Abstract

Decision-making in industrial networks is a topical issue among researchers and practitioners. It brings up viable possibilities from close interaction with other companies to new uncertainties and risks. Original equipment manufacturer (OEM) firms are building more efficient ways of producing end products and their suppliers face new challenges and pressure to evolve their business practices. For this study, empirical evidence was based on two networks in the electronics and metal manufacturing industries. Data were gathered during in-depth interviews with company representatives. Decision making and financial risks became more challenging and risky because the OEMs were required to have a significant role as development initiators and information sources when making decisions. Suppliers should have a realistic view of their position and role when assessing the reliability of information and risk management methods in the network. Power structure between companies is critical in decision-making situations.

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