large capital projects
Thamhain (2013); Thamhain and Skelton (2007); Cooper et al., (2005)
No framework suggested for successful global sourcing in large capital projects.
Project Management Institutes
PMBOK Project Management Body Of Knowledge
Don’t have risk management framework for global sourcing
PRINCE2 Office of Commerce Government
Rules of risk management in
successful global sourcing for large capital projects
Risk management framework
Tummala and Schoenherr (2011);Christopher et al.,(2011);Manuj(2013); Miller and Lessard, (2000); (Mak and Rao Tummala, 2001); Routroy and Pradhan (2013);
Christopher and Peck, (2004); Manuj and Mentzer (2008)
Available risk management frameworks are related to supply chain in retail/FMCG sector but no work done on risk management for global sourcing on large capital projects.
Its effect on project time, cost and quality
No research done in past to measure the correlation between successful global sourcing and project time, cost and quality.
Correlation
Relations between risk management in global sourcing and Project time , cost and quality
No research done in the past.