Exploiting the potential of manufacturing network embeddedness

Abstract

Purpose The purpose of this paper is to provide guidance in setting the level of autonomy (i.e. parental control) of plants in a network to enhance operational performance. In particular, the effect of autonomy on performance is analysed directly and indirectly through internal manufacturing network integration (MNI) and external supply chain integration (SCI) as two dimensions of manufacturing network embeddedness. Design/methodology/approach The analysis is based on data from 441 manufacturing plants in 17 countries. Data were gathered during the Sixth International Manufacturing Strategy Survey. Five main constructs were obtained after carrying out a confirmatory factor analysis: plant autonomy, internal MNI, external SCI, efficiency and effectiveness. Direct and indirect relationships among the constructs are tested through a structural equation model. Findings Higher levels of autonomy correlate with higher effectiveness and similar efficiency. However, lower autonomy leads to higher levels of manufacturing network and SCI, which enhance performance. Although not statistically significant, the analysis of the total effects reveals a mildly positive effect of autonomy on effectiveness and negative effect on efficiency, which requires further investigation. Research limitations/implications Further research could include headquarters’ perspectives or additional determinants (e.g. business strategy objectives). Practical implications Managers should set autonomy levels strategically: higher for effectiveness and lower for efficiency. However, lower autonomy can also strengthen internal MNI and external SCI, thus improving operational performance. Originality/value The concept of manufacturing network embeddedness highlights the importance of considering external supply chain and internal MNI in the same framework, as both dimensions can affect operational performance.

An empirical examination of the relationship between globalization, integration and sustainable innovation within manufacturing networks

“…Finally, we dropped all the German cases, as Germany was the only country with less than 9 entries and, thus, was insufficient to support controls at the country level and to perform the construct generalizability tests discussed in the next section. This choice is not affecting the final results and is in line with other IMSS-based studies (Gimenez et al, 2012;Golini et al, 2016). Thus, we ended up with 471 usable cases, of which 130 are part of a regional network, and the remaining 341 are part of a global network.…”

“…Internal manufacturing network integration (MNI) was assessed by a four-item, fivepoint Likert scale that captured the effort put in the last three years into (MNI1) improving joint decision making to define production plans and allocate production in collaboration with other plants in the network; (MNI2) improving innovation sharing/joint innovation with other plants; (MNI3) improving the use of technology to support communication with other plants of the network; and (MNI4) developing a comprehensive network performance-management system. Similar measures were developed and tested in several studies (Golini et al, 2016;Jansen et al, 2005;Rudberg and Olhager, 2003;Vereecke et al, 2006).…”

A Study of Knowledge Management and Organizational Learning under Environmental Education

“…This study combines the viewpoints of Rudberg et al (2016) and regards manufacturers' global manufacturing network as the process of collaboration, information sharing, and common decision-making between manufacturers and other manufacturers of the same multinational manufacturers to fulfill the target which cannot be realized by a single factory (Ruggero et al, 2016;Shi & Gregory, 1998).…”

“…From the aspect of resource-based view, Manufacturers in multinational manufacturers could commonly create and use technology assets with other manufacturers and transfer and absorb knowledge through the manufacturing network to enhance the operation efficiency and benefit. It is the key to promote organizational learning capability (Dunning, 1993;Ruggero et al, 2016;Vereecke et al, 2006). Some research also studied organizational learning capability from different aspects (Alegre, 2008;Camps et al, 2015;Jerez-Gómez et al, 2005).…”

“…Globalized, dynamic, and fierce market competition are the features reflecting current manufacturers' external environment (Peng & Meng, 2016). Under such environment, manufacturers have to reinforce the global competitiveness (Barrett, Balloun & Weinstein, 2009;Ferdows, 1989;Huang, Zhang, & Liu, 2013) which is realized through global marketing and global manufacturing (Rudberg & West, 2008;Ruggero, Deflorin, & Scherrer, 2016). International manufacturing initiated in 1980s and 1990s is regarded as an important composition for manufacturers acquiring competitive advantages (Ferdows, 1997).…”