A taxonomy of international manufacturing networks

Abstract

Manufacturing firms with multiple product groups do not need to involve all factories in the production of all product groups. Some factories may specialize on a small set of products, while others participate in the manufacturing of a broader set of products. However, current theories on international manufacturing networks do not explain in detail how organizations design international manufacturing networks for different products or product groups involving different sets of factories. This research investigates 20 product group networks at five global manufacturing firms. We distinguish between three types of factories: component manufacturing factories, assembly factories, and integrated factories (having both component manufacturing and assembly). Furthermore, we identify four network types: linear, divergent, convergent, and mixed structures. These four types exhibit distinctly different characteristics in terms of key characteristics, factory roles, product types, process types, market types, sourcing, and key managerial challenges. Most networks are relatively small – on an average consisting of four factories and some contain a number of subnetworks that are self-sufficient in terms of material flow and serve separate market regions. We identify two new types of factory roles related to component manufacturing competences, which we call ‘strategic feeder’ and ‘full lead’.     

Improving operational plant performance in international manufacturing networks: the effects of integrative capabilities and plant roles

Abstract

This study adopts the resource-based view to examine how two integrative capabilities of a plant embedded in a manufacturing network enhance operational performance: the capability to connect with other plants in its manufacturing network (a networking capability, NC), and the capability to integrate manufacturing processes with new product development processes (a new product development capability, NPDC). Our model tests the indirect effect of NC on cost, quality, flexibility and delivery through NPDC. Furthermore, we test if the relationship between NC and NPDC depends on the strategic role of the plant. Using survey data from a sample of 521 plants, we confirmed the mediating effect of NPDC. However, the moderation effect was not confirmed. Our findings reveal that plants can deploy NPDC capabilities, fostered by NC, independently from their role in the network. This study contributes to the understanding of plant capabilities and plant roles in manufacturing networks.     

Uncovering the factors behind new ventures’ international performance: Capabilities,alertness and technological turbulence

This research is based on the perception that the explanation of International New Ventures' (INVs) performance demands a process view, going deeper than the standard approach, in empirical papers, of testing a direct relationship between company-level antecedents and performance. A three-tier model was developed to investigate the process leading to INVs international performance, emphasizing the role of entrepreneurial alertness. Based on the dynamic capabilities framework, entrepreneurial alertness was envisaged as the mediating element between firms' capabilities and their international performance. Empirical research confirmed the hypothesized model. Firms' capabilities (entrepreneurial orientation, foreign market knowledge, and absorptive capacity) significantly influence the level of entrepreneurial alertness, which impacts on the levels of self-reported satisfaction with the company's international performance. The paper makes four contributions to International Entrepreneurship literature. First, it highlights the key role played by entrepreneurial alertness in explaining INVs' international performance. This is convergent with the dynamic capabilities view on firms' ability to sense and seize specific international business opportunities. Second, this study considers entrepreneurial alertness as a capability that is not limited to the entrepreneur, but it is an organizational capability. Third, it shows that entrepreneurial alertness does not exist in the vacuum, is based on a set of base capabilities, namely entrepreneurial orientation, foreign market knowledge, and absorptive capacity, that simultaneously leverage the INVs to sense possible opportunities and constrain the focus of opportunities to international markets, as a key element to foster INVs' higher performance. Fourth, it underlines the role of technological turbulence as a moderator of the relationship between entrepreneurial alertness and INVs' international performance.     

Managing international manufacturing at plant and plant network levels – insights from five case studies

Abstract

In this study, we develop understanding of management of international manufacturing by a combined analysis of manufacturing firms’ plant networks and roles of individual plants within them. We elaborate the framework of Ferdows (1989 Ferdows, K. 1989. “Mapping International Factory Networks.” In Managing international manufacturing, edited by K. Ferdows, 3–21. Amsterdam, The Netherlands: Elsevier Publishers. [Google Scholar]) at plant and network levels by analyzing data collected from five plant networks of global manufacturing companies and propose an enhanced framework consisting of four main role types with eleven plant roles, which have implications on the network level. The findings give interesting and novel insights into management of international manufacturing; we conclude that plant roles are more complex than conventionally considered and understanding of international manufacturing requires elaborated analysis at both plant and network levels.     

