On integrating theories of international economics in the strategic planning of global supply chains and facility location
AbstractThis paper relates three theories of international economics (comparative advantage, competitive advantage, and competitiveness) and formulates the thesis that incorporating them in the form of readily available individual competitiveness indicators in OR/MS models offers promise to enhance decision-support for the strategic planning of global supply chains in general and for locating facilities in particular. The purpose of this paper is to relate these theories from the field of international economics, to give a roadmap of related measures that are provided by annual competitiveness reports, and to pose several research questions as challenges to the OR/MS community as it seeks to improve models to support the strategic planning process. Accordingly, specific objectives of this paper are to relate each of these theories and to describe their interrelationships; to describe measures provided by two well-known annual competitiveness reports; and to illustrate application of the theories as a means of supporting the thesis of the paper and justifying the research questions we pose for future research. While this paper discusses topics relative to the broader background of global supply chain design, it illustrates applications associated with facility location, a component of the global supply chain design, since it has a rich history within the OR/MS community and since it is central to strategic planning in the global economy.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Elsevier in its journal International Journal of Production Economics.
Volume (Year): 124 (2010)
Issue (Month): 1 (March)
Contact details of provider:
Web page: http://www.elsevier.com/locate/ijpe
Strategic planning Global supply chain design Facility location Comparative advantage Competitive advantage Competitiveness;
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Melo, M.T. & Nickel, S. & Saldanha-da-Gama, F., 2009. "Facility location and supply chain management - A review," European Journal of Operational Research, Elsevier, vol. 196(2), pages 401-412, July.
- David Kaplan, 2003. "Measuring our competitiveness - a critical examination of the IMD and WEF competitiveness indicators for South Africa," Development Southern Africa, Taylor & Francis Journals, vol. 20(1), pages 75-88.
- Keith R. Phillips & Kristen Hamden & Eric Lopez, 2004. "Gauging the impact of the San Antonio Toyota plant," Vista 7, Federal Reserve Bank of Dallas.
- van Triest, Sander & Vis, Wim, 2007. "Valuing patents on cost-reducing technology: A case study," International Journal of Production Economics, Elsevier, vol. 105(1), pages 282-292, January.
- Hodder, James E. & Jucker, James V., 1985. "International plant location under price and exchange rate uncertainty," Engineering Costs and Production Economics, Elsevier, vol. 9(1-3), pages 225-229, April.
- Hwy-Chang Moon, 2005. "Investment strategies by foreign automobile firms in China: A comparative study of Volkswagen, Honda, and Hyundai," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 3(2), pages 151-171.
- D Sethi & S E Guisinger & S E Phelan & D M Berg, 2003. "Trends in foreign direct investment flows: a theoretical and empirical analysis," Journal of International Business Studies, Palgrave Macmillan, vol. 34(4), pages 315-326, July.
- J Peter Neary, 2002.
"Competitive versus Comparative Advantage,"
200219, School Of Economics, University College Dublin.
- Krugman, Paul R, 1993. "On the Relationship between Trade Theory and Location Theory," Review of International Economics, Wiley Blackwell, vol. 1(2), pages 110-22, June.
- Steven Globerman & Daniel Shapiro, 2004.
"Governance Infrastructure and U.S. Foreign Direct Investment,"
- Steven Globerman & Daniel Shapiro, 2003. "Governance infrastructure and US foreign direct investment," Journal of International Business Studies, Palgrave Macmillan, vol. 34(1), pages 19-39, January.
- Vidal, Carlos J. & Goetschalckx, Marc, 2001. "A global supply chain model with transfer pricing and transportation cost allocation," European Journal of Operational Research, Elsevier, vol. 129(1), pages 134-158, February.
- John H Dunning, 1988. "The Eclectic Paradigm of International Production: A Restatement and Some Possible Extensions," Journal of International Business Studies, Palgrave Macmillan, vol. 19(1), pages 1-31, March.
- Sanjaya Lall (QEH) and John Weiss, .
"China's Competitive Threat to Latin America: An Analysis for 1990-2002,"
QEH Working Papers
qehwps120, Queen Elizabeth House, University of Oxford.
- Sanjaya Lall & John Weiss & Hiroshi Oikawa, 2005. "China's Competitive Threat to Latin America: An Analysis for 1990-2002," Oxford Development Studies, Taylor & Francis Journals, vol. 33(2), pages 163-194.
- Li, Suhong & Ragu-Nathan, Bhanu & Ragu-Nathan, T.S. & Subba Rao, S., 2006. "The impact of supply chain management practices on competitive advantage and organizational performance," Omega, Elsevier, vol. 34(2), pages 107-124, April.
- Li, Wenli & Humphreys, Paul K. & Yeung, Andy C.L. & Edwin Cheng, T.C., 2007. "The impact of specific supplier development efforts on buyer competitive advantage: an empirical model," International Journal of Production Economics, Elsevier, vol. 106(1), pages 230-247, March.
