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Coordination of Digital Transformation in International Manufacturing Networks—Challenges and Coping Mechanisms from an Organizational Perspective
Mälardalen University, School of Innovation, Design and Engineering, Innovation and Product Realisation.
Mälardalen University, School of Innovation, Design and Engineering, Innovation and Product Realisation.ORCID iD: 0000-0002-6062-2173
Mälardalen University, School of Innovation, Design and Engineering, Innovation and Product Realisation.ORCID iD: 0000-0002-9933-8532
Mälardalen University, School of Innovation, Design and Engineering, Innovation and Product Realisation.ORCID iD: 0000-0002-5963-2470
2022 (English)In: Sustainability, E-ISSN 2071-1050, Vol. 14, no 4, article id 2204Article in journal (Refereed) Published
Abstract [en]

Coordinating the digital transformation of globally dispersed factories within international manufacturing networks has become a critical issue for competitiveness, yet there has been limited attention paid to this issue in previous research. Therefore, the purpose of this paper is to, from an organizational perspective, explore the challenges in coordinating the digital transformation in an international manufacturing network and the coping mechanisms to overcome those challenges. A case study is conducted in a manufacturing company within the heavy vehicle industry, thus contributing to the limited empirical research covering coordination of digital transformation. The data is analyzed through organizational structure and design theory, and the findings are mapped into four core dimensions: differentiation, integration, centralization, and formalization. The results show 15 challenges and 11 coping mechanisms for coordination of digital transformation in international manufacturing networks, identifying the significance of the coordination uncertainty within the formalization dimension that is particularly exposed to the changes induced by digital transformation. The findings include the need for a coordination-oriented organizational structure that incorporates how and where coordination can be actualized. The research implications contribute with new insights by providing a detailed description of the created organizational structure and, in contrast to previous research, focuses specifically on the coordination aspect of digital transformation in an international manufacturing network. 

Place, publisher, year, edition, pages
MDPI , 2022. Vol. 14, no 4, article id 2204
Keywords [en]
Collaboration, Digital technologies, Digitalization, Global production, Manufacturing networks, Operations management, Organizational structure, Organizational structure and design theory
National Category
Production Engineering, Human Work Science and Ergonomics
Identifiers
URN: urn:nbn:se:mdh:diva-57538DOI: 10.3390/su14042204ISI: 000768984200001Scopus ID: 2-s2.0-85124828286OAI: oai:DiVA.org:mdh-57538DiVA, id: diva2:1641598
Available from: 2022-03-02 Created: 2022-03-02 Last updated: 2023-04-06Bibliographically approved
In thesis
1. Coordinating Digital Transformation in International Manufacturing Networks
Open this publication in new window or tab >>Coordinating Digital Transformation in International Manufacturing Networks
2023 (English)Licentiate thesis, comprehensive summary (Other academic)
Abstract [en]

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. 

Place, publisher, year, edition, pages
Eskilstuna: Mälardalen University, 2023. p. 81
Series
Mälardalen University Press Licentiate Theses, ISSN 1651-9256 ; 340
National Category
Production Engineering, Human Work Science and Ergonomics
Research subject
Innovation and Design
Identifiers
urn:nbn:se:mdh:diva-62188 (URN)978-91-7485-591-3 (ISBN)
Presentation
2023-05-26, C3-003, Mälardalens universitet, Eskilstuna, 10:00 (Swedish)
Opponent
Supervisors
Available from: 2023-04-11 Created: 2023-04-06 Last updated: 2023-05-05Bibliographically approved

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Badasjane, ViktoriaGranlund, AnnaAhlskog, MatsBruch, Jessica

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