• ISSN: 2301-3567 (Print), 2972-3981 (Online)
    • Abbreviated Title: J. Econ. Bus. Manag.
    • Frequency: Quarterly
    • DOI: 10.18178/JOEBM
    • Editor-in-Chief: Prof. Eunjin Hwang
    • Executive Editor: Ms. Fiona Chu
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HOME > Archive > 2018 > Volume 6 Number 4 (Nov. 2018) >
JOEBM 2018 Vol.6(4): 167-174 ISSN: 2301-3567
DOI: 10.18178/joebm.2018.6.4.569

An Investigation of Foreign Exchange Risk Management by New Zealand and Vietnamese Exporting Small and Medium Sized Enterprises

Vu Hung Dang and Valerie Lindsay

Abstract— Our exploratory qualitative study investigates forex risk management in New Zealand and Vietnamese exporting SMEs by examining the determinants, as well as the firms’ hedging decisions. The findings shed new light on SMEs’ forex risk management practices, and how these differ in institutionally different country contexts. Both Vietnamese and New Zealand firms increased the use and formality of hedging techniques in accordance with increases in forex exposure. Although, not surprisingly, SMEs in both countries gained more experience to deal with forex risk as their level of internationalization increased, they drew on different perceptions about forex risk management. New Zealand SMEs were prepared to allocate resource towards forex risk management and sought a dynamic strategy to manage this risk – suggesting an economic-oriented approach. On the other hand, Vietnamese SMEs were passive when dealing with forex risks and hesitated over resource allocation towards its management - suggesting a transaction-oriented approach.

Index Terms— Forex risk management, hedging techniques, internationalization, resources allocation.

Vu Hung Dang is with An Giang University, An Giang 880000 Vietnam (e-mail: dhvu@agu.edu.vn). Valerie Lindsay was with Victoria University of Wellington, Wellington 6012, New Zealand. She is now with American University of Sharjah, PO Box 26666 United Arab Emirates (e-mail: vlindsay@aus.edu).

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Cite: Vu Hung Dang and Valerie Lindsay, "An Investigation of Foreign Exchange Risk Management by New Zealand and Vietnamese Exporting Small and Medium Sized Enterprises," Journal of Economics, Business and Management vol. 6, no.4, pp. 167-174, 2018.

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