Coordinating Digital Transformation in International Manufacturing Networks

Abstract: Manufacturing companies have adapted to globalisation and collected their globally dispersed factories into factory networks, known as international manufacturing networks (IMNs). This requires coordination to access the associated competitive advantages, synchronise the factories, and exploit the capabilities inherent in those individual factories. However, when IMNs introduce digital transformation into the factories, the coordination is often hindered by uncertainty and complexity, as digital transformation requires an extensive adjustment that affects everything from the organisational structure to ways of working. Different parts of the network that are dependent on one another, for example, may be difficult to track and foresee the consequences of digital transformation. Hence, due to the respective challenges, complexities, and uncertainties, the coordination of digital transformation in IMN is paramount to examine. This licentiate thesis begins with exploring coordination mechanisms to increase the understanding of existing research and shape it into a comprehensive overview. Moreover, through case studies, this thesis explores the challenges in and enablers for coordinating digital transformation in IMNs. Altogether, the challenges and enablers are analysed within the dimensions and categories of coordination mechanisms, i.e., they are collected into an overview and described within the case study context. The most significant findings of this thesis are related to the organisational structure, which enables the coordination of digital transformation. However, plenty of challenges remain, foremost connected to the formalisation of the organisational structure, e.g., balancing the rules and guidelines for digital transformation but providing space for people performing the activities to explore and investigate digital technologies. This thesis further contributes to the existing body of research by untangling the complexity of coordination itself and, specifically, the coordination of digital transformation in IMNs, explicitly adding to the operations management field and the management of global operations. Practical contributions are also made, i.e., this thesis promotes practitioners’ increased understanding by providing specific examples and descriptions of the findings within their context. Based on the findings, this thesis offers multiple paths for future research, keeping in mind that coordination is not static but evolving, depending on the context in which it is performed.