Abstract
This paper starts from reviewing (1) the history of globalisation/internationalisation and related theories and (2) the history of global manufacturing and related studies. A figure is developed to illustrate the overview of the research trajectory of global (manufacturing) studies. Furthermore, the paper emphasizes that global manufacturing can further be accompanied by the internationalisation of other related value chain activities. In this case, discussions are naturally extended from global manufacturing to other global activities as well as their corresponding functional networks. The paper further shows the importance of addressing individual manufacturing, sales, service, engineering, and R&D functional networks simultaneously. Four factors are identified to be critical when addressing each functional network as well as their interactions. A similar development trend can also be observed with regard to the externalisation of both manufacturing and other value chain activities. An internationalisation and externalisation matrix is provided to illustrate the mentioned development trends in a holistic framework. Last but not least, practical implications are given ranging from micro to macro level.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
References
Abele E, Meyer T, Naher U, Strube G, Sykes R (eds) (2008) Global production: a handbook for strategy and implementation. Springer, Berlin
Berminghan JA (1996) Roles of R&D and manufacturing in global marketing management. J Int Mark 4(4):75–84
Birkinshaw J (2002) Managing internal R&D networks in global firms. Long Range Plan 35:245–267
Birou LM, Fawcett SE (1993) International purchasing: benefits, requirements, and challenges. Int J Purchasing Mater Manage 29(2):28–36
Blanc H, Sierra C (1999) The internationalisation of R&D by multinationals: a trade-off between external and internal proximity. Camb J Econ 23(2):187–206
Bolisani E, Scarso E (1996) International manufacturing strategies: experiences from the clothing industry. Int J Oper Prod Manage 16(11):71–84
Bozarth C, Handfield R, Das A (1998) Stages of global sourcing strategy evolution: an exploratory study. J Oper Manage 16(2–3):241–255
Buckley PJ, Casson MC (1998) Analyzing foreign market entry strategies: extending the internalization approach. J Int Bus Stud 29(3):539–562
Chan FTS, Chung SH, Wadhwa S (2005) A hybrid genetic algorithm for production and distribution. Omega: Int J Manage Sci 33(4):345–355
Cheng Y, Johansen J (2013) Operations network development: internationalisation and externalisation of value chain activities. Prod Plann Control. doi:10.1080/09537287.2013.839064
Chiesa V (1996) Managing the internationalization of R&D activities. IEEE Trans Eng Manage 43(1):7–23
Coe NM, Dicken P, Hess M (2008) Global production networks: realizing the potential. J Econ Geogr 8:271–295
Colotla I (2003) Operations and Performance of International Manufacturing Networks. PhD Thesis, Engineering Department, University of Cambridge, Cambridge, UK
Colotla I, Shi Y, Gregory M (2003) Operation and performance of international manufacturing networks. Int J Oper Prod Manage 23(10):1184–1206
Dubois FL, Toyne B, Oliff MD (1993) International manufacturing strategies of US multinationals: a conceptual framework based on a four-industry study. J Int Bus Stud 24(2):307–333
Dunning JH (1988) The eclectic paradigm of international production: a restatement and some possible extensions. J Int Bus Stud 19(1):1–31
Dunning JH, Lundan SM (2009) The internationalization of corporate R&D a review of the evidence and some policy implications for home countries. Rev Policy Res 26(1–2):13–33
Ernst D, Kim L (2002) Global production networks, knowledge diffusion, and local capability formation. Res Policy 31:1417–1429
Faes W, Matthyssens P, Vandenbempt K (2000) The pursuit of global purchasing synergy. Ind Mark Manage 29(6):539–553
Feldmann A, Olhager J, Persson F (2009) Designing and managing manufacturing networks—a survey of Swedish plants. Prod Plann Control 20(2):101–112
Ferdows K (1989) Mapping international factory networks. In: Ferdows K (ed) Managing international manufacturing. Elsevier Science Publishers, Amsterdam, pp 3–21
Ferdows K (1997a) Made in the world: the global spread of production. Prod Oper Manage 6(2):102–109
Ferdows K (1997b) Making the most of foreign factories. Harvard Bus Rev 75:73–88
Ferdows K (2006) Transfer of changing production know-how. Prod Oper Manage 15(1):1–9
