IDEAS home Printed from https://ideas.repec.org/p/gov/wpregi/1502.html
   My bibliography  Save this paper

The impact of implementation of a modular platform strategy in automobile manufacturing networks

Author

Listed:
  • Jesús F. Lampón
  • Pablo Cabanelas
  • Javier González Benito

Abstract

This paper explores the impact of the implementation of modular platforms, to replace the standard platforms used to date, on the strategic outputs of automobile manufacturing networks. Analysis of the production network of manufacturers in Europe shows that the use of modular architecture improves the coordination of manufacturing networks by increasing manufacturing mobility and thriftiness ability. The changes resulting from this new modular strategy also allow for reorganisation of manufacturing capacity and the partial elimination of current overcapacity. From the point of view of production systems, the adaptation of processes and facilities in manufacturing plants to this new architecture should aim to increase flexibility by integrating production around a single platform, allowing for different dimensions and a large number of models in a single plant.

Suggested Citation

  • Jesús F. Lampón & Pablo Cabanelas & Javier González Benito, 2015. "The impact of implementation of a modular platform strategy in automobile manufacturing networks," Working Papers. Collection B: Regional and sectoral economics 1502, Universidade de Vigo, GEN - Governance and Economics research Network.
  • Handle: RePEc:gov:wpregi:1502
    as

