Abstract
Local production sites in least developed countries offer sustainability for both multinational corporations and local society. However, corporations often hesitate because of uncertain environmental influences on production sites in these countries. To minimize planning uncertainties, we aim to identify and categorize the challenges of local production in least developed countries. Therefore, we conduct a research on local production challenges described in current literature. Our results indicate that the influences can be clustered and occur independent of the country. To show practical relevance and actuality of the identified production challenges, we conducted two case studies. Additionally, these studies give examples for organizational, product-specific and technological solutions to overcome the prevailing challenges. In summary, we support the removal of barriers that keep corporates from setting up local production sites in least developed countries.
Highlights
In least developed countries a connection between rising social standards and economic growth exists ([1] p. 53)
In contrast to the advantages of local production sites in the least developed countries, uncertainty about local boundary conditions pThis leads to the questions whether these boundary conditions are country-specific and whether the challenge of appropriate products for local production prevail.revent companies from creating value in developing countries ([4] p. 450)
The first case study examines a non-governmental organization (NGO) that reduces a product to its essential components and meets the challenges of local production
Summary
In least developed countries a connection between rising social standards and economic growth exists ([1] p. 53). There is great uncertainty among companies whether they should plan sites in developing countries. This is mainly due to unknown boundary factors and their impact on a local production site [4]. Which leads to our research question: Which boundary factors challenge local production in least developed countries? To answer this question, we start by explaining the advantages of a local production site and strategies of companies to enter new markets (Section 2). We introduce our literature research proceeding to identify production challenges in least developed countries (Section 3). We conclude with a summary of this study and future research scopes (Section 6)
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