Abstract

PurposeThis paper investigates how the adoption of additive manufacturing (AM) impacts upstream supply chain (SC) design and considers the influence of drivers and barriers towards the adoption.Design/methodology/approachTen case studies investigating AM adoption by Original Equipment Manufacturers (OEMs) in five industries were conducted. This research is driven by a literature-based framework, and the results are discussed according to the theory of transaction cost economics (TCE).FindingsThe case studies reveal four patterns of AM adoption that affect upstream SC design (due to changes in supply base or types of buyer–supplier relationships): make, buy, make and buy and vertical integration. A make or buy decision is based on the level of experience with the technology, on the AM application (rapid manufacturing, prototyping or tooling) and on the need of control over production. Other barriers playing a role in the decision are the high initial investments and the lack of skills and knowledge.Originality/valueThis paper shows how different decisions regarding AM adoption result in different SC designs, with a specific focus on the upstream SC and changes in the supply base. This research is among the first to provide empirical evidence on the impact of AM adoption on upstream SCs and to identify drivers of the make or buy decision when adopting AM through the theoretical lens of TCE.

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