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Performance Management in International Manufacturing Networks : an Agency Perspective

2022-02-21 , Remling, Dominik

Many manufacturing companies developed into international manufacturing networks in the course of globalization. Reaping the benefits of a network requires aligning individual manufacturing sites with superior strategic targets. If alignment is the case, the network performance can exceed the sum of the particular manufacturing site performances. In todays volatile markets, increased competition, and uncertainties, it is progressively vital to support executives of international manufacturing networks with performance data for outcome and behavioral control. To enhance fulfilling organizational targets, companies adopt methods from the performance management field. Performance management is an integrated system for performance measurement and multidimensional steering based on the obtained information. A few initial approaches to specifying performance management for international manufacturing networks exist in the literature. However, questions regarding the main barriers remain unanswered. From a practitioner perspective, companies predominantly use performance management to steer single manufacturing sites, but many companies fail to adapt it for the aligned steering of an overall international manufacturing network. The qualitative research project initially provides descriptively the current state in research and practice through a systematic literature review and a benchmarking study. Further, it adopts an explorative nature by creating an understanding of the fundamental performance dimensions based on a Delphi study. The dimensions presented in the form of a performance measurement framework serve as a foundation for the research community. A subsequent embedded multiple-case design results in additional conceptual frameworks for selecting and structuring performance indicators. The frameworks are integrated into a holistic procedure to support practitioners in developing a performance management tool for international manufacturing networks. The research project adopts the perspective of agency theory. Consequently, the functional interaction between the network level principal and site level agents is primarily investigated. The technical instead of the environmental and social perspective of outcome and behavior control is in the center of attention and therefore presupposes the measurability of international manufacturing network effectiveness.