Strategic positioning of global manufacturing virtual networks in the aeronautical industry

Abstract

The evolution of organizations that work in multinational environments has considerably altered their production strategies. One of the consequences has been the appearance of Global Manufacturing Virtual Networks (GMVNs), which include all kinds of production centres and establish a new type of vertical and horizontal collaboration between independent companies or even competitors who establish occasional collaborations on projects they could not take on individually. This paper analyses the causes behind the formation of such networks, their strategy positioning and future evolution. For that purpose, a conceptual framework is proposed based on four network features: strategy, structure, communication systems and culture. This work will deep into the strategy network feature by applying a strategic positioning model to a practical case in the aeronautical industry to gain a better understanding of how GMVNs work, its effectiveness by clarifying and putting these organizations in perspective and how they may evolve in the future.