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Performance assessment process model for international manufacturing networks

Silas Costa Ferreira Junior (Department of Production Engineering, Polytechnic School, University of São Paulo, São Paulo, Brazil)
Afonso Carlos Corrêa Fleury (Department of Production Engineering, Polytechnic School, University of São Paulo, São Paulo, Brazil)

International Journal of Operations & Production Management

ISSN: 0144-3577

Article publication date: 21 February 2018

Issue publication date: 18 October 2018

895

Abstract

Purpose

Multinational companies have manufacturing operations in various countries; however, there is scarce evidence on how they assess performance of the network-based operations of their factories, called international manufacturing networks (IMN). The purpose of this paper is to propose a process model for the performance assessment of IMNs.

Design/methodology/approach

The IMN performance assessment process model was developed from the extant literature and was empirically verified in its congruency and usefulness via a multiple case research. For that, in each case the general process model was derived into a specific application that fit the type of IMN on focus. Qualitative and quantitative data were collected from the case companies’ reports, profiling forms and interviews, followed by within-case and cross-case analyses.

Findings

Evidence suggest that the process model, along with its derivations, is a valuable tool to describe and explain how IMN performance assessment unfolds in real organizational environments. Additionally, three propositions emerged: IMN performance assessment has distinct characteristics depending on the type of IMN adopted, which in turn depends on the company’s internationalization strategy; IMN performance assessment has more strategic value and importance for companies that are globally coordinated and adopt “rooted” manufacturing strategies; and companies design their IMN performance assessment on a trial-and-error basis.

Research limitations/implications

As all case-based research, this paper has generalizability limitations. Thus, next steps may include a large-scale survey and an action research that will develop and implement a full-fledged IMN performance assessment.

Practical implications

The process model and descriptive insights provide a diagnostic tool and subsidies that may encourage managers to review and improve their current IMN performance assessment.

Originality/value

The process model contributes to addressing a 20-year gap concerning how to approach IMN performance assessment in a holistic and systematic manner.

Keywords

Acknowledgements

The authors wish to express their gratitude to CAPES (Brazil’s Centre for Improvement of Higher Education Personnel) and CNPq (Brazil’s National Council for Scientific and Technological Development) for the support provided.

Citation

Costa Ferreira Junior, S. and Fleury, A.C.C. (2018), "Performance assessment process model for international manufacturing networks", International Journal of Operations & Production Management, Vol. 38 No. 10, pp. 1915-1936. https://doi.org/10.1108/IJOPM-03-2017-0183

Publisher

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Emerald Publishing Limited

Copyright © 2018, Emerald Publishing Limited

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