Benefits of internal manufacturing network integration

What is it about?

This paper focuses on individual manufacturing plants belonging to companies that operate a network of different manufacturing plants, such as multinational companies. We find that plants located in developed countries can improve all their performance indicators by transferring knowledge from the other plants within the network. On the other hand, emerging country plants can increase only their effectiveness performance (quality, delivery, flexibility), but not their efficiency (cost) performance.

Featured Image

Why is it important?

Plant managers in emerging countries transfer knowledge that can increase their effectiveness (quality, delivery, flexibility) performance, while developed country plant managers can expect both effectiveness and efficiency (cost) improvements from transferring intra-network knowledge.