Managing evolving global operations networks

Abstract

For many globally dispersed organisations, the home base (HB) is a historic locus of integrative and coordinating efforts that safeguard overall performance. However, the dynamism of global operations networks is increasingly pulling the centre of gravity away from the HB and dispersing it across the network, challenging the HB’s ability to sustain its centrality over time. To counteract this tendency, this paper addresses the gap in the literature regarding the development of the network management capability of the HB within the context of its network. Data was collected through a retrospective longitudinal case study of an intra-organisational operations network of one OEM and its three foreign subsidiaries. The findings suggest a row of strategic roles and corresponding managerial capabilities, which the HB needs to develop depending on the changing subsidiaries’ competencies and HB-subsidiary relationships.