Coordination of Digital Transformation in International Manufacturing Networks—Challenges and Coping Mechanisms from an Organizational Perspective

Viktorija Badasjane, Anna Granlund, Mats Ahlskog and Jessica Bruch
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Viktorija Badasjane: Division of Product Realization, School of Innovation, Design and Engineering, Mälardalen University, SE-632 17 Eskilstuna, Sweden
Anna Granlund: Division of Product Realization, School of Innovation, Design and Engineering, Mälardalen University, SE-632 17 Eskilstuna, Sweden
Mats Ahlskog: Division of Product Realization, School of Innovation, Design and Engineering, Mälardalen University, SE-632 17 Eskilstuna, Sweden
Jessica Bruch: Division of Product Realization, School of Innovation, Design and Engineering, Mälardalen University, SE-632 17 Eskilstuna, Sweden

Sustainability, 2022, vol. 14, issue 4, 1-21

Abstract: 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.

Keywords: global production; digitalization; organizational structure and design theory; organizational structure; digital technologies; manufacturing networks; collaboration; operations management (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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