Abstract
Based on a longitudinal study of two companies, this paper investigates the evolution of manufacturing, supply, and strategic networks and suggests it can be viewed as a long-term, stepwise, expansive, iterative and interactive process and thereby, can be called “interactive evolution of constructs and networks”. It is further found that the evolution of plants and manufacturing networks is more closely linked with the evolution of suppliers and supply networks, and vice versa; the evolution of JVs and strategic networks can be linked with the evolutions of plants/suppliers and manufacturing/supply networks, but depending on the purposes behind the establishment of JVs. Finally, this paper proposes short-term and long-term solutions to manage different networks holistically.
Highlights
Since the 1980s, it has been impossible for manufacturing companies to withstand the trend of globalisation
A manufacturing network, defined as a coordinated aggregation of intra-firm plants/factories located in different places, is normally studied as a wholly owned and internal network in which all plants are under full financial control [1, 2]
Addressing the above gaps, this paper aims to investigate the interaction between manufacturing, strategic, and supply networks in their evolution, paying attention to both construct and network levels
Summary
Since the 1980s, it has been impossible for manufacturing companies to withstand the trend of globalisation. A manufacturing network, defined as a coordinated aggregation (network) of intra-firm plants/factories located in different places, is normally studied as a wholly owned and internal network in which all plants are under full financial control [1, 2]. It has become more accepted for manufacturing companies to globalise their operations by following the second mode, i.e. the diffused governance mode, which lacks ownership and has only limited possibilities for control. A supply network, defined as a network of connected and interdependent organisations mutually and cooperatively working together to manage the flow of goods and services from original supply sources to end users, is normally analysed as an external (inter-firm) network with facilities owned by different organisations and characterised by sets of purposeful and connected exchange relationships [1]
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