Linking plant roles and operations strategy decision-making autonomy in international manufacturing networks

Olhager, JanLund University,Lunds universitet,Institutionen för teknisk ekonomi och logistik,Institutioner vid LTH,Lunds Tekniska Högskola,Teknisk logistik,Institutionen för maskinvetenskaper,Department of Industrial Management and Logistics,Departments at LTH,Faculty of Engineering, LTH,Engineering Logistics,Department of Mechanical Engineering Sciences,Faculty of Engineering, LTH (författare)

QC 20220524
This paper is concerned with the management of multi-plant manufacturing networks. Two key concepts in this domain are plant roles and plant autonomy in the context of operations strategy decision-making. We investigate the relationship between these two concepts and their impact on plant performance. We use data from 102 manufacturing plants belonging to multi-plant networks. The results suggest a relationship between plant roles and operations strategy decision-making structures. Plants with high levels of decision-making autonomy typically have high levels of production, supply chain, and development competences, while plants with a low level of decision-making autonomy are primarily those with only production site competences. Integrated structures for operations strategy decision-making, which include both the network level and the plant level, exist for all plant types and are thus not restricted to plants with a certain set of site competences. In accounting for both the plant type and decision-making structure, we were unable to detect any significant differences between groups in terms of performance effects. Instead, it seems that the fit between plant type and decision-making structure is important and that choosing the right type of operations strategy decision-making structure moderates the performance of plants with low site competence levels.

Feldmann, Andreas,1981-KTH Royal Institute of Technology,KTH,Hållbarhet, Industriell dynamik & entreprenörskap(Swepub:kth)u1rhsecb (författare)
Institutionen för teknisk ekonomi och logistikInstitutioner vid LTH (creator_code:org_t)

Ingår i:International Journal of Production Research: Informa UK Limited60:1, s. 242-2550020-75431366-588X

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