Ferdows K (2009) Shaping global operations. Georgetown Univ J Globalization, Competitiveness Governability 3(1):136–148
Flaherty T (1989) International sourcing: beyond catalog shopping and franchising. In: Ferdows K (ed) Managing international manufacturing, Amsterdam, New York, North Holland, pp 95–124
Flaherty MT (1996) Global operations management. McGraw Hill, New York
Friedman T (2008) The world is flat, Paw Prints
Fusco JP, Spring M (2003) Flexibility versus robust networks: the case of the Brazilian automotive sector. Integr Manuf Syst 14(1):26–35
Gammeltoft P (2005) Internationalisation of R&D: trends, drivers, and managerial challenges. In: Proceedings of DRUIC tenth anniversary summer conference on dynamics of industry and innovation: organisations, networks, and systems, Copenhagen, Denmark
Gelderman CJ, Semeijn J (2006) Managing the global supply base through purchasing portfolio management. J Purchasing Supply Manage 12:209–217
Geyskens I, Steenkamp JEM, Kumar N (2006) Make, buy, or ally: a transaction cost theory meta-analysis. Acad Manag J 49(3):519–543
Hayes R, Pisano G, Upton D, Wheelwright S (2005) Operations, strategy, and technology—pursuing the competitive edge. Wiley, Hoboken
Hendersons J, Dicken P, Hess M, Coe N, Wai-Chung Yeung H (2002) Global production networks and the analysis of economic development. Rev Int Polit Econ 9(3):436–464
Hood N, Young S (1982) US multinational R&D: corporate strategies and policy implications for the UK. Multinational Bus 2:10–23
Hymer S (1976) The international operations of national firms: a study of direct investment. MIT Press, Cambridge
Jacob F, Strube G (2008) Why go global? the multinational imperative. In: Abele E, Meyer T, Naher U, Strube G, Sykes R (eds) Global production: a handbook for strategy and implementation. Springer, Berlin, pp 2–33
Johanson J, Vahlne JE (1977) The internationalisation process of the firm—a model of knowledge development and increasing foreign market commitments. J Int Bus Stud 8(1):23–32
Karlsson M (eds) (2006) The internationalization of corporate R&D: leveraging the changing geography of innovation. ITPS, Swedish Institute for Growth Policy Studies
Katayama H (1999) Design of a global car production-logistics system for a future ASEAN-China region. Int J Oper Prod Manage 19(5/6):582–601
Kotabe M, Omura GS (1989) Sourcing strategies of European and Japanese multinationals: a comparison. J Int Bus Stud 20(1):113–130
Kotabe M (1992) Global sourcing strategy: R&D, manufacturing, and marketing. Quorum Books, New York
Kotabe M (1998) Efficiency versus effectiveness orientation of global sourcing strategy: a comparison of U.S. and Japanese multinational companies. Acad Manage Executive 12(4):107–119
Kotabe M, Murray JY (2004) Global sourcing strategy and sustainable competitive advantage. Ind Mark Manage 33(1):7–14
Lambert MD, Cooper MC (2000) Issues in supply chain management. Ind Mark Manage 29:65–83
Maritan CA, Brush TH, Karnani AG (2004) Plant roles and decision autonomy in multinational plant networks. J Oper Manage 22:489–503
Manyika J, Sinclair J, Dobbs R, Rassey L, Mischke J, Remes J, Roxburgh C, George K, O’Halloran D, Ramaswamy S (2012) Manufacturing the future: the next era of global growth and innovation. McKinsey Global Institute
Meijboom B, Vos B (1997) International manufacturing and location decisions: balancing configuration and coordination aspects. Int J Oper Prod Manage 17(8):790–805
Meijboom B, Voordijk H (2003) International operations and location decisions: a firm level approach. Tijdschrift voor Economische en Sociale Geografie 94(4):463–476
Meijboom B, Vos B (2004) Site competence dynamics in international manufacturing networks: instrument development and a test in Eastern European factories. J Purchasing Supply Manage 10:127–136
Monczka RM, Trent RJ (1991) Global sourcing: a development approach. Int J Purchasing Mater Manage 27:2–8
Pearce R, Papanastassiou M (1999) Overseas R&D and the strategic evolution of MNEs: evidence from laboratories in the UK. Res Policy 28(1):23–41
Pontrandolfo P, Okogbaa O (1999) Global manufacturing: a review and a framework for planning in a global corporation. Int J Prod Res 37(1):1–19
Prasad S, Babbar S (2000) International operations management research. J Oper Manage 18:209–247
Prasad S, Babbar S, Motwani J (2001) International operations strategy: current efforts and future directions. Int J Oper Prod Manage 21(5/6):645–665