Product architecture,global operations networks,and operational performance: an exploratory study

Abstract

This paper investigates the relationships between product architectures and global operations networks and their impact on operational performance, based on survey data from 82 Swedish manufacturers. We find that modular and integral product architectures are associated with different characteristics of the global operations network, and that global operations network designs are characterised by three dimensions: network, plant and supply chain. The key aspects are network structure (configuration as well as coordination), plant focus (scale or scope) and the locus of supply chain capabilities (internal or external).     

Flexible reasoning using sensible agent-based systems: A case study in job flow scheduling

Planning and control systems for highly dynamic and uncertain manufacturing environments require adaptive flexibility and decision-making capabilities. Modern distributed manufacturing systems assess the utility of planning and executing solutions for both system goals (e.g. minimize manufacturing production time for all parts or minimize WIP) and local goals (e.g. expedite part A production schedule or maximize machine X utilization). Sensible Agents have the ability to alter their autonomy levels to choose among a set of decision models in order to handle the differences between local and system goals. In this paper, Sensible Agents are applied to a production planning and control problem in the context of job shop scheduling and decision model theory. Sensible Agents provide for trade-off reasoning mechanisms among system and local utilities that are flexible and responsive to an agent's abilities, situational context and position in the organizational structure of the system.     

A systematic review of research into the management of manufacturing capabilities

Abstract

Our study aims to explore the past and present knowledge related to the management of manufacturing capabilities and to assess the extent to which our knowledge of this field has developed. It places specific emphasis on the philosophical foundations of the field, while also providing a set of directions for future research. A systematic review is applied, covering 104 articles. The authors unfold a strong dominance of the positivist paradigm and call for a more balanced and informed approach in philosophical and, more specifically, methodological selection by scholars. In terms of the research content, a strong bias exists towards measuring the impact that certain manufacturing capabilities and various configurations of these may have on key performance indicators, such as cost. Our review warns on the dangers of following a dominant paradigmatic stance and on the limitations of researching a limited area of the complex and dynamic manufacturing capabilities arena.     

Supply chain reconfiguration opportunities arising from additive manufacturing technologies in the digital era

Abstract

The aim of this study is to explore the impact of additive manufacturing (AM) technologies on the configuration opportunities of supply chains (SCs) within the digital manufacturing era. To this effect, we first conduct a critical taxonomy of existing research efforts and then propose an integrated decision-making process for the design and management of SCs defined by digital manufacturing technologies. Following, we provide an integrated framework for future SC reconfiguration opportunities arising from the adoption of AM on a supply network setting. Our analysis demonstrates the significant ramifications of AM techniques on SC configuration and sustainability performance as opposed to conventional value networks; however, existing research is evidently limited due to scope related challenges and the inherent complexity at the manufacturing echelon of the respective supply networks.     

发展中国家企业技术能力提升因素的实证研究

企业技术能力提升是内外部诸多因素协同作用的结果.对发展中国家企业技术能力内涵加以界定,以产业环境驱动、技术合作网络、外部技术转移和内部技术努力4个维度的各因素为基础.构建发展中国家企业技术能力提升因素的理论模型,并利用191家中国技术密集型制造企业的调研数据对理论模型和相关假设进行验证.研究表明,产业环境驱动维度的因素都对技术能力提升有显著影响,其中政策支持和产业协同对能力提升呈正向影响,市场压力对能力提升呈负向影响;技术合作网络维度的纵向和横向技术合作关系对技术能力提升没有显著影响;外部技术转移对技术能力提升呈现出显著负向影响;内部技术努力中的技术投入对技术能力提升有显著正向影响,创新氛围对技术能力提升没有显著影响.在结合实际对实证结果进行分析和讨论的基础上,提出提升中国企业技术能力的对策.     

International Digital Competence

This article evaluates which specific capabilities of a firm enable its internationalization process, with an emphasis on companies with exclusively digital products. The results provide an opportunity to examine the strength of earlier findings in International Entrepreneurship (IE) research, which has largely addressed high-tech ventures that export physical products. We reveal a set of intangible capabilities that are especially relevant to digital companies and their internationalization process, without foreign direct investment (FDI) or with limited outward assets characterized by non-equity entry modes. Using an inductive, multiple-case study methodology, we develop a new construct that we term ‘international digital competence’ (IDC). IDC consists of four capabilities critical to these companies: cross-cultural programming skills, global virtual networks, cross-border digital monetizing adaptability, and international business model reconfiguration. The possession of IDC enables digital companies to expand internationally through an online presence. Therefore, we propose that international online expansion can increase the likelihood of a digital company performing outward assets via non-equity entry modes. We also conceived that the digital company's strategy to achieve non-equity investments is moderated by its entrepreneur's international orientation.     