    Download full text from publisher

    File URL: http://infogen.webs.uvigo.es/WPB/WP1502.pdf
    File Function: First version, 2015
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Linda Allen & Christos Pantzalis, 1996. "Valuation of the operating Flexibility of Multinational Corporations," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 27(4), pages 633-653, December.
    2. Arghya Ghosh & Hodaka Morita, 2002. "Differentiated duopoly under vertical relationships with communication costs," Industrial Organization 0207008, University Library of Munich, Germany.
    3. Rudberg, Martin & Olhager, Jan, 2003. "Manufacturing networks and supply chains: an operations strategy perspective," Omega, Elsevier, vol. 31(1), pages 29-39, February.
    4. Alain Patchong & Thierry Lemoine & Gilles Kern, 2003. "Improving Car Body Production at PSA Peugeot Citroën," Interfaces, INFORMS, vol. 33(1), pages 36-49, February.
    5. Subramanian Rangan, 1998. "Do Multinationals Operate Flexibly? Theory and Evidence," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 29(2), pages 217-237, June.
    6. Peter J. Buckley & Mark Casson, 2010. "Models of the Multinational Enterprise," Palgrave Macmillan Books, in: The Multinational Enterprise Revisited, chapter 7, pages 147-176, Palgrave Macmillan.
    7. Bernhard Fleischmann & Sonja Ferber & Peter Henrich, 2006. "Strategic Planning of BMW’s Global Production Network," Interfaces, INFORMS, vol. 36(3), pages 194-208, June.
    8. Markus C. Becker & Francesco Zirpoli, 2003. "Organising new product development Knowledge hollowing-out and knowledge integration," DRUID Working Papers 03-05, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
    9. Tony W Tong & Jeffrey J Reuer, 2007. "Real options in multinational corporations: organizational challenges and risk implications," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 38(2), pages 215-230, March.
    10. Chung-Yee Lee & George L. Vairaktarakis, 1997. "Workforce Planning in Mixed Model Assembly Systems," Operations Research, INFORMS, vol. 45(4), pages 553-567, August.
    11. Sihem Benmahmoud-Jouini & Sylvain Lenfle, 2010. "Platform re-use lessons from the automotive industry," Post-Print hal-00541292, HAL.
    12. Bruce Kogut & Nalin Kulatilaka, 1994. "Operating Flexibility, Global Manufacturing, and the Option Value of a Multinational Network," Management Science, INFORMS, vol. 40(1), pages 123-139, January.
    13. Sihem Ben Mahmoud-Jouini & Sylvain Lenfle, 2010. "Platform re-use : lessons from the automotive industry," Post-Print hal-00483039, HAL.
    14. Zander, Ivo, 1999. "Whereto the multinational? The evolution of technological capabilities in the multinational network," International Business Review, Elsevier, vol. 8(3), pages 261-291, August.
    15. Frank L DuBois & Brian Toyne & Michael D Oliff, 1993. "International Manufacturing Strategies of U.S. Multinationals: A Conceptual Framework Based on a Four-Industry Study," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 24(2), pages 307-333, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Vincent Frigant & J.F Lampon & P. Cabanelas, 2017. "The new automobile modular platforms: from the product architecture to the manufacturing network approach?," Post-Print hal-02150377, HAL.
    2. Rodolphe Durand & Robert M. Grant & Tammy L. Madsen & Lenos Trigeorgis & Jeffrey J. Reuer, 2017. "Real options theory in strategic management," Strategic Management Journal, Wiley Blackwell, vol. 38(1), pages 42-63, January.
    3. Tailan Chi & Jing Li & Lenos G Trigeorgis & Andrianos E Tsekrekos, 2019. "Real options theory in international business," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(4), pages 525-553, June.
    4. Elango, B., 2010. "Influence of industry type on the relationship between international operations and risk," Journal of Business Research, Elsevier, vol. 63(3), pages 303-309, March.
    5. Li, Jing & Rugman, Alan M., 2007. "Real options and the theory of foreign direct investment," International Business Review, Elsevier, vol. 16(6), pages 687-712, December.
    6. Aabo, Tom & Ploeen, Rasmus, 2014. "The German humpback: Internationalization and foreign exchange hedging," Journal of Multinational Financial Management, Elsevier, vol. 27(C), pages 114-129.
    7. Aabo, Tom & Pantzalis, Christos & Park, Jung Chul, 2016. "Multinationality as real option facilitator — Illusion or reality?," Journal of Corporate Finance, Elsevier, vol. 38(C), pages 1-17.
    8. HoWook Shin & Seung-Hyun Lee, 2019. "Economic crisis, intra-MNC production shifts and MNC performance from a network perspective," Asia Pacific Journal of Management, Springer, vol. 36(1), pages 185-217, March.
    9. Nguyen, Quyen T.K. & Kim, Sylvia, 2020. "The multinationality and performance relationship: Revisiting the literature and exploring the implications," International Business Review, Elsevier, vol. 29(2).
    10. Sophocles P. Ioulianou & Michael J. Leiblein & Lenos Trigeorgis, 2021. "Multinationality, portfolio diversification, and asymmetric MNE performance: The moderating role of real options awareness," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 52(3), pages 388-408, April.
    11. Driouchi, Tarik & Bennett, David, 2011. "Real options in multinational decision-making: Managerial awareness and risk implications," Journal of World Business, Elsevier, vol. 46(2), pages 205-219, April.
    12. Zhou, Chao, 2023. "Home country environment and the downside risk implications of multinationality: Empirical evidence from Chinese SMEs," Journal of Multinational Financial Management, Elsevier, vol. 69(C).
    13. Andersen, Torben Juul, 2012. "Multinational risk and performance outcomes: Effects of knowledge intensity and industry context," International Business Review, Elsevier, vol. 21(2), pages 239-252.
    14. Jesús F. Lampón & Pablo Cabanelas-Lorenzo & Santiago Lago-Peñas, 2013. "Why firms relocate their production overseas? The answer lies inside: corporate, logistic and technological determinants," Working Papers 2013/3, Institut d'Economia de Barcelona (IEB).
    15. Lampón, Jesús F. & Cabanelas, Pablo & Carballo-Cruz, Francisco, 2017. "A model for international production relocation: Multinationals' operational flexibility and requirements at production plant level," Journal of Business Research, Elsevier, vol. 77(C), pages 95-101.
    16. Chung, Chris Changwha & Lee, Seung-Hyun & Beamish, Paul W. & Southam, Colette & Nam, Daeil (Dale), 2013. "Pitting real options theory against risk diversification theory: International diversification and joint ownership control in economic crisis," Journal of World Business, Elsevier, vol. 48(1), pages 122-136.
    17. Sangcheol Song, 2014. "Subsidiary Divestment: The Role of Multinational Flexibility," Management International Review, Springer, vol. 54(1), pages 47-70, February.
    18. Li Dai & Lorraine Eden & Paul W. Beamish, 2017. "Caught in the crossfire: Dimensions of vulnerability and foreign multinationals' exit from war-afflicted countries," Strategic Management Journal, Wiley Blackwell, vol. 38(7), pages 1478-1498, July.
    19. Dunning, John H., 2000. "The eclectic paradigm as an envelope for economic and business theories of MNE activity," International Business Review, Elsevier, vol. 9(2), pages 163-190, April.
    20. Lampón, Jesús F., 2019. "Relocation in conditions of uncertainty: the Spanish automobile components industry during the economic crisis (2008-2012)," MPRA Paper 92738, University Library of Munich, Germany.

    More about this item

    Keywords

    Modular platforms; manufacturing networks; operational flexibility; economies of scale; economies of scope; automobile sector.;
    All these keywords.

    JEL classification:

    • L62 - Industrial Organization - - Industry Studies: Manufacturing - - - Automobiles; Other Transportation Equipment; Related Parts and Equipment
    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gov:wpregi:1502. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Patricio Sanchez-Fernandez (email available below). General contact details of provider: https://edirc.repec.org/data/geviges.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.