IDEAS home Printed from https://ideas.repec.org/a/eee/proeco/v126y2010i2p314-323.html
   My bibliography  Save this article

Analysis of global manufacturing virtual networks in the aeronautical industry

Author

Listed:
  • Rodríguez Monroy, Carlos
  • Vilana Arto, José Ramón

Abstract

The evolution of organizations that work in multinational environments has considerably altered their production strategies. One of the consequences has been the appearance of Global Manufacturing Virtual Networks (GMVNs), which include all kinds of enterprises and production centres and establish a new type of horizontal collaboration and relations between independent companies and even competitors who establish occasional collaborations on projects they could not take on individually. This paper analyses the causes behind the formation of such networks, their strategy, structure, dynamics and evolution, taking into account areas such as strategic intercompany alliances, synchronization of their value and supply chains, their information systems, the cultural aspects of the organizations in question and, finally, their convergence with another of the more relevant future trends in production: mass customization. The proposed model shall be applied to the aeronautical industry which is one of the industries which has developed the GMVN concept. The case study of the engine manufacturer Rolls Royce will provide a better understanding of the evolution of its strategic positioning, as well as the dynamic and fluent nature of its virtual relations. This will demonstrate its effectiveness by clarifying and putting these organizations in perspective and analyzing their evolution over the next few years.

