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

Olhager, Jan LU orcid and Feldmann, Andreas (2022) In International Journal of Production Research 60(1). p.242-255
Abstract

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.... (More)

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.

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organization
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type
Contribution to journal
publication status
published
subject
keywords
Decision categories, exploratory study, global operations network, manufacturing strategy, site competences, survey research
in
International Journal of Production Research
volume
60
issue
1
pages
242 - 255
publisher
Taylor & Francis
external identifiers
  • scopus:85118205652
ISSN
0020-7543
DOI
10.1080/00207543.2021.1991026
language
English
LU publication?
yes
additional info
Publisher Copyright: © 2021 The Author(s). Published by Informa UK Limited, trading as Taylor & Francis Group.
id
7c84929d-4385-4a93-a39e-5aca45a69ec7
date added to LUP
2021-11-24 14:59:46
date last changed
2023-03-08 03:01:56
@article{7c84929d-4385-4a93-a39e-5aca45a69ec7,
  abstract     = {{<p>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.</p>}},
  author       = {{Olhager, Jan and Feldmann, Andreas}},
  issn         = {{0020-7543}},
  keywords     = {{Decision categories; exploratory study; global operations network; manufacturing strategy; site competences; survey research}},
  language     = {{eng}},
  number       = {{1}},
  pages        = {{242--255}},
  publisher    = {{Taylor & Francis}},
  series       = {{International Journal of Production Research}},
  title        = {{Linking plant roles and operations strategy decision-making autonomy in international manufacturing networks}},
  url          = {{http://dx.doi.org/10.1080/00207543.2021.1991026}},
  doi          = {{10.1080/00207543.2021.1991026}},
  volume       = {{60}},
  year         = {{2022}},
}