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Risk-related global production flexibility

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  • Lars Ehrengren

Abstract

The background and reason for this study is the ongoing change from competition to strategic business cooperation among organisations in world business today. Another reason is the assumption that the choice of cooperation structure will lead to higher flexibility and lower production-risk exposure. More specifically, the conditions behind the choice between venture and alliance for global industrial production are examined in order to know how to keep the flexibility to change the cooperation structure when the business environment conditions change. A theoretical scheme is developed and the key findings are illustrated with three examples from global production in the car and truck industry and in the telecom industry: Volvo/Renault, Volvo/Mitsubishi and Sony/Ericsson.

Suggested Citation

  • Lars Ehrengren, 2006. "Risk-related global production flexibility," International Journal of Business Environment, Inderscience Enterprises Ltd, vol. 1(3), pages 301-319.
    • Handle: RePEc:ids:ijbenv:v:1:y:2006:i:3:p:301-319
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