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A Typology of Plants in Global Manufacturing Networks

Author

Listed:
  • Ann Vereecke

    (Vlerick Leuven Gent Management School, and Faculty of Economics and Business Adminstration, Ghent University, Reep 1, B-9000 Gent, Belgium)

  • Roland Van Dierdonck

    (Vlerick Leuven Gent Management School, and Faculty of Economics and Business Adminstration, Ghent University, Reep 1, B-9000 Gent, Belgium)

  • Arnoud De Meyer

    (Judge Business School, Cambridge University, Trumpington Street, Cambridge CB2 1AG, United Kingdom)

Abstract

The purpose of this paper is to propose a new, empirically derived typology of plants in the international manufacturing network of multinational companies. This typology is based on the knowledge flows between the plants. In our research, network analysis has been used as a methodology for understanding the position of plants in international manufacturing networks. The focus has been primarily on the intangible knowledge network, and secondarily on the physical, logistic network. Our analysis leads to four types of plants with different network roles: the isolated plants, the receivers, the hosting network players, and the active network players. Our analysis shows that the different types of plants play a different strategic role in the company, have a different focus, and differ in age, autonomy, and level of resources and investments. Also, the analysis suggests that the evolution of the plant depends to some extent on the network role of the plant. Finally, two scenarios for the development of a strong network role are identified. The research is useful for the scholar studying the architecture of knowledge networks, as well as for the practitioner who is in charge of an international network of manufacturing units.

Suggested Citation

  • Ann Vereecke & Roland Van Dierdonck & Arnoud De Meyer, 2006. "A Typology of Plants in Global Manufacturing Networks," Management Science, INFORMS, vol. 52(11), pages 1737-1750, November.
    • Handle: RePEc:inm:ormnsc:v:52:y:2006:i:11:p:1737-1750
    DOI: 10.1287/mnsc.1060.0582
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    References listed on IDEAS

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    Cited by:

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    2. Andreas Grossler, 2010. "An Exploratory Study of Differences in Manufacturing Strategy between National and Global Production Firms," Journal of Management and Strategy, Journal of Management and Strategy, Sciedu Press, vol. 1(1), pages 47-62, December.
    3. Cheng, Yang & Farooq, Sami, 2018. "The role of plants in manufacturing networks: A revisit and extension," International Journal of Production Economics, Elsevier, vol. 206(C), pages 15-32.
    4. Wang, Jue & Liu, Xiaming & Li, Xiaoying, 2009. "A dual-role typology of multinational subsidiaries," International Business Review, Elsevier, vol. 18(6), pages 578-591, December.
    5. Hamann-Lohmer, Jacob & Bendig, Miriam & Lasch, Rainer, 2023. "Investigating the impact of digital transformation on relationship and collaboration dynamics in supply chains and manufacturing networks – A multi-case study," International Journal of Production Economics, Elsevier, vol. 262(C).
    6. Niu, Baozhuang & Li, Qiyang & Liu, Yaoqi, 2020. "Conflict management in a multinational firm's production shifting decisions," International Journal of Production Economics, Elsevier, vol. 230(C).
    7. Demeter, Krisztina, 2014. "Operating internationally—The impact on operational performance improvement," International Journal of Production Economics, Elsevier, vol. 149(C), pages 172-182.
    8. 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.
    9. Demeter, Krisztina & Szász, Levente & Rácz, Béla-Gergely, 2016. "The impact of subsidiaries’ internal and external integration on operational performance," International Journal of Production Economics, Elsevier, vol. 182(C), pages 73-85.
    10. De Marchi, Valentina & Cainelli, Giulio & Grandinetti, Roberto, 2022. "Multinational subsidiaries and green innovation," International Business Review, Elsevier, vol. 31(6).
    11. Fabrizio Salvador & Juan Pablo Madiedo, 2021. "Enabling Globally Distributed Projects: Effects of Project Interface Match and Related Technical Experience," Production and Operations Management, Production and Operations Management Society, vol. 30(4), pages 1052-1081, April.
    12. Szász, Levente & Rácz, Béla-Gergely & Scherrer, Maike & Deflorin, Patricia, 2019. "Disseminative capabilities and manufacturing plant roles in the knowledge network of MNCs," International Journal of Production Economics, Elsevier, vol. 208(C), pages 294-304.
    13. Chen, Lujie & Olhager, Jan & Tang, Ou, 2014. "Manufacturing facility location and sustainability: A literature review and research agenda," International Journal of Production Economics, Elsevier, vol. 149(C), pages 154-163.
    14. Guido Nassimbeni & Guido Orzes & Marco Sartor, 2018. "Strategic Types and Competences of Domestic and Foreign Plants: An Empirical Study," Global Business Review, International Management Institute, vol. 19(4), pages 817-841, August.
    15. Viktorija Badasjane & Anna Granlund & Mats Ahlskog & Jessica Bruch, 2022. "Coordination of Digital Transformation in International Manufacturing Networks—Challenges and Coping Mechanisms from an Organizational Perspective," Sustainability, MDPI, vol. 14(4), pages 1-21, February.
    16. Marius Chofor Asaba & Fabian Duffner & Florian Frieden & Jens Leker & Stephan von Delft, 2022. "Location choice for large‐scale battery manufacturing plants: Exploring the role of clean energy, costs, and knowledge on location decisions in Europe," Journal of Industrial Ecology, Yale University, vol. 26(4), pages 1514-1527, August.
    17. Arnoud De Meyer & Kasra Ferdows & Ann Vereecke, 2023. "Putting manufacturing on the offensive," Production and Operations Management, Production and Operations Management Society, vol. 32(1), pages 227-236, January.
    18. Marcus Matthias Keupp & Maximilian Palmié & Oliver Gassmann, 2011. "Achieving Subsidiary Integration in International Innovation by Managerial “Tools”," Management International Review, Springer, vol. 51(2), pages 213-239, April.

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