Subcontracting Risk Approaches in Portugal’s Moulds and Plastics SME Landscape
Keywords:
Enterprise Risk Management, Subcontracting, Moulds and Plastics Industry, Risk Mitigation, Business Ethics, Power InteractionsAbstract
The Portuguese Moulds and Plastics industry is prominent in the national landscape, ranking as the third largest exporting sector in Europe and the eighth largest globally, and having most of its output destined for export markets. In the case at hand, characterised by Small and Medium Enterprises (SMEs) dominated by large businesses, problems emerge in subcontracting. This research aims to identify the risks and their mitigation strategies associated with subcontracting in SMEs within the industry. Using a qualitative case study approach, supported by Atlas.ti qualitative data analysis software and semi-structured interviews with experienced executives in the sector, the study categorises recurring subcontracting risks, namely geopolitical, economic, operational and legal, endured by SMEs, along with the mitigation strategies to address these challenges. The findings reveal Enterprise Risk Management’s (ERM) inadequate implementation at the national level, which is reflected in insufficient risk reporting and a lack of literature. The study underlines the need for a comprehensive and integrated ERM approach tailored to the specific needs of the Portuguese Moulds and Plastics sector.
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