Suggested Citation

  • Rodríguez Monroy, Carlos & Vilana Arto, José Ramón, 2010. "Analysis of global manufacturing virtual networks in the aeronautical industry," International Journal of Production Economics, Elsevier, vol. 126(2), pages 314-323, August.
  • Handle: RePEc:eee:proeco:v:126:y:2010:i:2:p:314-323
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0925-5273(10)00129-5
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Demeter, Krisztina, 2003. "Manufacturing strategy and competitiveness," International Journal of Production Economics, Elsevier, vol. 81(1), pages 2015-2213, January.
    2. Rudberg, Martin & Olhager, Jan, 2003. "Manufacturing networks and supply chains: an operations strategy perspective," Omega, Elsevier, vol. 31(1), pages 29-39, February.
    3. Timothy J. Sturgeon, 2002. "Modular production networks: a new American model of industrial organization," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 11(3), pages 451-496, June.
    4. Bhutta, Khurrum S. & Huq, Faizul & Frazier, Greg & Mohamed, Zubair, 2003. "An integrated location, production, distribution and investment model for a multinational corporation," International Journal of Production Economics, Elsevier, vol. 86(3), pages 201-216, December.
    5. Offodile, O. Felix & Abdel-Malek, Layek L., 2002. "The virtual manufacturing paradigm: The impact of IT/IS outsourcing on manufacturing strategy," International Journal of Production Economics, Elsevier, vol. 75(1-2), pages 147-159, January.
    6. Yusuf, Yahaya & Gunasekaran, A. & Abthorpe, Mark S., 2004. "Enterprise information systems project implementation:: A case study of ERP in Rolls-Royce," International Journal of Production Economics, Elsevier, vol. 87(3), pages 251-266, February.
    7. D'Amours, Sophie & Montreuil, Benoit & Lefrancois, Pierre & Soumis, Francois, 1999. "Networked manufacturing:: The impact of information sharing," International Journal of Production Economics, Elsevier, vol. 58(1), pages 63-79, January.
    8. Rudberg, Martin & Martin West, B., 2008. "Global operations strategy: Coordinating manufacturing networks," Omega, Elsevier, vol. 36(1), pages 91-106, February.
    9. Ulrich, Karl, 1995. "The role of product architecture in the manufacturing firm," Research Policy, Elsevier, vol. 24(3), pages 419-440, May.
    10. Corvello, Vincenzo & Migliarese, Piero, 2007. "Virtual forms for the organization of production: A comparative analysis," International Journal of Production Economics, Elsevier, vol. 110(1-2), pages 5-15, October.
    11. Tuma, A., 1998. "Configuration and coordination of virtual production networks," International Journal of Production Economics, Elsevier, vol. 56(1), pages 641-648, September.
    12. Manthou, Vicky & Vlachopoulou, Maro & Folinas, Dimitris, 2004. "Virtual e-Chain (VeC) model for supply chain collaboration," International Journal of Production Economics, Elsevier, vol. 87(3), pages 241-250, February.
    13. Bruce C. Arntzen & Gerald G. Brown & Terry P. Harrison & Linda L. Trafton, 1995. "Global Supply Chain Management at Digital Equipment Corporation," Interfaces, INFORMS, vol. 25(1), pages 69-93, February.
    14. Kulmala, Harri I. & Paranko, Jari & Uusi-Rauva, Erkki, 2002. "The role of cost management in network relationships," International Journal of Production Economics, Elsevier, vol. 79(1), pages 33-43, September.
    15. Arshinder & Kanda, Arun & Deshmukh, S.G., 2008. "Supply chain coordination: Perspectives, empirical studies and research directions," International Journal of Production Economics, Elsevier, vol. 115(2), pages 316-335, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jia, Fu & Lamming, Richard & Sartor, Marco & Orzes, Guido & Nassimbeni, Guido, 2014. "Global purchasing strategy and International Purchasing Offices: Evidence from case studies," International Journal of Production Economics, Elsevier, vol. 154(C), pages 284-298.
    2. J. Behnamian & S. M. T. Fatemi Ghomi, 2016. "A survey of multi-factory scheduling," Journal of Intelligent Manufacturing, Springer, vol. 27(1), pages 231-249, February.
    3. Marcus A. Bellamy & Rahul C. Basole, 2013. "Network analysis of supply chain systems: A systematic review and future research," Systems Engineering, John Wiley & Sons, vol. 16(2), pages 235-249, June.
    4. Kristianto, Yohanes & Gunasekaran, Angappa & Helo, Petri, 2017. "Building the “Triple R” in global manufacturing," International Journal of Production Economics, Elsevier, vol. 183(PC), pages 607-619.
    5. Roma, Paolo & Perrone, Giovanni, 2016. "Cooperation among competitors: A comparison of cost-sharing mechanisms," International Journal of Production Economics, Elsevier, vol. 180(C), pages 172-182.
    6. Caliari, Thiago & Ribeiro, Leonardo Costa & Pietrobelli, Carlo & Vezzani, Antonio, 2023. "Global value chains and sectoral innovation systems: An analysis of the aerospace industry," Structural Change and Economic Dynamics, Elsevier, vol. 65(C), pages 36-48.
    7. Jukka Hallikas & Lauri Lättilä, 2012. "Firm Positioning and Performance in ICT Industry Sectors," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 3(4), pages 406-420, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Esposito, Emilio & Evangelista, Pietro, 2014. "Investigating virtual enterprise models: literature review and empirical findings," International Journal of Production Economics, Elsevier, vol. 148(C), pages 145-157.
    2. Zhang, Abraham & Luo, Hao & Huang, George Q., 2013. "A bi-objective model for supply chain design of dispersed manufacturing in China," International Journal of Production Economics, Elsevier, vol. 146(1), pages 48-58.
    3. Acar, Yavuz & Atadeniz, Sukran Nilvana, 2015. "Comparison of integrated and local planning approaches for the supply network of a globally-dispersed enterprise," International Journal of Production Economics, Elsevier, vol. 167(C), pages 204-219.
    4. Chiara Freichel & Nicolas Neis & Axel Winkelmann, 2021. "A Taxonomy For Interorganizational Production Networks," Business Logistics in Modern Management, Josip Juraj Strossmayer University of Osijek, Faculty of Economics, Croatia, vol. 21, pages 167-187.
    5. Van Assche, Ari, 2008. "Modularity and the organization of international production," Japan and the World Economy, Elsevier, vol. 20(3), pages 353-368, August.
    6. Vincent Frigant & Damien Talbot, 2003. "Convergence et diversité du passage à la production modulaire dans l'aéronautique et l'automobile en Europe," Post-Print hal-00246171, HAL.
    7. Gawer, Annabelle, 2014. "Bridging differing perspectives on technological platforms: Toward an integrative framework," Research Policy, Elsevier, vol. 43(7), pages 1239-1249.
    8. Vincent Frigant & Damien Talbot, 2007. "Proximites Et Logique Modulaire Dans L'Automobile Et L'Aeronautique : Vers Une Dualisation Des Espaces D'Approvisionnement," Post-Print hal-02376436, HAL.
    9. Rahul Kapoor, 2013. "Persistence of Integration in the Face of Specialization: How Firms Navigated the Winds of Disintegration and Shaped the Architecture of the Semiconductor Industry," Organization Science, INFORMS, vol. 24(4), pages 1195-1213, August.
    10. Vincent FRIGANT, 2011. "Egyptian pyramid or Aztec pyramid: How should we describe the industrial architecture of automotive supply chains in Europe?," Cahiers du GREThA (2007-2019) 2011-27, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    11. Frigant, 2004. "Modularity: the foundations of an architect firm? (In French)," Industrial Organization 0405002, University Library of Munich, Germany.
    12. Cabigiosu, Anna & Zirpoli, Francesco & Camuffo, Arnaldo, 2013. "Modularity, interfaces definition and the integration of external sources of innovation in the automotive industry," Research Policy, Elsevier, vol. 42(3), pages 662-675.
    13. Toh, K.T.K. & Nagel, P. & Oakden, R., 2009. "A business and ICT architecture for a logistics city," International Journal of Production Economics, Elsevier, vol. 122(1), pages 216-228, November.
    14. Leonardo Bargigli, 2005. "The limits of modularity in innovation and production," KITeS Working Papers 176, KITeS, Centre for Knowledge, Internationalization and Technology Studies, Universita' Bocconi, Milano, Italy, revised Sep 2005.
    15. Mario Benassi, 2009. "Investigating modular organizations," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 13(3), pages 163-192, August.
    16. Fujita, Mai, 2013. "Exploring the sources of China's challenge to Japan : models of industrial organisation in the motorcycle industry," IDE Discussion Papers 419, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    17. Vincent FRIGANT, 2007. "Between Internationalisation and Proximity: the internationalisation process of automotive first tier suppliers," Cahiers du GREThA (2007-2019) 2007-13, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    18. Andrea González & Juan Carlos Hallak, 2022. "Relational links for insertion in non‐mass global value chains: Opportunities for middle‐income countries," Review of International Economics, Wiley Blackwell, vol. 30(2), pages 653-672, May.
    19. Byron Gangnes & Ari Van Assche, 2004. "Modular Production Networks in Electronics: the Nexus between Management and Economics Research," Working Papers 21-2004, Singapore Management University, School of Economics.
    20. Funaki, Kenichi, 2012. "Strategic safety stock placement in supply chain design with due-date based demand," International Journal of Production Economics, Elsevier, vol. 135(1), pages 4-13.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:proeco:v:126:y:2010:i:2:p:314-323. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ijpe .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.