How can firms implement smart manufacturing through supply chain collaboration? A multiple-case study from China

Abstract

The complex system characteristics of Smart manufacturing (SM) require firms collaborating with supply chain members to implement SM transformation. However, the motives, methods, and influencing factors of such collaboration remain unclear. Addressing this gap, we conduct a multi-case study of four manufacturing firms and obtain three findings based on complex adaptive system theory. First, the motives of supply chain collaboration include the adaptation to the environment of high customisation, technical complexity, policy, and horizontal competition. Second, firms collaborate with supply chain members in terms of equipment customisation and information interconnection, to establish the data and equipment foundation of SM. This process is affected by the scale and volume of invested resources. Based on these, firms further build collaborative platforms to realise the integrated management of all supply chain links and improve the SM capability through the iteration of solutions, which are affected by the degree of security in data sharing. Third, supply chain collaboration improves the quality and satisfaction, reduces the cost, and shortens the cycle of SM implementation. This study not only addresses whether and how supply chain collaboration influences SM implementation, but also provides guidance to help companies implement SM through a gradual multi-stage collaboration in supply chain.