Navigating global supply networks: a strategic framework for resilience in the apparel industry

Abstract

This study presents a comprehensive and integrated framework of global supply network risk structures based on agency theory, which contributes to the literature on global supply chain risk management. The research was conducted using a combination of in-depth interviews with eight management executives from four apparel businesses and a large-scale survey involving 253 companies operating within the Vietnamese apparel supply chain, especially those that execute partial free-on-board (partial FOB) orders. The empirical evidence obtained from the research demonstrated that corporate performance is highly vulnerable to various types of supply chain risks, such as logistics, information, operational, supply, demand, and external risks. To enhance supply chain resilience during disruptive events such as the COVID-19 pandemic, the US-China trade war, and Ukraine-Russia conflicts, the study recommends the adoption of such strategies as diversified sourcing, supply chain collaboration and integration, and Industry 4.0 technology adoption. For global apparel firms that relocate their offshore manufacturing from China to Vietnam, it is important to identify these global supply chain risks and employ risk management strategies to ensure the efficient and effective functioning of the supply chain during disruptions.