Existing literature on multinational enterprises andfacility location lacks discussion of foreign site selection problems. This article presents a multiple-period, mixed-integer-programming mathematical model that maximizes after-tax profit to the parent corporation by selecting the optimal overseas manufacturing location(s). The model deals with such factors as time, political risk and threat of expropriation, host-nation incentives and regulations, labor characteristics and training grants, technology and experience effects, and parts and sourcing. A data matrix, using columns to define variables and rows to define the objective function and constraints, is presented. A hypothetical example illustrates the model, which is applicable to varying problem sizes even though the size of the data matrix increases quickly with larger-scale site-selection problems.
The biotechnology sector is a revolutionary industrial sector and promises significant innovations in medicine, veterinary care, plant agriculture, food processing, and environmental industries. Within the United States, biotechnology firms have generally agglomerated in existing regional high-technology complexes. In this paper empirical evidence is presented on the formation, evolution, financial sources, and educational relationships of thirty-three commercial biotechnology firms in the Greater Seattle metropolitan region, a leading US biotechnology concentration. Data were collected through extensive personal interviews, and these biotechnology organizations are compared across the following organizational incubators of the founder(s): academic or other research institution, academic or other research institution and business, biotechnology firm spin-off, and nonbiotechnology firm spin-off. Findings show the significance of local universities, research institutions, and existing biotechnology organizations in developing and sustaining biotechnology investment and employment. Comparisons across the organizational origins of these firms indicate major differences in financial structure and in affiliations with educational institutions for resources and research collaborations. Results also highlight several issues concerning regional economic development and biotechnology enterprises.
Purpose
The purpose of this study is to explore modifications to the supply chain strategies of international manufacturers resulting from recent momentous trade disruptions, including the US-China trade war, global tariff escalations, Brexit and heightened geopolitical tensions.
Design/methodology/approach
The research methodology consisted of a series of in-depth personal interviews with senior supply chain executives of six large US international manufacturers.
Findings
The study identified several short-term reactive strategies taken, including pulling purchase orders or production forward, building inventory and applying for exceptions from tariffs, along with longer-term proactive strategies such as shifting and expanding supplier and manufacturing locations.
Research limitations/implications
The study’s limitations involve its small sample size and its findings being industry and company-specific to a limited number of firms. While the sample size was deemed sufficient for this exploratory study, larger sample sizes and subsequent industry-specific analyses are recommended.
Practical implications
The global supply chain modifications effectively used by the firms in the study can offer guidance for practitioners facing similar challenges following major trade disruptions.
Originality/value
Due to the very recent emergence of the trade disruptors examined in this study, extant literature is limited. Hence, the findings noted in the paper offer not only guidance for practitioners but also make a strong contribution to research and literature on global supply chain risk management and disruption risk mitigation.
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