PurposeThe purpose of this paper is to understand and describe the conditions that compel and underscore global supply chain (SC) adaptations.Design/methodology/approachInsights from contingency theory, Porter's economic cluster theory and international factory mapping are used to analyze the SC adaptations that follow when an automotive firm moves from a domestic to a global SC.FindingsAn automotive global SC adaptation includes market entry considerations, the establishment of a three‐stage flexible time‐ and production‐based supplier network plan, and the integration of logistics partners.Research limitations/implicationsSC adaptations are an important consideration for any manufacturing expansion effort, especially international ones. Varying production levels impact supplier relationships and decisions and may result in varied supplier perspectives. Government regulations influence entry and routine decisions, while logistics issues and costs play an integral role in supplier perceptions and reactions.Practical implicationsWith the rapid expansion of the Chinese auto market, entering manufacturing firms need more information about how to strategically locate, and develop and support supplier networks. A stepped supplier network establishment approach optimizes benefits for both manufacturing firm and suppliers. Evaluating and integrating logistics issues also sets the stage for future expansion efforts at optimal cost and supplier support.Originality/valueThe internationalization of the automotive SC involves adaptations that can only be successful through advance planning, strategic supplier networking, and systematic logistics integration.
Purpose -The purpose of this paper is to examine the impacts of modularity-based manufacturing practices (MBMP) and manufacturing system integration (MSI) on manufacturing performance (MP) using absorptive capacity as an important enabling factor. Design/methodology/approach -Constructs were developed through a comprehensive literature review. Structural equation modeling was used to test the research model and hypotheses based on a large sample of 303 US manufacturing firms. Findings -Both MBMP and MSI have significant impacts on MP. The positive effects of MBMP on MP are stronger than those of system integration. The absorptive capacity of a firm facilitates better use of modularity practices and system integration. Practical implications -More attention should be given to modularity practices in resource allocation planning. Also, system integration together with modularity practices can generate significantly higher MP. Originality/value -The paper is the first large-scale empirical study to examine the effects of absorptive capacity on MSI and MBMP, which in turn impacts MP. Furthermore, the findings empirically support that a combination strategy of modularity and system integration can help manufacturing firms to achieve higher performance.
Purpose -This paper aims to address the differing impacts of automation and integration on manufacturing performance (MP) under different levels of environmental uncertainty. Design/methodology/approach -Responses from 303 companies are analyzed and presented. Findings -Under industrial (low uncertainty) environment, manufacturing system automation has significant positive impact on MP, while the impact of manufacturing system integration is not significant. Under post-industrial (high uncertainty) environment, manufacturing system integration has significant positive impact on MP, while the impact of manufacturing system automation is not significant.Research limitations/implications -This paper emphasizes manufacturing strategy responses to different uncertainty levels of environment; either manufacturing system integration strategy or manufacturing system automation strategy plays the primary role for a manufacturing firm to achieve high performance under different uncertainty levels. Practical implications -This paper strongly supports that the key to effective management of automation technology is to improve manufacturing system integration before implementation under high uncertain environment. Originality/value -This paper is one of the first large-scale empirical studies to address the differing impacts of automation and integration on MP under different levels of environmental uncertainty (EU). Another contribution of this study is the development of valid and reliable measurement instruments for MP and EU, which can be widely used in other manufacturing technology management studies.
Purpose -Trust is essential for business relationships within a supply chain, and information sharing provides a key means to improve the efficiency of a supply chain. The purpose of this paper is to test empirically the relationship between trust and manufacturer-supplier information sharing to determine its (positive) effect on mass customization. Design/methodology/approach -The data come from 208 firms in North America and China. Structural equation modeling supports the data analysis. Findings -The results suggest that high mutual trust can lead to free information sharing between suppliers and manufacturers, which in turn leads to improved mass customization capabilities. In addition, cultural differences have significant moderating effects on the relationship between trust and information sharing. Originality/value -The study described in this paper measures mutual trust between manufacturers and suppliers and regards information sharing as the free flow of information, both to and from the manufacturer and supplier.
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