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Stability and change in the supply chains of multinational plants: the managerial voice

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  • Mike Crone
  • H. Doug Watts

Abstract

High levels of stability over the five‐year period 1991–96 are observed in the supply chains of plants in Yorkshire and Humberside in the UK owned by multinational enterprises (MNEs). Stability is explained by a lack of alternative suppliers, satisfaction with existing suppliers, perceived benefits derived from continuity, sunk costs in existing suppliers and managerial complacency. Where supply chain patterns have changed, changes are associated with changes in production, changes in supply chain strategy, or exogenous factors, such as heightened competition and changes in the geography of potential suppliers. High levels of stability in the geography of the supply chain provide a challenge to arguments that there is now a rapid process of globalisation within MNEs. Nevertheless, where change is taking place, MNEs are moving towards increased globalisation in their sourcing strategies rather than towards a deeper embeddedness in their host regions.

Suggested Citation

  • Mike Crone & H. Doug Watts, 2002. "Stability and change in the supply chains of multinational plants: the managerial voice," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 93(3), pages 287-301, August.
    • Handle: RePEc:bla:tvecsg:v:93:y:2002:i:3:p:287-301
    DOI: 10.1111/1467-9663.00203
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    Cited by:

    1. Frank McDonald & Heinz-Josef Tüselmann & Svitlana Voronkova & Pavlos Dimitratos, 2005. "The Strategic Development of Foreign-Owned Subsidiaries and Direct Employment in Host Locations in the United Kingdom," Environment and Planning C, , vol. 23(6), pages 867-882, December.

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