A Study of the Role Played by Manufacturing Strategic Objectives and Capabilities in Understanding the Relationship between Porter's Generic Strategies and Business Performance

An appropriate alignment between business strategy, manufacturing strategic objectives and manufacturing capabilities reportedly influences business performance positively. However, few papers empirically analyse this proposition for the case of Porter's generic strategies of cost leadership and differentiation, and none jointly considers all four elements. This paper integrates strategies, capabilities and performance in a single model and proposes that both manufacturing competitive priorities and capabilities, articulated in terms of cost and flexibility, are essential for explaining the link between generic business strategies and business commercial and financial performance. Within this analytic framework, we test whether companies that emphasize one business strategy rather than another achieve a better alignment and superior performance. The analyses conducted with a sample of 148 Spanish manufacturers provide general support for these propositions and contribute to a deeper understanding of the role played by functional strategies in understanding the outcomes of business strategy.     

The management of international manufacturing networks: a missing link towards total management of global networks

Abstract

The purposes of this article are to provide a brief overview of the research on international manufacturing networks (IMNs), identify corresponding gaps and provide background for the papers published in this special issue. First, this article shows the importance of addressing the management of IMNs, especially in times of global turbulence as a result of new economic, political and technological trends. Second, it highlights research into the management of IMNs as a missing link in the Operations Management (OM) discipline, as most of the current OM research neglects the fact that the internal structures and relationships of multi-plant organizations inside firms play a critical role in how a supply chain/network operates and relies mostly on scholars in other fields for insights into high-level and strategic issues in the management of global operations. Finally, this article argues there is still a lot to do in order to develop new theories towards the total management of global networks that can holistically analyze different global (intra- and inter-firm multi-functional) networks and address the complex interdependencies between them.     

Confucian values and the implications for international HRD

Abstract

The consideration of cultural issues has become increasingly important in scholarly inquiry and explorative practice in international human resource development (HRD). We review and explore the core characteristics of Confucian-based culture in relation to organizations and unfold how these Confucian values may affect organizational and management practices in China and other Asian countries. Five major aspects of Confucianism are examined. They are: (a) hierarchy and harmony, (b) group orientation, (c) guanxi networks (relationships), (d) mianzi (face) and (e) time orientation. The impact of these values on management practices in the Chinese organizational context is presented in four areas: (a) working relationships, (b) decision-making processes, (c) ruling by man (ren zhi) instead of by law (fa zhi) and (d) HR practices. Implications for organizations and international HRD are also discussed.     

A Discourse on the Incorporation of Organizational Factors into Probabilistic Risk Assessment: Key Questions and Categorical Review

This article presents a discourse on the incorporation of organizational factors into probabilistic risk assessment (PRA)/probabilistic safety assessment (PSA), a topic of debate since the 1980s that has spurred discussions among industry, regulatory agencies, and the research community. The main contributions of this article include (1) identifying the four key open questions associated with this topic; (2) framing ongoing debates by considering differing perspectives around each question; (3) offering a categorical review of existing studies on this topic to justify the selection of each question and to analyze the challenges related to each perspective; and (4) highlighting the directions of research required to reach a final resolution for each question. The four key questions are: (I) How significant is the contribution of organizational factors to accidents and incidents? (II) How critical, with respect to improving risk assessment, is the explicit incorporation of organizational factors into PRA? (III) What theoretical bases are needed for explicit incorporation of organizational factors into PRA? (IV) What methodological bases are needed for the explicit incorporation of organizational factors into PRA? Questions I and II mainly analyze PRA literature from the nuclear domain. For Questions III and IV, a broader review and categorization is conducted of those existing cross-disciplinary studies that have evaluated the effects of organizational factors on safety (not solely PRA-based) to shed more light on future research needs.     

Supplier Strategies and Routines for Capability Development: Implications for Upgrading

This paper examines the strategies and routines adopted by small and medium-sized suppliers to develop capabilities that enable them to engage in upgrading, despite a precarious relational and institutional context. To this end, we investigate the strategic behaviour of two Bangladeshi garment manufacturers. Both started out as small suppliers for multinational enterprises (MNEs) and have eventually grown into micro-multinationals. The firms are involved in ‘tacit promissory contracting’ with their buyers, a specific form of international outsourcing relationship. The study adopts a multiple case study design that involves interviews with managers/owners of the firms. The analysis yields two key findings. Both firms have devised strategies and taken coherent routines involving actions to develop skills and motivation needed to perform appropriate functional activities (i.e. pre-production, production and post-production) as they embarked on different stages of upgrading. Furthermore, firms have designed routines to internalise the challenges originating from their relationships with their buyers and the institutional environment at the time that had the potential to affect their upgrading goals. The paper contributes to IB studies by highlighting how suppliers, even in a precarious context, can control their own strategies and routines, so as to develop capabilities that allow them to gradually redress the power imbalance between themselves and their buyers.     

