The capability profiles of global production networks: An empirical typology to identify opportunities for network reconfiguration and calibration
Journal
SSRN Electronic Journal
ISSN
1556-5068
Type
journal article
Date Issued
2024-08-07
Author(s)
Abstract
This paper develops an empirically-grounded typology of global production networks based on their network capability profiles, which allows the deduction of managerial steps that could be taken to improve a production network’s performance. Clustering our survey data on network capabilities, we find five distinct types of networks: (1) externally focused networks, (2) unfocused networks, (3) low-capability networks, (4) internally focused networks, and (5) all-round networks. Based on our statistical analyses of performance differences between clusters and within clusters, we suggest two types of network improvement strategies: Reconfiguration, i.e., the change to a structurally similar but higher-performing network type; and calibration, that is, targeted capability adjustments within a given network type. On the conceptual level, we deviate from the atomistic approach taken by network typologies predominant in the literature, reducing complexity not by decomposing networks into their individual subunits but by categorizing their capability profiles and analyzing their associated improvement potential.
Language
English
Keywords
Global production networks
operational performance
financial performance
offshoring and reshoring
strategic capabilities
SDG 9: Industry
innovation and infrastructure
Refereed
no
Pages
42