Reger G (2004) Coordinating globally dispersed research centres of excellence: the case of Philips electronics. J Int Manag 10:51–76
Ronstadt RC (1977) R&D abroad by U.S. multinationals. Praeger, New York
Ronstadt RC (1978) International R&D: the establishment and evolution of research and development abroad by seven US multinationals. J Int Bus Stud 9:7–24
Rozemeijer F (2000) How to manage corporate purchasing synergy in a decentralized company: towards design rules for managing and organizing purchasing synergy in decentralized companies. European J Purchasing Supply Manage 6(1):5–12
Rudberg M, Olhager J (2003) Manufacturing networks and supply chains: an operations strategy perspective. Omega. Inte J Manage Sci 31:29–39
Rudberg M, West BM (2008) Global operations strategy: coordinating manufacturing networks. Omega: The Int J Manage Sci 36:91–106
Sachwald F (2008) Location choices within global innovation networks: the case of Europe. J Technol Transfer 33:364–378
Schmenner RW (1982) Multi-plant manufacturing strategies among the Fortune 500. J Oper Manage 2(2):77–86
Shi Y, Gregory M, Naylor M (1997) International manufacturing configuration map: a self-assessment tool of international manufacturing capabilities. Integr Manuf Syst 8(5):273–282
Shi Y, Gregory M (1998) International manufacturing networks—to develop global competitive capabilities. J Oper Manage 16(2):195–214
Shi Y (2003) Internationalisation and evolution of manufacturing systems: classic process models, new industrial issues, and academic challenges. Integr Manuf Syst 14(4):357–368
Shi Y (2004) A Roadmap of Manufacturing System Evolution—from product competitive advantage towards collaborative value creation. In: Chang Y, Makatsoris H, Richards H (eds) Evolution of supply chain management—symbiosis of adaptive value networks and ict. Academic Publisher, USA
Shi Y, Gregory M (2005) Emergence of global manufacturing virtual networks and establishment of new manufacturing infrastructure for faster innovation and firm growth. Prod Plann Control 16(6):621–631
Simon S, Naher U, Lauritzen M (2008) R&D: aligning the interface with production. In: Abele E, Meyer T, Naher U, Strube G, Sykes R (eds) Global production: a handbook for strategy and implementation. Spring, pp 350–371
Skinner W (1996) Manufacturing strategy on the S curve. Prod Oper Manage 5(1):3–14
Sturgeon TJ (2002) Modular production networks: a new American model of industrial organization. Ind Corp Change 11(3):451–496
Trent RJ, Monczka RM (2003) International purchasing and global sourcing—what are the differences? J Supply Chain Manage 39:26–37
Vereecke A, Van Dierdonck R (2002) The strategic role of the plant: testing Ferdows’s model. Int J Oper Prod Manage 22(5):492–514
Vereecke A, Van Dierdonck R, De Meyer A (2006) A typology of plants in global manufacturing networks. Manage Sci 52(11):1737–1750
Vernon R (1966) International investment and international trade in the product cycle. Quart J Econ 80(2):190–207
Vokurka RJ, Davis RA (2004) Manufacturing strategic facility types. Industr Manage Data Syst 104(6):490–504
Vos G (1991) A production-allocation approach for international manufacturing strategy. Int J Oper Prod Manage 11(3):125–134
Wang D, Kumar M, Gregory M (2008) Following the footprint. In: Proceedings of 15th EurOMA conference, Groningen, the Netherlands, June 15–18, pp 172
Williamson OE (1985) The economic institutions of capitalism. The Free Press, New York
Waehrens BV, Cheng Y, Madsen ES (2012) The replication of expansive production knowledge: the role of templates and principles. Baltic J Manage 7(3):268–286
Yip GS (1989) Global strategy in a world of nations? Sloan Manag Rev 31(1):29–41
von Zedtwitz M, Gassmann O (2002) Market versus technology drive in R&D internationalisation: four different patterns of managing research and development. Res Policy 31:569–588
von Zedtwitz M, Oliver G, Boutellier R (2004) Organizing global R&D: challenges and dilemmas. J Int Manag 10:21–49
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2014 Springer-Verlag London
About this chapter
Cite this chapter
Cheng, Y., Farooq, S., Johansen, J. (2014). Global Operations: A Review and Outlook. In: Johansen, J., Farooq, S., Cheng, Y. (eds) International Operations Networks. Springer, London. https://doi.org/10.1007/978-1-4471-5646-8_11
Download citation
DOI: https://doi.org/10.1007/978-1-4471-5646-8_11
Published:
Publisher Name: Springer, London
Print ISBN: 978-1-4471-5645-1
Online ISBN: 978-1-4471-5646-8
eBook Packages: EngineeringEngineering (R0)