The effect of the drum-buffer-rope (DBR) approach on the performance of a synchronous manufacturing system (SMS)

The main objective of any manufacturing system is to organize the resources in a shop floor for effective transformation of raw materials into finished products. Synchronous manufacturing (SM) is a manufacturing management philosophy that has a set of principles, procedures and techniques where every action is evaluated in terms of a common global goal of the organization (Seetharama et al., 1997, Production Planning and Inventory Control). A manufacturing system that adopts the above principle is called as synchronous manufacturing system (SMS). In order for a manufacturing plant to achieve the benefits of a synchronous operation, a logistical manufacturing (SM) is a manufacturing management philosophy that has a set of principles, procedures and techniques where every action is evaluated in terms of a common global control system that is manageable and results in predictable performance is required. The drum-buffer-rope (DBR) approach, which is a generalized system, satisfies the above requirements through computer simulation. This paper focuses on the effect of DBR principles on the performance of a synchronous manufacturing system. A case study has been taken up in a small-scale industry and analysis has been carried out on the effect of the DBR approach on the performance of the system. This work has been performed on an IBM/PC compatible system using the promodel software and C language.     

Prioritising indicators in improving supply chain performance using fuzzy AHP: insights from the case example of four Indian manufacturing companies

Abstract

In this contribution, we aim to prioritise the indicators to enhance the organisational supply chain’s (SC) effectiveness from an industrial perspective. It will help industries to develop strategies for managing the SC effectively and ensuring improvement in performance continuously. To achieve this, this work proposes to use a two-phase research methodology. First, 36 SC performance improvement indicators are recognised from a literature survey and from field and industrial expert’s inputs. Secondly, a structural model is proposed using the fuzzy analytical hierarchy process (AHP) to prioritise the indicators strategically to improve the SC performance. The fuzzy AHP method helps determine the priority of concerns of the identified indicators under fuzzy surroundings. Inputs in this research are taken from four ancillary Indian plastic manufacturing firms. Research findings indicate that collaborations and information exchange dimension indicators obtained the highest priority in improving SC performance. The model proposed is considered very useful for the SC managers/practitioners/decision-makers to understand better and distinguish the essential SC performance improvement indicators and to take systematic decisions specifically to improve the performance of business in a SC context. Sensitivity analysis was conducted to examine the priority ranking of the indicators.     

Capturing the benefits of industry 4.0: a business network perspective

Abstract

This study uses a business network perspective to investigate the industry 4.0 context with the internet of things (IoT) as its enabling technology and product-use data as its core network resource. A three-stage qualitative methodology (interviews, focus group, Delphi-based inquiry) was used to examine the case of an emergent IoT-based business network in the UK road transport industry to examine: (i) how aspects of product use data influence the benefit opportunities the data provide to the different network actors; (ii) how capturing of the benefit opportunities in a network context is impacted by key barriers; and (iii) how network capabilities can overcome these barriers to capture benefits from product-use data. The study, thereby, contributes to an understanding of the industry 4.0 context from a resource dependency theory perspective and provides concrete recommendations for management operating in this context.     

Customization: Impact on Product and Process Performance

Manufacturing capability has often been viewed to be a major obstacle in achieving higher levels of customization. Companies follow various strategies ranging from equipment selection to order process management to cope with the challenges of increased customization. We examined how the customization process affects product performance and conformance in the context of a design‐to‐order (DTO) manufacturer of industrial components. Our competing risk hazard function model incorporates two thresholds, which we define as mismatch and manufacturing thresholds. Product performance was adversely affected when the degree of customization exceeded the mismatch threshold. Likewise, product conformance eroded when the degree of customization exceeded the manufacturing threshold. Relative sizes of the two thresholds have management implications for the subsequent investments to improve customization capabilities. Our research developed a rigorous framework to address two key questions relevant to the implementation of product customization: (1) what degrees of customization to offer, and (2) how to customize the product design process.