Centre for International Manufacturing

International manufacturing networks: configuration, capability and transformation

Yongjiang Shi

Abstract

This dissertation explores the structure and capability of international manufacturing networks. A new classification of networks is proposed, providing an extension to existing theories of manufacturing strategy. New insights into the capabilities of various configurations of network are used to provide the basis for a practical approach to strategy development and network design.

Globalisation is leading to re-structuring of international manufacturing systems in transnational corporations, but little systematic research has focused on this new type of manufacturing system. The research described here set out to extend classical manufacturing system concepts to answer the following key questions:

• How might international manufacturing networks best be represented?
• What new requirements does globalisation place upon manufacturing systems?
• What capabilities can be provided by international manufacturing networks?
• What approaches might be used in the design of appropriate networks?

The research proceeded three stages -- theory construction; validation and illustration; and workbook design and implementation. Theory construction is drawn from a range of disciplines particularly international business, strategic management and manufacturing engineering, and builds upon twenty industrial cases in a range of industries. The major network dimensions identified are dispersion and coordination of factories. This two-dimensional platform is used to classify networks into seven typical configurations which are analysed to reveal network attributes and map network strategies and transformations. Capability profiles for each configuration are developed from the case studies to illustrate networks' strategic functions and potentials.

The second stage of the research uses these new constructs in the development of a "workbook" which can be used by companies to analyse their current networks and capabilities and at the same time provide research insight into network related issues.

The final stage of the research involves the design and implementation of a workbook embodying a practical process for global manufacturing strategy formulation. The workbook has been tested in industrial settings and demonstrated that it has potential as a research tool as well as a practical support to industrial decision making.

This dissertation provides new understanding about the structures and capabilities of international manufacturing networks. It also opens the way for deepening the discussion on attributes of international manufacturing networks and exploring network design process.

Further information from

Dr. Yongjiang Shi

yseng.cam.ac.uk