- John H Dunning, 1995. "Reappraising the Eclectic Paradigm in an Age of Alliance Capitalism," Journal of International Business Studies, Palgrave Macmillan, vol. 26(3), pages 461-491, September.
- Wilhelm, Wilbert & Liang, Dong & Rao, Brijesh & Warrier, Deepak & Zhu, Xiaoyan & Bulusu, Sharath, 2005. "Design of international assembly systems and their supply chains under NAFTA," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 41(6), pages 467-493, November.
- Vidal, Carlos J. & Goetschalckx, Marc, 1997. "Strategic production-distribution models: A critical review with emphasis on global supply chain models," European Journal of Operational Research, Elsevier, vol. 98(1), pages 1-18, April.
- Oral, Muhittin & Chabchoub, Habib, 1997. "An estimation model for replicating the rankings of the world competitiveness report," International Journal of Forecasting, Elsevier, vol. 13(4), pages 527-537, December.
- Iranmanesh, Hossein & Thomson, Vince, 2008. "Competitive advantage by adjusting design characteristics to satisfy cost targets," International Journal of Production Economics, Elsevier, vol. 115(1), pages 64-71, September.
- Hülsmann, Michael & Grapp, Jörn & Li, Ying, 2008. "Strategic adaptivity in global supply chains--Competitive advantage by autonomous cooperation," International Journal of Production Economics, Elsevier, vol. 114(1), pages 14-26, July.
- Santoso, Tjendera & Ahmed, Shabbir & Goetschalckx, Marc & Shapiro, Alexander, 2005. "A stochastic programming approach for supply chain network design under uncertainty," European Journal of Operational Research, Elsevier, vol. 167(1), pages 96-115, November.
- Ho Kim, 2005. "The Locational and Functional Behavior of U.S. Autoparts Suppliers," Small Business Economics, Springer, vol. 24(1), pages 79-95, February.
- Imre Fert– & L. J. Hubbard, 2003. "Revealed Comparative Advantage and Competitiveness in Hungarian Agri-Food Sectors," The World Economy, Wiley Blackwell, vol. 26(2), pages 247-259, 02.
- Lilach Nachum & Cliff Wymbs, 2005. "Product differentiation, external economies and MNE location choices: M&As in Global Cities," Journal of International Business Studies, Palgrave Macmillan, vol. 36(4), pages 415-434, July.
- Nordin, Fredrik, 2008. "Linkages between service sourcing decisions and competitive advantage: A review, propositions, and illustrating cases," International Journal of Production Economics, Elsevier, vol. 114(1), pages 40-55, July.
- Brian Snowdon & George Stonehouse, 2006. "Competitiveness in a globalised world: Michael Porter on the microeconomic foundations of the competitiveness of nations, regions, and firms," Journal of International Business Studies, Palgrave Macmillan, vol. 37(2), pages 163-175, March.
- Zhang, Zhe & Lee, Matthew K.O. & Huang, Pei & Zhang, Liang & Huang, Xiaoyuan, 2005. "A framework of ERP systems implementation success in China: An empirical study," International Journal of Production Economics, Elsevier, vol. 98(1), pages 56-80, October.
- Sigurdson, Jon, 2004. "Regional Innovation Systems (Ris) In China," EIJS Working Paper Series 195, The European Institute of Japanese Studies.
- Goetschalckx, Marc & Vidal, Carlos J. & Dogan, Koray, 2002. "Modeling and design of global logistics systems: A review of integrated strategic and tactical models and design algorithms," European Journal of Operational Research, Elsevier, vol. 143(1), pages 1-18, November.
- Bhutta, Khurrum S. & Huq, Faizul & Frazier, Greg & Mohamed, Zubair, 2003. "An integrated location, production, distribution and investment model for a multinational corporation," International Journal of Production Economics, Elsevier, vol. 86(3), pages 201-216, December.
- Hausen, Tobias & Fritz, Melanie & Schiefer, Gerhard, 2006. "Potential of electronic trading in complex supply chains: An experimental study," International Journal of Production Economics, Elsevier, vol. 104(2), pages 580-597, December.
- Zhang, Yan & Xia, Guoping, 2010. "Short-run cost-based pricing model for a supply chain network," International Journal of Production Economics, Elsevier, vol. 128(1), pages 167-174, November.
- Luis Carvalho & Aurora A.C. Teixeira, 2011. "Where are the poor in International Economics?," FEP Working Papers 425, Universidade do Porto, Faculdade de Economia do Porto.
- Chang, Cheng-Chang & Chen, Ju-Long, 2012. "A foreign expansion model with multi-site locations in service industries," International Journal of Production Economics, Elsevier, vol. 136(1), pages 102-109.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
If references are entirely missing, you can add them using this form.