Dissertation: A Global Factory Operates Through Partnerships
Recently, a new kind of organisational structure has emerged among SMEs. Researchers call this structure a global factory. The success of a global factory calls for a well-managed international value net.
A small global factory is a networked organisational structure where operations are spread globally. In her doctoral dissertation in international business, M.Sc. Taina Eriksson examined the management of a small global factory from the perspective of value creation and partnerships.
A Small One Needs to Be Inventive
In global factories, active communication with partners is emphasised as a means of management. Also, personal relations with the key persons of the partner organisations are crucial.
It is also worthwhile to offer training to the partners.
- Without good knowledge of the product it is difficult for the partner to integrate it into the total solution and thus promote both companies’ success.
In addition, partners’ performances can be followed with the help of jointly defined indicators.
- All in all, the study highlights that a partnership needs to be in agreement with both firms’ interests so that it can be managed and that it can create value.
Capabilities as Success Factors in a Global Factory
In her study, Eriksson discovered three types of factors that influence an SME’s ability to manage the global factory.
According to the study, managers’ cognitive capabilities lay the foundation for managing the global factory. Particularly important are cultural awareness, global mindset, and entrepreneurial orientation.
The effective utilisation of cognitive capabilities necessitates managerial capabilities to operate in the interfaces between organisations, and their ability to think and work analytically.
- A manager needs to be able to manage individual partnerships and the whole value net. In addition, they should be able to simultaneously see details and the big picture.
Nevertheless, individuals’ capabilities do not translate into success without organisational capabilities. Two focal organisational capabilities are flexibility and absorptive capacity.
Eriksson examined the management of capabilities in globally operating software firms. The operations of four small global factories were analysed in the qualitative case study. In addition to the interview data, Eriksson’s dissertation includes an extensive systematic literature review on earlier research on dynamic capabilities. The study brings together multiple theories and concepts. Important part of its academic contribution is showing connections between concepts that have been kept separate in earlier research in the field of international business.
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Taina Eriksson defends her doctoral disseration in International Business entitled Dynamic capability of value net management in technology-based SMEs on the 4th of October, 2013.
Opponent: Professor Udo Zander (Stockholm School of Economics)
Custodian: Professor Niina Nummela
Contact: mob. +358 0 728 6196, email: tatuer@utu.fi
Eriksson's photograph: http://www3.utu.fi/vaittelijat/eriksson_taina.JPG
The dissertation is available at: https://www.doria.fi/handle/10024/92469
