Why locate manufacturing in a high-cost country?: A case study of 35 production location decisions
By Mikko Ketokivi, Virpi Turkulainen, Timo Seppälä, Petri Rouvinen, Jyrki Ali-Yrkkö. 2017
143 citations recorded by the source corpus.
Abstract In this paper, we examine in detail 35 final assembly location decisions to gain understanding of the manufacturing location decision from strategy and economic policy perspectives. We are particularly interested in the decision to locate final assembly specifically in a high-cost (high GDP per capita) environment. In contrast with the earlier literature, we focus not just on manufacturing activities themselves, but also the key linkages between production, market, supply chain, and product development. These linkages are examined using three key concepts from theories of organization design: formalization, specificity, and coupling. Using these concepts, an analysis of the micro-structure of each case reveals important commonalities that inform our understanding of location decisions. We conclude by discussing the policy implications of our findings.
Subfields: Management Information Systems, Strategy and Management
View Paper: https://www.semanticscholar.org/paper/3d7722dfad819ccf0991814a1a25874c0ef204be
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In Management Information Systems
In Strategy and Management
Citations in the corpus
- Transaction Cost Economics As a Theory of Supply Chain Efficiency (2020, background): “Similarly, the drivers of production location decisions — a potential source of site specificity — are well documented in the operations management literature (Brush et al. 1999, Ferdows 1989, Ketokivi et al. 2017b; Schmen-ner 1982).”