Rolling-out company-specific production systems in multinational corporations – a multilateral network perspective

Company-specific production systems (XPS) have recently seen a surge of attention in industry, due to their potential to yield substantial performance improvements. Their implementation however represents a complex process that needs to be managed thoroughly to avoid potential pitfalls. This exploratory study provides a holistic overview on how to manage the roll-out of XPS in multi-plant networks of multinational corporations (MNCs), adding to the understanding of this phenomenon. Investigating the XPS roll-out in the pharmaceutical industry, this multiple-case study yields two major findings. First, companies roll-out their XPS in a deliberate sequence or create an emerging sequence through pull mechanisms. Second, site resource availability is a key determinant of the deliberate sequence. The study follows the call for more research on XPS from a headquarter perspective and extends current research beyond the bilateral headquarter-site perspective, taking a multilateral network perspective. Finally, it provides practical insights that help XPS managers in defining their roll-out roadmaps.